New dam slated for construction in Xayaboury
New dam slated for construction in Xayaboury
The government has granted permission for a local company to build the Namhoung 1 hydropower dam in Xayaboury province, in line with the natio nal plan to meet the growing demand for electricity in Laos.
A cornerstone laying ceremony for the project took place in the province recently, attended by Deputy Prime Minister in charge of economic affairs Mr Somsavat Lengsavad and other high-ranking officials.
With an installed capacity of 15MW, the US$34-million dam will be solely invested in by the Simeuang Group Company.
The dam is expected be to completed at the end of 2017 and the developer anticipates it could generate income of about US$3.55 million annually.
A survey for the Namhoung 1 hydropower project, which is located 15km from Xayaboury provincial capital, began in 2010 and was completed in 2014.
The survey showed the project would be beneficial for socio-economic development so the authorities decided to allow the company to go ahead.
Over the past several years, a number of small-d hydropower dams have been built by local companies aiming to sell the electricity to EDL, which will further supply domestic demand or be sold for export.
Local companies are interested in developing this sector after witnessing the high potential and growing demand for electricity in the country and throughout the region.
Given that Laos has great potential for hydropower development, generating about one-third of Laos' capital income from natural resources, the government has a policy to promote hydropower development to boost economic growth and alleviate poverty.
Currently 27 power plants are operational in Laos with a combined installed capacity of 3,304MW. This number does not include small scale plants that have an installed capacity lower than 1MW.
Laos is aiming for a total installed capacity of about 12,000MW by 2025, a report from the Ministry of Energy and Mines states. The abundant resources of the Mekong River and its tributaries give Laos the potential to produce more than 25,000MW of electricity.
Mr Somsavat also visited the US$3.5 billion Xayaboury Hydropower Project while touring the province.
Construction of the run-of-river dam is now 48 percent complete. Commercial operation of the 1,285 MW Xayaboury hydropower plant is slated to begin in 2019.
