Government goes ahead Hongsa lignite power plant

(KPL) The Government has given a license to the Pouphai Mining Company in exploration of lignite and the Hongsa Power Company Ltd in conducting a concession of the construction of Hongsa fired power electricity plant with the generation capacity of 1,878 megawatts in Sayaboury province.
Two concessions were signed in Vientiane Capital on 30 November between Deputy Minister of Planning and Investment Thongmy Phomvisay, Director General of Energy Promotion and Development, Mr Saypraseuth Phomsoupha and two representatives from two investing companies of the Hongsa power Limited and the Pouphai Mining Company.
The Construction of Hongsa Fired Power Plant Project has been effective, thanks to Lao and Thai Memorandum of Understanding for the purchase of 7,000 megawatts to Thailand in 2007. Under the MoU, the Hongsa Power Plant will supply electricity to Thailand by 2015.
This is thanks to the existing cooperation between Laos and Thailand, and in response to the Thailand's demand on electricity and socio-economic development of Laos.
The construction was a joint venture US$4 billion Hongsa lignite fired power plant in Sayaboury province. The project shareholders are the Ratchaburi Electricity Generating Holding Public Company (RATCH), Banpu Power Limited (BPP) and Lao Holding State Enterprise (LHSE) to construct lignite mining and electricity generation facilities on a 60 square km site in Hongsa district, more than 300 km from Vientiane Capital.
The concession period begins on the execution date and ends 25 years after the commercial operation date of the project, according to the agreement.
The Electricity Generating Authority of Thailand (EGAT) has agreed to purchase 1,473 MW from the plant in accordance with the Tariff Memorandum of Understanding signed in May this year.
About 100 MW of power will be sold to the Electricite du Laos for domestic consumption, to give a boost to local socio-economic development. The remaining power will be used by the project for internal mining and power generating operations.
Thai companies BPP and RATCH each hold a 40 percent stake in the project while LHSE holds 20 percent.
The LHSE, BPP will utilise extensive mining and power project development experiences to provide necessary support for the project while RATCH will provide its expertise in power project development to ensure the project uses the most up-to-date and efficient technologies.
LHSE has valuable power development experience in Laos and will ensure the necessary coordination with local authorities.