Investor given green light to build Namxam IV hydro project
Investor given green light to build Namxam IV hydro project
The Lao government has given the green light to a foreign investor to develop the 100MW Namxam IV Hydropower Project in Huaphan province.
Simon Consulting Co Ltd and the Lao government on October 26 signed a project development a greement (PDA) to develop the US$186 million (more than 1,512 billion) project.
Deputy Minister of Planning and Investment Dr Khamlien Pholsena represented the Lao government in signing the agreement with t he Ch airman of Simon Consulting Co Ltd, Mr Kim Won Pyo. The signing ceremony was attended by officials from both sides.
Director General of the Energy Business Department under the Ministry of Energy and Mines, Mr Xaipaseuth Phomsoupha, and Deputy Director of the Planning and Investment Department of Huaphan province, Mr Khonthong Manivone, signed as witnesses for the government.
Attorney at Law for Simon Consulting Co Ltd, Mr Im Ho, and Secretary of Chairman of Simon Consulting Co Ltd, Ms Lathdavone Phounsavath, signed as witnesses for the company.
The Lao government and the company signed a Memorandum of Understanding on the project development on March 21, 2013. An environmental and social impact assessment was certified for the planned project.
The duration of the PDA will be 18 months during which the company is required to complete the final feasibility study and environmental and social impact management plan. The company is also required to negotiate the electricity price and seek financial sources to develop the project in order to prepare for concession agreement negotiations.
The Lao government will be able to hold up to a 20 percent stake in the project and once it is operational, electricity produced by the dam will be sold to Electricite Du Laos.
