Lignite Power Plant in Sayaboury in progress

(KPL) More than 300 families in five villages living near Hongsa Lignite Power Plant Construction Project site in Xayaboury province might be removed to new resettlement area if the agreement on electricity purchasing reached between investor and purchaser at the end of this year.The Hongsa Lignite Power Plant Construction Project has been invested by Hongsa Company since 2006 but now the construction work is suspended due to deficiency of finance. At the moment, the Hongsa Lignite Power Plant Construction Project has been taken over by the Ban Pou Company of Thailand after Hongsa Company has announced to suspend this project. Before carrying out the survey of feasibility study, developers of the Lignite Power Plant in Xayaboury Province has pledged to provide with about US$16 million to compensate to affecting villagers for resettlement areas. Mr. Sao Khamchan, Head of Energy and Mines Office of Xayaboury province disclosed yesterday that the Lignite Power Plant Construction Project is having a disputation between owner project and customer.The negotiation of purchasing the electricity from the Hongsa Power Plant is being under the discussion, he continued.If the project does not meet agreement the construction work would be sure delayed. Now two sides are discussing on mutual benefit bases on mutual understanding and cooperation in effectively that reflected to positively target plan on supplying the electricity by 2013. The Lignite Power Plant in Xayaboury province was invested by Thai investor, with an expectation of investment approximately more than US$1 billion with capacity production of 1,200 Megawatt.