Nam Theun 2 royalties fall with water levels
Nam Theun 2 royalties fall with water levels
The royalties the government received from the Nam Theun 2 Power Company Limited decreased last year as the project pr oduced less hydroelectric power for sale, according to a report by the Lao Holding State Enterprise (LHSE).
In 2014, the government received over US$14.6 million in royalties from the company but last year received only about US$12.7 million.
Less rainfall last wet season caused the water level in Nam Theun 2 dam reservoir to drop, thereby limiting the amount of electricity that could be generated for sale, Dr Somboune Manolom told Vientiane Time s yesterday.
As the water level in the reservoir was limited, the project had to save water for generation this year, he said.
In 2014, the level of water in the reservoir reached 538 metres above sea level, while last year it fell to 537metres, said Dr Somboune.
In 2014, the project produced electricity for sale to the Electricity Generating Authority of Thailand (EGAT) totalling 5,864 GWh while 320 GWh was sold to Electricite Du Laos (EDL). Last year this decreased to 5,315 GWH to EGAT and 320 GWh to EDL.
From 2010 to 2015, since the project started generating electricity for sale, the government received the highest royalties in 2012 at about US$14.9 million.
Over the five years, the government has received a total of about US$75.4 million from the company.
The company also paid profit tax to the government totalling US$3.23 million last year.
The project is also focusing on environmental and social responsibility by coordinating with international financial institutions and relevant government sectors such as village and district authorities as well as the provincial agriculture and forestry sector, basin management and protection organisations, resettlement units and villager representatives.
Discussions with relevant partners have centred on cooperating and consulting on mechanisms to improve local people's livelihoods and raise their family incomes.
The Nam Theun 2 Hydropower Project has an installed capacity of 1,080MW with an investment cost almost US$1.3 billion in Khammuan province.
The company comprises three shareholders, Electricité de France International (40 percent), the Electricity Generating Company of Thailand (35 percent) and Lao Holding State Enterprise (25 percent).
LHSE last year received about US$14.2 5 million in dividends from the company, which was an increase over the annual plan of 11.92 percent.
