Banks extend loans to Namhoung 1 in Xayaboury
Banks extend loans to Namhoung 1 in Xayaboury
Two local banks and a business group in Laos have approved funds for the construction of the Nam Houng 1 hydropower project in Xayaboury province in a bid to promote the development of small scale hydropower projects in Laos.
Maybank Lao Branch, Joint Development Bank (JDB) and Simuong Group (SMG), as the respective lenders, each signed agreements to provide construction funds to Nam Houng Hydropower Company Limited in Vientiane recently.
General Manager of Maybank Lao Branch Mr Lim Wai Hoong, JDB Director Mr Sounthorn Chanthavong and SMG President Mr Ekaphanh Phapithack signed the agreements with Managing Director of Nam Houng Hydropower Company Limited.
Nam Houng 1 hydropower project is one of the projects set out in the socio-economic development plans of Xayaboury province. The purpose of the project development is to supply the domestic consumers of electric power in the province.
The project site is 15 km to the east of Xayaboury town centre, which has seen a feasibility study carried out since 2010 that was completed last year.
This small-scale hydropower project has three generators with a combined generation capacity of 15 MW and the company is investing more than US$34 million in the project.
Work on construction commenced in August this year and completion of the project is slated for 2017.
Once the Nam Houng 1 is completed, it is expected to generate incomes of US$3.55 million per year and will contribute to the development of Laos as well as eradicating poverty in the country.
According to a recent report from the government, the abundant resources of the Mekong River and its tributaries give Laos the potential to produce more than 25,000MW of electricity.
Laos has 38 power plants for which development has been completed, with a total installed capacity of 6,264MW, according to a report in March this year. Laos is also aiming for a total installed capacity of about 12,000MW by 2025.
Currently a total of 89.6 percent of the population has access to electricity across Laos.
