Lao firms ink deal to build Nam Neun 1 and 3 hydro plants
Lao firms ink deal to build Nam Neun 1 and 3 hydro plants
Two Lao companies - Vangsup Development and Investment Co., Ltd. and THB Group Sole Co., Ltd. - on Friday signed an agreement to build the Nam Neun 1 and 3 hydropower plants in Xieng Khuang and Huaphan provinces.
The agreement was signed by the President of Vangsub Development and Investment Co., Ltd. Ms Viengvanh Phommary and the President of THB Group Sole Co., Ltd. Mr Tong Homsombath.
The signing was witnessed by representatives from both companies along with Deputy Minister of Finance Mr Sila Viengkeo, senior government officials and company staff.
The Nam Neun 1 dam will be built in Xieng Khuang province and will have an installed capacity of 124MW and a production capacity of 575 GWh a year. Construction is expected to cost more than US$300 million.
The electricity generated will be carried via a 115kV transmission line 51 km in length from a substation in Kham district.
The Nam Neun 3 dam will be built in Huaphan province and will have an installed capacity of 60MW and a production capacity of 250 GWh per year. The price tag is expected to be over US$140 million.
The water catchment area will be 1,400 square kilometres while the reservoir will be 12 square kilometres.
Altogether the two plants will have a total installed capacity of 164MW and a generation capacity of 825 GWh per year. The companies expect the plants to start generating electricity by 2022 according to the project owner, the Vangsup Development and Investment Co., Ltd.
The project will also help to create job opportunities for local people and provide infrastructure such as roads, schools, clean water, a hospital and electricity.
It will also generate more revenue for government coffers for use in the country's social and economic development.
The two companies will try to complete the plants on schedule and carry out the work to high standards as well as strictly follow government guidelines and policies.
The companies say they are well equipped to undertake the project and have sufficient financial backing, advanced technologies and experienced technicians at their disposal.
