Nam Ou hydro project moves to next phase

Sinohydro Corporation Ltd of China signed a development agreement with the Lao government on Monday for the Nam Ou Hydropower Project in Phongsaly and Luang Prabang provinces.
The Assistant Managing Director of Sinohydro Corporation Ltd, Mr Shen Decai ( left ), and the Vice President of the Committee for Planning and Investment, Mr Thongmy Phomvixay, shake hands after signing the agreement.
Director General of the Electricity Department Mr Houmphone Bulyaphol said at the signing that the project would cost between 6.7 trillion and 7.7 trillion kip (US$700 to 800 million).
The dam will be a joint venture between the Chinese company and the Lao government, which will hold 20 to 25 percent of the share.
“The investor will begin construction in 2009 with completion scheduled for 2015,” said an official from the Committee for Planning and Investment.
The company has completed a one-year feasibility study for the project and is currently analysing the potential environmental impacts before construction begins.
“Once the work is completed, the project will have an installation capacity of about 500 to 600MW,” said Mr Houmphone.
The project will sell 50 to 70MW of this to Electricite du Laos (EDL), and the rest is likely to be exported to Thailand or China . “The company is now discussing with EDL how much power they need to buy for domestic consumption,” Mr Houmphone said.
The Chinese company will operate the project for 30 years, including the construction period.
The Assistant Managing Director of Sinohydro Corporation Ltd, Mr Shen Decai, said the project was part of strategies to help supply energy to the Mekong sub-region as well as to Asean countries.
“It is also a project to create further belief in investment in Laos ,” Mr Shen added.
Mr Houmphone said this would be the biggest of four hydropower projects on the Nam Ou, all of which would be developed by the same company.
“Once these four dams are built, they will have a total installation capacity of about 1,300MW,” Mr Houmphone said.


By Phonsavanh Vongsay (Latest Update October 17, 2007)