New power plant to start construction in Xekong
New power plant to start construction in Xekong
Lao and Chinese energy developers expect to commence work on the Nam Bi Cascade Hydropower project in Dakcheung district of Xekong province early next year, with the construction phase set out over a five year period .
The developers, Nam Bi Power Company Limited, signed a contract agreement on the project with Powerchina Chengdu Engineering Corporation Limited on Thursday in Vientiane, to allow the Chinese company to run the project construction.
The signing ceremony was attended by officials from the Ministry of Energy and Mines, Chinese Embassy to Laos, Xekong province and the contractor companies.
The project will have an investment value of about 2.22 trillion kip (US$272 million), according to a press release at the ceremony.
Once the construction is complete, the dam will have an installed capacity of 135 megawatts (MW), that will be able to generate energy of about 680Gwh annually to sell to Electricite du Laos (EDL) and export to neighbouring countries.
Dr Bounsalong Southidara, Chairman of Nam Bi Power Company Limited, said yesterday that the company will own and operate the project for about 25 to 30 years, after which it will belong to the government.
“Currently we are in negotiation with the government on how many years we will own and operate the project,” Dr Bounsalong said.
Nam Bi Power Company Limited was established as a joint venture of two local companies, those being EDL-Gen, which holds 80 percent of the shares and Chanthavone Road and Bridge Construction and Maintenance Company, which holds 20 percent.
In recent years, the energy sector has played a part in social development, notably in the fields of education, human resources, healthcare, and job creation.
Twenty-eight power plants are currently operational with an installed capacity of more than 3,300MW. Laos is aiming for a total installed capacity of about 12,000MW by 2025, the Ministry of Energy and Mines said.
The abundant resources of the Mekong River and its tributaries give Laos the potential to produce more than 25,000MW of electricity.
