Google Search


Online store



Monday, June 23, 2008

Malaysia signs on hydro plant

Rohas Euco Industries Bhd of Malaysia expects to spend about 870 billion kip (US$100 million) to construct the Nam Sane 3 hydropower project in Xieng Khuang province.

“The project will be a shared investment, with the Lao government contributing 25 percent and the investor 75 percent,” according to a press release from the Ministry of Planning and Investment.

The ministry signed a Project Development Agreement (PDA) with the investor in Vientiane last Thursday.

The PDA will allow the investor to spend 18 months conducting additional surveys to obtain more details about the project, which is planned for Mokmay district.

An official from the Energy Promotion and Development Department said during the PDA period the investor would have to revise previous studies, including the feasibility study and the environmental and social impact study.

“The investor will also have to discuss the power purchase price during this time,” the official said.

When those components are completed, the project will move forward to other agreements such as concession and shareholder agreements between the investor and the Lao government.

A power purchase agreement will also be made between Electricite du Laos (EDL) and the investor.

The dam will be about 75 metres high and 400 metres long. It is expected to generate 300 to 350 GWh of electricity per year, which will be sold to EDL for domestic consumption and export.

The project will be run by the investor for a 30 year period after the concession agreement is signed, according to the press release.

The PDA was signed after the investor completed a previous study that had been conducted after the signing of a memorandum of understanding with the ministry in June 2006.

Last week the Lao government signed an additional minute of understanding with a Vietnamese investor for a 3 trillion kip (US$332 million) investment in the Xekaman 4 hydropower project in Xekong province. This is scheduled to start in 2009 and is set to generate electricity in 2013 for export to Vietnam .

Laos currently has 11 major hydropower plants in operation and at least 36 smaller ones. These generate energy for both domestic and export markets and have a combined installed capacity of more than 670MW. The 36 smaller hydropower plants are all government investments.

These plants generate approximately 3.5 billion kWh per year, of which about 2.2 billion kWh is exported to Thailand .

By Phonsavanh Vongsay
(Latest Update June 23, 2008)


Anonymous said...

Dear Phanomsinh,
I see you are very much into HPP. I am looking for some general info about HPP maintenance costs. Could you share with me what typically would be the O&M costs for a 18 Mw plant, including manpower, equipment maintenance and overhaul costs every 10 years.
Your expert help would be much appreciated.

Anonymous said...


Love your column. I'm an Energy Analyst dealing mainly w/Asia. There are a lot of projects in Vietnam, Laos that you can't really find any info on. Your site is always so informative, keep up the good work.