Energy developers sell electricity to EDL
Energy developers sell electricity to EDL
Nam Phak Power Company Limited (NPCL) signed a power purchase agreement (PPA) with Electricité du Laos (EDL) in Vientiane last month to supply to EDL the power generated once construction is complete.
NPCL was represented by its General Manager, Mr Bob Mohana Sundaram and EDL was represented by its Managing Director, Mr Sisavath Thiravong.
NPCL, a ‘Special Project Company' established in the Lao PDR, will develop a 150 megawatts (MW) hydroelectric project located in Champassak province at the southwestern corner of the Bolaven Plateau, approximately 10km south west of Pakxong.
The project takes advantage of a 700m difference in elevation between the plateau and the plains to the south and is a river-runoff scheme that will collect water from a number of streams on the plateau and convey this via two diversions to the Phou Pong reservoir.
The project is widely regarded as environmentally and socially friendly – for instance, it does not have any resettlement issues.
NPCL, which will spend about 2 trillion kip (US$250 million) on the Nam Phak power plant construction, consists of three shareholders namely Nava Bharat Lao Energy from Singapore, EDL and Kobe Green Power from Japan owning 70 percent, 15 percent and 15 percent stakes respectively, according to a press release from EDL.
Nava Bharat Lao Energy, a subsidiary of the energy conglomerate from India - Nava Bharat Ve ntures, will take the lead in implementing and operating the project.
The Nam Phak hydroelectric project has come a long way since its inception in 2007 when a Memorandum of Understanding (MoU) with the government was obtained.
The company executed a Concession Agreement (CA) with the government on October 2, 2014 for development of the project on a build, operate and transfer (BOT) basis.
Most of the environmental and other major approvals have been received or are in an advanced stage.
The power generated from this project will benefit Laos immensely.
It will not only contribute towards the government's vision to make Laos the ‘Power Hub of South-East Asia', but the project will also substantially contribute to the country's economy in the form of job opportunities and increase the national revenue through payment of taxes and royalties by NPCL.
The provincial government will also benefit greatly through the new extensive infrastructure d evelopment like 120km of roads and bridges, a community development programme, forest and environmental protection as well as many other corporate social responsibility (CSR) activities.
