Energy developers ink concession deal
Energy developers ink concession deal
The Nam Mo 2 Power Company Limited, a private energy development company owned by Lao and Vietnamese companies, on Thursday penned a 27-year concession agreement with the Lao government for the Nam Mo 2 Hydroelectric Power Project.
The concession agreement will come into effect when the Commercial Operation Date (COD) is launched with construction of the Nam Mo 2 hydropower plant in Xieng Khuang province to take three years and six months.
Deputy Minister of Planning and Investment Dr Khamlien Pholsena signed the deal with Nam Mo 2 Power Company Limited's Managing Director Mr Tran Xuan Thach.
The company has five shareholders with three private companies from Laos and two companies from Vietnam.
Speaking at the signing ceremony, Dr Khamlien said the concession agreement showed the determination of private investors to help with hydroelectric power development for the national grid.
�Interestingly, shareholders of the Nam Mo 2 Hydro Power Company Limited are not foreign companies alone but several private companies are owned by Lao investors, which indicates the growth of local businesspeople in Laos,� he said.
Dr Khamlien called for the investors to strictly implement the project in accordance with the approved plan.
�If implementation of the project can be completed prior to the date set, it would be tremendous. We [the government] are ready to help with any acceleration if needed,� he said, adding that environmental issues were also a priority.
�Most importantly, local villagers should be considered in the recruitment of labour because it would provide them with an income throughout the construction period,� he added.
Meanwhile, President of Nam Mo 2 Hydro Power Company Limited Mr Phongsavath Senaphuan told the media his company had just finished installing transmission lines at the project site.
�We have made quite impressive progress, especially the installation of transmission lines. In addition, the potential negative social impacts have been resolved and any harmful impacts on the environment have been assessed,� he said.
During construction the government will receive US$2.36 million in profit taxes from the project contractor and salary taxes of US$2.36 million along with US$500,000 per year for the community development fund.
The environment protection fund will receive US$50,000 a year from the 1st to 9th years while one percent of the company's income will be deducted from the 10th to 27th year of the project.
At the same time, the budget for forest replanting will be over US$1.19 million.
The Nam Mo 2 Power Plant, which is located in Mork district, Xieng Khuang province, will have a total capacity of 120 MW and cost over US$217.83 million.
