New hydro plant in pipeline at Savannakhet
New hydro plant in pipeline at Savannakhet
Lao and Chinese energy companies expect to complete a feasibility study (FS) on a proposed hydropower plant development project in Savannakhet province in the next five or six months following an agreement made last November.
Simuong Group Co Ltd (SMG) has engaged a Chinese company to conduct the study and dam design of Xelanong 3 hydropower project in Nong district of Savannakhet province.
“So far they have co mpleted the field study and they are now in the initial stages of dam design, environment assessment and preparation of reports,” Nam Phao Hydropower Co Ltd Deputy Director and SMG representative, M r Samly Mahavong, said yesterday.
SMG engaged the Chinese company at a cost of 17.6 billion kip (US$2.2 million) to conduct the FS with an expected completion date of 18 months.
The Xelanong 3 project site is about 60km from the town of Savannakhet.
“I think that it is possible to develop this power plant; it may have an installed capacity of about 60 to 70 megawatts (MW),” Samly said.
However, according to an initial study, the project was expected to have an installed capacity of about 80 MW with an expected generation of 305.62GWh annually and to need an investment of about 1.3 trillion kip (US$162.88 million), according to a handout.
Simuong Group signed the project memorandum of understanding (MOU) with the Planning and Investment Ministry in October 2013.
Preliminary studies were undertaken by Hydro Lao earlier last year.
The MOU includes provisions for the investor to conduct studies including assessments of the potential social and environmental impacts of the plant as well as other issues.
The company will receive permission to start development immediately should the study yield positive results, with a concession by the government to operate the project for 30 years.
SMG signed an agreement with the Savannakhet provincial administration to conduct an initial feasibility study on the dam in 2011.
The project is expected to generate energy for local supply.
Laos still has many other hydropower plants with the potential to sell carbon credits, and energy developers have already been contracted to sell these credits to other overseas companies.
Twenty-seven power plants are currently operational in Laos with a combined installed capacity of about 3,304MW.
Laos is aiming for total installed capacity of about 12,000MW by 2025, a ministry report has noted.
The abundant resources of the Mekong River and its tributaries give Laos the potential to produce more than 25,000MW.
The SMG was established in September 2001. Since its inception, the company has successfully executed many projects, both under government and internationally funded programmes.
Since 2001, the company has brought together diverse concerns in road-bridge and building construction, survey design, energy and mining consultation, real estate, automotives, import-export and banking under the umbrella of SMG of Laos.
