PM kicks start Nam Lik 1-2 power plant's power generation

(KPL) Prime Minister Bouasone Bouphavanh attended the ceremony of the commencement of the operation of the Nam Lik 1-2 hydropower plant, located in Naxeng village, Feuang district, Vientiane province, on 29 August.

The Lao and Chinese governments put in money to build this dam and the construction work was carried out by China International Water Electric Corporation or CWE.

The CWE, a state owned company of China of China, held a 90 per cent share in the joint venture and the rest of the shares were owned by Electricite du Laos or EDL.

The construction of the Nam Lik 1-2 hydropower plant construction project began in 2007 with a total investment of US$150 million.

This power plant could generate 100 megawatts and the bulk of the energy would be sold to the EDL.

According to the concession agreement, the company will build, own and operate the Nam Lik 1-2 hydropower plant power plant for 25 years and then hand it over to the Lao government.

The Lao government was at the stage of expanding the national electricity grid to all districts in the country by 2015 and also to light up 90 per cent of Lao households by 2020.

At present, 70 per cent of Lao households had electricity, while the rest, 30 percent, lived in the dark.

This event was attended by Minister of Energy and Mines, Mr. Souliving Daravong, the EDL Managing Director, Mr. Khammany Inthirath and Chinese Ambassador to Laos, Ms. Bu jiangau.

Malaysian company builds hydropower plant

(KPL) The Asia Pacific Business Link Sdn Bhd Co.,Ltd (AP Bizlink) of Malaysia will be building a 130-megawatt Nampha power project, which will encompass the territory of two provinces, Long district in the northern Luang Namtha province and Meung district in the neighbouring Bokeo province.

The USD 350-million construction work on the hydropower plant will commence next year and is scheduled for completion in 2015.

The agreement of this construction project was signed on August 20 between Minister of Planning and Investment, Mr. Thongmy Phomvisay and President of AP Bizlink, Mr. Datuk Low Siak Wei, in Vientiane.

The AP Bizlink has its headquarters in Kuala Lumpur, Malaysia, and its business interests are power project development, mining and construction.

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Laos, Thailand sign power purchase agreement

(KPL) The developers of the Sepien-Senamnoi Hydropower Project signed here last week a memorandum of understanding on electricity purchase with the Electricity Generating Authority of Thailand (EGAT).

The signatories to the agreement were representatives of the Ratchaburi Electricity Generating Holding (public), the SK Engineering and Construction, the Korea Western Power Group, the Lao Holding State Enterprise and the EGAT.

According to the document, the EGAT is committed to purchasing electricity generated from the Sepien-Senamnoi Hydropower Project for 27 years.

The Sepien-Senamnoi Hydropower Project is the fourth biggest dam in the Lao PDR, including the Nam Ngum 2 and 3 in Vientiane provinces, and the Hongsa Lignite Power House in northwestern Sayaboury province.

The project has an investment of US$877 million. The project�s developers confirm that they will complete the construction as planned and begin to generate power by 2018.

The Sepien-Senamnoi Hydropower Project is a cooperation project between the Lao and Thai governments.

The dam�s area stretches partly on the territories of the southern Attapeu and Champassak provinces.

Hongsa lignite power plant to start operation as scheduled

(KPL) The Hongsa Lignite Power Plant in Sayaboury province with the generation capacity of 1,878 megawatts will surely start operation in 2015, following the approval of loans of US$2.7 billion by nine financial institutes of Thailand to Hongsa Power Company late last month.

The Hongsa Power Company, invested by the Ratchaburi Holding Electricity Generating Company Ltd. � a private electricity generator in Thailand, would generate electricity from thermal power�lignite.

Meanwhile, the Thai investor needs some more funds to further development its thermal power plant.

Mr Nonpol Mirintangkul, Managing Director of the Ratchaburi Holding Electricity Generating Company Ltd, has recently disclosed that the approval of loans from the Thai financial institutes was a significant step and landmark for the Hongsa Lignite Power Plant thanks to our progressive work of construction.

Mr Mirintangkul who is also Chairman of the Managing Board of Hongsa Power Company, added that the Hongsa lignite power plant would commercially operate in 2015, which will also constitute a fundamental base of the national economy and benefit for Laos and Thailand.

The Hongsa Lignite Power Plant will be equipped with three sets of generators with a capacity of 1,878 megawatts and net capacity of 1,653 megawatts.

Indian loan to power up Laos

The government of India has provided Laos with a loan of US$72.55 million to develop two electricity infrastructure projects.

A loan agreement was signed yesterday in Vientiane by representatives from the Lao government and the Indian Exim Bank in the presence of the two countries' presidents, according to the Lao Ministry of Foreign Affairs.

The Indian president Pratibha Devisingh Patil and her delegation concluded a five-day state visit to Laos yesterday, undertaken in response to an invitation from her Lao counterpart Mr Choummaly Sayasone.

According to the ministry, India will consider providing further low interest rate loans to help Laos implement priority development projects.

A number of successful outcomes were reached during the visit of President Patil, according to the ministry.

The two presidents held bilateral talks and exchanged views on a wide range of issues in relation to bilateral cooperation between Laos and India.

Both leaders said they highly valued the traditional friendly relations and sound cooperation between the two countries over the 54 years since diplomatic ties between Laos and India were established on February 2, 1956.

The two nations have maintained regular exchange visits by officials at various levels, particularly between leaders.

The Lao side expressed heartfelt appreciation and thanks to the government and people of India for the assistance they have extended to Laos.

Both sides affirmed continued mutual assistance and support to one another through both bilateral and multilateral cooperation frameworks on the regional and international stage to bring tangible benefits to the people of the two countries.

President Patil also received courtesy calls from Prime Minister Bouasone Bouphavanh and President of the Lao National Assembly Thongsing Thammavong.

Both leaders attended a ceremony to witness the signing of an extension to a cultural exchange agreement between Laos and India for 2011-2013.

The two leaders, via video conference, jointly pressed a button to inaugurate a 115KV transmission line electricity project in Champassak province.

The 53km long Pakxong-Chiangxai-bangyo double circuit transmission line project was financed by a soft loan provided by the government of India.

The two presidents attended a ceremony to witness the signing of a Letter of Expression of Investment Interest between the Indian-based Tata Company and the Lao ministries of energy and mines, and planning and investment.

They also witnessed the signing of cooperation documents between the Federation of Indian Chambers of Commerce and Industry and the Lao National Chamber of Industry and Commerce.

Both sides expressed satisfaction with the successful and meaningful outcomes reached during President Patil's visit, which brought the traditional friendly relations and cooperation between Laos and India to new heights.



By Times Reporters
(Latest Update September 14, 2010)

Nam Theun 2 Project Hands Lao Government US$100m of Assets

(KPL) The Nam Theun 2 Power Company (NTPC) has transferred ownership of over US$100 million worth of assets to the Lao government, following the start of commercial operations at the hydroelectricity plant.

A ceremony was held in Thakhek, Khammouane province, on June 29 to commemorate the handover of the assets, built under the concession agreement between the government and the NTPC. A total of over US$102m worth of roads, electricity transmission lines, and community facilities now belongs to various government agencies and the Lao public. The community assets include schools, health centres, agricultural facilities and water supply systems. Nam Theun 2 began commercial export of 1,000 MW of electricity in March 2010, and agreed an official commercial operations date of April 30 with its main customer, the Electricity Generating Authority of Thailand.

Speaking at the ceremony, Jean-Christophe Philbe, Chairman of the NTPC Board of Directors, said that the 270 km of roads built by the project have already made a huge difference to peoples' lives, linking Nakai district to the rest of Khammouane province and connecting its people to the rest of the nation. Mr Philbe said that the ability to access markets and services has delivered instant leap in quality of life in the area.

Earlier in the day a symbolic handover was held at a 115/22 kV electricity substation in Gnommalath district. The substation and associated transmission lines have been handed over to the Electricite du Laos to allow the national grid to receive the 70 MW of domestic power generated by Nam Theun 2. NTPC has also built a 22 kV distribution system bringing electricity to villages on the Nakai Plateau.

On symbolically receiving all the assets from the NTPC, the Minister of Energy and Mining, Soulivong Daravong, called the Nam Theun 2 Project one of Lao PDR's development priorities, and said that in addition to huge financial benefits, the project also marked the beginning of rural development in the area. "Nam Theun 2 has enhanced public services and infrastructure, thereby improving livelihoods, creating permanent jobs, and raising the living standards of local people, which are becoming better and better every day," said the minister.

Also present at the event, the Vice-Governor of Khammouane province, Oday Soudaphone, described Nam Theun 2 as a multi-purpose project which was alleviating poverty among the people of central Khammouane. He thanked NTPC for the facilities and promised that the provincial authority would actively manage and use the assets with maximum efficiency.

Mr Khambay Damlath, Governor of Khammouane, added that Nam Theun 2 had already had a very positive effect on the whole country, as its development had `created the conditions and opportunity for the Lao PDR to attract foreign investment by setting a model for other projects to follow`.

EGAT inks electricity purchase from Sayaboury hydropower dam

(KPL) The Electricity Generating Authority of Thailand (EGAT) has agreed to purchase 1,220-kW at a cost of 2,159 baht per kilowatt-hours (kWh), from Sayaboury hydropower dam. The dam is an investment by the Ch. Karnchang Public Company Ltd. of Thailand.

The EGAT will purchase electricity from Sayaboury hydropower dam throughout the concession of the Ch. Karnchang Public Company Ltd of Thailand, by connecting a 220 km 500-kW transmission line of the EGAT from a substation in Loei province, northeast Thailand, to the electricity system of the Sayaboury hydropower dam.

By 2019, the Sayaboury hydropower dam is expected to generate electricity and export it to Thailand.

The Sayaboury hydropower dam will be built in Sayaboury district, northwestern Laos, under the management of the Mekong River Commission and is based on an agreement reached between Cambodia, Laos, Thailand and Vietnam related to the cooperation and sustainable development for lower part of the Mekong River.

A signing ceremony of a memorandum of understanding on the electricity purchase took place at the Done Chanh Palace Hotel, 5 July between representatives of the EGAT and the Ch. Karnchang Public Company Ltd. of Thailand in presence of Standing Deputy Prime Minister Somsavat Lengsavad and officials of both sides.

Luang Namtha helps poor families access electricity

KPL) The Electricite du Laos in Louang Namtha province early this month held a meeting on the electrification in 157 villages, housing 1,356 households.

The project is to help the poor access electricity by providing them loans of 700,000 kip which will be used for installing electricity into their houses.

Each household is required to pay 20,000 kip monthly to the financer EDL for 35 months after the electricity installation is over.

This amount excludes electric bill that they have to pay to the EDL monthly. The meeting, held on July 9 was attended by Coordinator of the Electrification for Poor Family Project, Mr. Phonesavanh Ou-domvilay, representatives of the Electricite du Laos in Louang Namtha province and local authorities.

The development of basic infrastructure is given much attention from the government of Laos to help the Lao people live over the poverty by 2020.

Over 100 rural villages in Houaphan to enjoy electricity by 2012

(KPL) 124 villages in Phathy area, Viengthong district, northeast province of Houaphanh will enjoy electricity access in the next two years after a contract on installation of 22/0.4 KV transmission line was signed last Friday.

The Government has agreed to invest 18.2 billion kip in the expansion of electricity network systems of 22 KV stretching 369 km and 130.5 km long of 0.4 KV access to these villages, said Director General of Ministry of Energy and Mining's Energy Department, Mr Chalern Inthavong.

The contract signed between Head of Ministry of Energy and Mining's Energy Department, Mr Chalern Inthavong and Director of Hung Heung Electrical Construction Company Mr Phongphet Phanyasili, at Lao Plaza Hotel, on 16 July.

The contract was stipulated that the Hung Heung Electrical Construction, a contractor company will install transmission line access to the Phathy area to be completed within 30 months.

This project is a part of government plan to promote the socio-economic development and improve the living conditions of people in rural areas, he continued.

He stated further that the Government also expected to sign more contracts with constructing companies to expand more the power grid network linking Sam Nuea to Viengthong districts, Viengsay to Samtay districts and some development village cluster in the near future.

Presently, Electricite du Laos heeds its master plan on 115 KV power grid expansion networks nationwide.

The Electricite du Laos, a main supplier company is on mission of power grid installation linking Peak district of Xiengkhouang province to Sam Nuea district of Houaphanh province, which expects to be completed by 2012.

Last year's statistic of Houaphanh province showed that about 37 percent of household of eight districts in the province were accessible by electricity.

Five districts of them, imported electricity from neighbouring country of Vietnam and the rest used electricity generating from small scale hydropower project, said Head of Ministry of Energy and Mining's Planning Department, Mr KoneThong Phoumiphon.

Phasanin village to have light

(KPL) Villagers of Phasanin, Sieng-ngeun district, Luang Prabang province, are looking forward to electricity in the near future after a 703-million-kip contract on power grid installation for the village was signed in Luang Prabang on Tuesday.

The signatories to the document were Mr. Bountham Senphansily, Head of the Electricite du Laos (EDL) in the northern province of Luang Prabang and Mr. Fa Khai Song, Chief of Phasanin village.

The event was witnessed by Mr. Somdy Douangpaseuth, Chief of Siengngeun district and officials of parties concerned.

The project of basic infrastructure development will be conducted in two phases. The first one is the installation of power meters for the local households. This work is expected to take 30 days after the signing of the contract.

The second phase is for the installation of a 7.4 km long medium voltage power line, and a 1.7 km long low voltage power line, and two transformers.

Each household will pay 800,000 kip to the EDL after the power meter is installed.

According to the contract, the EDL will be responsible for over 461 million kip of the investment and villagers for 242 million kip.

The contract also notes that the repayment will be done on four instalments.

The first one in September this year, the second to fourth in March, June and September of 2011, respectively. On each instalment, the payment will amount to 60.5 million kip.

Earth Hour in Vientiane saves 110,000kw of electricity

(KPL) Vientiane residents saved 110,000 kw of electricity during the campaign of the Earth Hour, launched worldwide, including Vientiane Capital of Laos, last Saturday. From 19:00 to 20:00 hours on the day locally, lights were off for one hour, saving up 62 million kip. This figure was reported by Electricite du Laos. During the period, more than 4,000 cities and towns in 92 registered countries joined the campaign of the Earth Hour last Saturday. Deputy Prime Minister Asang Laoly and the Head of the Water Resource and Environment Administration Ms Khempheng Pholsena officially switched off the lights of the capital city at 7 pm sharp at the "Patouxay" Monument (Arc of Triumph). This ceremonial event was witnessed by 1,000 local people.

This event was initiated by the Lao station of World Wildlife Fund (WWF) to raise awareness of climate change and to give people a voice in the future of the planet. Ms Khempheng said the Earth Hour was about households and businesses switching off their non-essential lights and other electrical appliances for one hour to highlight how the small actions of every person can make a collective difference.

She said climate change was not only a problem for international community, but presented particular challenges for a country like Laos. She also called for developed countries to assist those developing ones to gain access to clean technology for their increasing energy needs. This was the first time Laos participated in the Earth Hour campaign, since its debut in 2007. Ms Khempheng said she hoped it would encourage the public to understand the importance of saving energy, saving the environment and dealing with climate change. "If people could simply make energy saving a habit, it would make the task of making Laos a green and clean country easier," she added.

Luang Prabang: almost 70 per cent of population access electricity

(KPL) Electricity supply has covered 630 villages across the northern province of Luang Prabang, said Director of Luang Prabang Energy and Mining Service, Mr. Saysamone Thidakhone.

Mr. Saysamone said that the villages were inhabited by 46,520 families, accounting for 66.47 per cent of the province population.

The number of electricity-connected households has increased by 32.89 per cent since 2005, according to Mr. Saysamone.

The government is also considering proposals presented by foreign companies to develop hydropower projects in the province, including the hydropower development projects on three rivers of Nam Khane, Nam Ou, and Nam Seuang.

One of the most important hydropower development projects is the Nam Ngum 5 Hydropower Plant which is being built by a Chinese company Sino Hydro Power. The project is expected to be over in 2011.

The investment in mining such as gold, copper, iron and tin, is interesting for investors. For five years the province has permitted 126 companies to invest in the province, mainly in mining.

This year, the cost of mining in the province is estimated at 19.48 billion kip, said Mr. Saysamone. Over 30 companies have presented proposals to the province to invest in mining sector so far this year.

1,300 households in Vientiane province to enjoy electric lights soon

(KPL) Around 1,300 households in 12 villages, Mad district, Vientiane province, are expected to access electricity in 18 months.

An agreement on the expansion of power grid in Vientiane province was signed here on March 29 by Deputy Head of Electricite du Laos in Vientiane province, Mr. Balanh Thanmounty, and Director of the PVP Research and Installation Electricity Company Ltd. Mr. Souvanpheng Chanvanpheng.

Witnesses at the signing ceremony were Chief of Mad district, Mr. Khamsoth Phetdavanh, and Director of the Electricite du Laos, Mr. Savad Phoummala.

The power grid expansion project, costing 19.53 billion kip, will begin next month.

Four out of 19.5 billion kip of the installation is provided by the government of the Lao PDR.

The project work includes the installation of a 79.6 km long 22-kw power line from Nasavang village to Phonsavath village; the installation of thirteen 0.4-kw transformers along a 49-km 0.4 kw power line, and the installation of power meters for 1,300 households.

The 12 villages are the last group to have accessed electricity in Mad district, which has 33 villages, said Mr. Khamsoth.

6,400 poor families have electricity

(KPL) Over 6,400 poor families access to electricity under the Electricity Extension Project, financed by the World Bank and AusAID.

The project, which began in 2008, focuses on helping the poor families in 37 districts of seven central and southern provinces to gain an access to electricity, by investing 700,000 kip in electricity installation of a poor family. Every family who has been installed with electricity network is required to repay 20,000 kip a month to the project and the repayment will be over in 35 months, said Head of the Electricity Extension Project, Mr. Yankham Duangsavanh.

So far the project has been implemented in 249 villages or 95% of its target. And the project is expected to complete the electricity installation for the poor families in seven central and southern provinces soon before starting its activities in nine northern provinces. Under this programme, Luang Prabang will be the first among the northern provinces to have it implemented.

The Electricite du Laos in cooperation with the Electricity Extension Company held a seminar on electricity supply to people in rural areas. The seminar took place in Luang Prabang province on March 23.

Present at the event were Director of the Electricite du Laos, Mr. Boun-oum Sivanpheng and relevant officials from northern and southern provinces.

Nam Ngum 2 dam starts storing water for electricity generation

(KPL) The Nam Ngum 2 dam started storing water to generate electricity after its construction works had completed three months ahead of schedule.

The closing ceremony of the turbine channel to store water in the Nam Ngum 2 dam, in Hom district, Vientiane province, was held on 18 March.

Taking part in the event were Standing Deputy Prime Minister Somsavat Lengsavad, Minister of Energy and Mining, Mr Soulivong Daravong, and other high-ranking officials including specialists of Nam Ngum 2 and representatives of Electricite du Laos.

The Nam Ngum 2 dam is one of many mega hydropower construction projects built in Laos. The construction project initiated in 2006 which was scheduled to be over in December 2010 but the construction work was finished ahead of the set plan for three months. Originally the construction is scheduled to be over in March 2011.

The store-up of water for generating electricity would start in the next five months. It is also expected that additional rainfalls will raise the water level in the Nam Ngum 2 reservoir, which will be high enough for generating electricity.

The Nam Ngum 2 dam is expected to generate electricity on a trial basis in the coming August and in the next four months (upcoming December 2010). The dam will operate its full strength to generate electricity and start distributing electricity into the transmission lines.

The Nam Ngum 2 dam, operated by the Nam Ngum 2 Company Ltd, which has main shareholders including the leading electricity supplier company in Laos "Electricite du Laos" and the Southeast Asia Energy Ltd (the main shareholder of this company was the Ch Karnchang Public Company Limited of Thailand).

The Nam Ngum 2 dam has a generating capacity of 615 megawatts and was built by Ch Karnchang ( Laos) Ltd.

Operating under a concession of 27 years and six months starting this year end, the dam will generate approximately 2,218 gigawatts hour, which will be sold to the Electricity Generating Authority of Thailand (Egat).

Koudkhae villagers enjoy electricity

(KPL) Electricity has come to Koudkhae village, Outhoumphone district, Savannakhet province. It came in the middle of February 2010. Seventy-five households, albeit only 64 per cent of all the households of this village, enjoyed access to electricity.
A ceremony to commemorate this event was held under the presidency of Mr Thonkeo Phouttha Kaiyalath, Head of Energy and Mining of this province and he formally handed over the electrical infrastructure to the chief of Koudkhae village, Mr Boualoi. Koudkhae village, a remote village, had 124 households, 140 families, a population of 821 and 409 of them were female. Outhoumphone district had 106 villages, 96 of them had access to electricity and the percentage was high, 90.5.

Feasibility study on Nam Mo 1 hydropower

(KPL) The Vietnam's Electricity (EVN) International Joint Stock Company signed a memorandum of understanding on conducting a feasibility study on Nam Mo 1 hydropower project with the government of Laos in Vientiane Capital last week.
The signatories to the document were the Deputy Minister of Planning and Investment, Mr. Thongmy Phommisay, and the Director of the EVN International Joint Stock Company, Mr. Nyuyen Thanh Huan.
The signing ceremony was witnessed by Director General of the Mines� Energy Promotion and Development Department of the Ministry of Energy, Mr. Saypaseuth Phomsoupha, Deputy-Governor of Xiengkhouang province, and representative of both sides.
The Nam Mo 1 hydropower project, worth US$ 105 million, is located in Xiengkhouang province, northern Laos, with a generation capacity of 62 KW.
Under the study of Nam Mo 1 will be an 18-month survey. After completing the construction of this dam, the electricity will be for local consumption and export to Vietnam.

Laos to join the Earth Hour on 27 March

(KPL) Laos will eagerly take part of the upcoming celebration of the Earth Hour on 27 March 2010, to reduce global warming.
The activity is to raise awareness of environment protection to the students and officials in the public and private sectors understanding on safe energy and reduction in the emission of greenhouse gases.
The move was come out at a seminar on safe energy and reduction in the emission of greenhouse gases, which was organised by the Environment Department at the International Cooperation Training Center, Vientiane on 17 March.
Mme. Khempheng Pholsena, Minister to the Prime Minister's Office and the Director General of the Water Resource and Environment Administration said that the seminar on Safe Energy and reduction in the emission of greenhouse gases is a part of activity to mark the upcoming Earth hour at the end of next week-end.
The earth hour is encouraging the public and private sectors to join the campaign of saving energy and reducing global warming, which it caused the climate change, she said.
She added that the first earth hour was taken place in Sydney, on 31 March 2007, approximately 2.2 million people joining the campaign by turning off their lights for the earth hour day. And then the campaign has spread to 370 cities worldwide.
Over 1 billion population in 4, 000 cities in 88 countries worldwide joined the campaign of turning off light for the earth hour day.
Some 92 countries are going to join the campaign of earth hour day this year, in which Laos is the 92nd rank. As we have well known, the climate change is a big problem and affected living things on the planet, particular biodiversity, increased global temperature and drought, the increased number of insects as well as disease epidemic among population worldwide that affects current agriculture production, Mme Khempheng stated further.
Presently, the people worldwide encounter the natural disaster tend to keep severely intensifying, so all international community should join hand in hand to save the world by reducing in the emission of greenhouse gases.
Lao Government pays always attention to the implementation of socio-economic development is based on the sustainable environment protection and sustainable exploration of natural resources.

Nam Theun 2 begins sale of electricity to Thailand

Nam Theun 2, the largest hydroelectricity power plant in Laos, has begun exporting electricity to Thailand, creating a new major source of revenue for the landlocked nation.

The Nam Theun 2 Power Company yesterday announced it had begun the supply of 1,000MW of electricity to the Electricity Generating Authority of Thailand at commercial rates.
Four export production turbines at the 1,088MW power plant in the central province of Khammuan began full generation on Monday, the company said.
The sale of electricity generated by the plant to Electricite du Laos (EDL), a state-owned enterprise, has also begun.

Construction of the US$1.4 billion hydropower plant began in 2005. It was scheduled to begin delivering power to the Lao grid and for export to Thailand in December 2009. However, technical problems caused full operation to be postponed until early this year.
The Nam Theun 2 hydropower plant is considered to be a major source of revenue for the Lao government.

According to a report from the Nam Theun 2 Power Company, the plant is expected to generate average annual revenues of US$80 million for Laos in the form of taxes, royalty fees and dividends over the 25-year life of the concession. Over the period of operation, revenue will amount to more than US$2 billion.

The Lao government has made a firm commitment to spending these earnings on poverty elimination.

Investment in the power plant was made in the build-operate-transfer format, under which the shareholders will operate the facility for 25 years and then transfer it to the Lao government.
The shareholders are Electricité de France (35 percent), the government-owned Lao Holding State Enterprise (25 percent), the Electricity Generating Public Company of Thailand (25 percent), and the Italian-Thai Development Public Company of Thailand (15 percent).

Ministry of Energy and Mines officials say project developers plan to train Lao staff to replace foreign workers in managing the company and power plant. This will enable the government to operate the plant in 25 years' time.

Three other hydropower plants - the Nam Ngum 2 and Nam Lik 1-2 in Vientiane province, and the Nam Nhone plant in Luang Namtha and Bokeo provinces - are expected to start commercial operation this year.

At present, Laos has 10 hydropower plants that are operational. Another 17 plants are in the planning stage and 45 more are undergoing feasibility studies.
The government plans to turn Laos into the “battery of Asean” when the planned hydropower plants come on line in the future.

By Ekaphone Phouthonesy (Latest Update March 18, 2010)
http://www.vientianetimes.org.la/FreeContent/Free_Nam.htm

ADB backs US$20m for transmission line expansion in north

(KPL) Almost 20,000 households in northern provinces will be accessible to electricity when the basic transmission line and power expansion network is installed thanks to the financial support from the Asian Development Bank (ADB).

The US$20million grant aid agreement was signed by the Deputy-Minister of Finance Mme Viengthong Siphandone and the ADB's Lao country Director Mr Gil Hong Kim, at the Ministry of Finance, last Wednesday.

The grant aid is under the sponsorship of the Great Mekong Sub-region-Northern Power Grid Project.

The project will help Laos to install the power transmission facilities in the northern part of the country to enable the export of energy to neighbouring countries.

It was the first time that the ADB helped in the expansion of electricity grid, which about 18,800 households in the north of the country would receive benefits.

Ms Viengthong said that the development of power grid system played an important role in the exercise of the national economic development plan.

The demand for electricity in the northern provinces is increasing rapidly in recent year due to the growth of population and investment in this region, said Ms Viengthong.

The fund would enable the state-owned enterprise Electricite du Laos to install a 115 KV transmission line and build substations and power distribution line, which runs 400 km long via Sayaboury, Phongsaly and Vientiane provinces.

These facilities would ensure sufficient supply of electricity to local people and manufacturing plants and services as well as improve living conditions of local people, particularly in the blowing up of poverty, she said.

The facilities will also help the government to provide electricity in areas that currently import electricity from neighbouring countries.

The project now plans to install the electricity line links to Thailand for sale.

The project would also receive more US$ 37.88milliion low interest loan from the Economic Development Cooperation Fund of the Republic of Korea (EDCF), which is expected to be inked in the near future.

However, this project will also help the government to meet its target of electrifying 70 percent of all households by 2010 and 90 percent by 2020.

Local company invests in dam construction in Borikhamsay

(KPL) A local construction company `Phongsubthavy` will conduct a feasibility study to invest in a new hydropower dam of Nam Nguiep in Mai district, central province of Borikhamsay.

A feasibility study of the construction of Nam Nguiep new hydropower dam, in Somsinh village, will be run for 18 months after signing a Memorandum of Understanding on study of economic and technical analysis and environment impact.

The signing ceremony held in Vientiane Capital, 25 February between Deputy Minister of Planning and Investment Thongmy Phommisay and Director of Phongsubthavy Road and Bridge Construction Company Phongsavath Phengsikeo. If the study completes, the Nam Nguiep hydropower plant with the generation capacity of 200 million kilowatts yearly or equivalent to one fifth of Nam Ngum dam 1 will be constructed.

The dam will be built about 25 metre high and 260 metre long and a 40 megawatts of turbine engine will also equipped with.

The initiative investment cost US$60 million will be the sole investment of Myanmar company.

Electrification in Xiengkhouang

(KPL) Mr. Soumountha Bounleuam, Director of the Electricite du Laos in Xiengkhouang, said that the province recorded 14.000 families in seven districts access to electricity supply. The enterprise will keep on its electrification movement to one more district.

The director made the statement in a meeting to review the past one year activities of the Xiengkhouang branch of the Electricite du Laos. At the meeting, he pointed that he was pleased to hear that local residents in six districts, Paek, Kham, Khoune, Phasay, Phoukoud and Nong-haid, had enjoyed electricity supply.

The director also said that in the near future electricity supply in Xiengkhouang province would cover 50 per cent of the entire households in this province. The target for 2011 was to expand electricity supply to 5.000
families more.

14 households in Angsang access to electricity

(KPL) Fourteen households in Angsang village, Viengsay district, Houaphanh province, have been connected to power grid of a small scaled hydropower plant built in the village.

The construction of the Nam Gnord Small-Scaled Hydropower Project in Ban Angsang started in November last year and was over in a month later. The construction is technically supervised by the Energy and Mining Service of Houaphanh province. The construction costs 48 million kip and has been carried out by local people.

The German Embassy in Laos has financed US dollars 5,000 for the construction. An international organisation has also given US dollars 5,000 and the local people have contributed 4.1 million kip to the construction.

Angsang village has been selected for the implementation of the pilot project on developing a small-scaled hydropower plant in the province as the village is poor and located in remote area.

Khwa and Samphanh residents to enjoy electricity supply in mid-2011

(KPL) The Heuangpaseuth Electricity Construction and Installation Company signed a contract with the Ministry of Energy and Mining to carry out the installation of 22 kV and 0.4 kV transmission line network and transformers in the northernmost province of Phongsaly.
The signing ceremony for the transmission line installation project was held in Vientiane Capital last Friday.
The contract was signed between Director General of the Heuangpaseuth Electricity Construction and Installation Company, Mr. La Khamdy, Deputy Cabinet Head of the Ministry of Energy and Mining, Mr. Chaleun Inthavy, and Deputy Head of the Energy and Mining Service of Phongsaly province, Mr. Pheng Nilavong.
The contractor confirmed that the installation work would be completed in 16 months.
The installation costs 33.7 billion kip, which will be a pre-investment of the contractor.
The installation of the 22-kV power grid stretches 76.2 km from Sinsay village junction in Khwa district to Samphanh district while the 0.4 kV power grid will be 13.4 km long.
Vice-Governor of Phongsaly province, Mr. Pheng Nilavong, said that the electricity consumption rate in this northernmost province was the lowest among all the provinces in the country, accounting for 13 per cent of the total 167,181 households nationwide.
He went on that this project would supply electricity to 1,240 households in 19 villages of Khwa and Samphanh districts. This project is to materialise the Energy and Mining Development Strategy Plan till 2020 as the 7th National Socio-Economic Development Plan (2011-2015).
According to the 7th NSEDP, the amount of electricity consumption nationwide will cover 70 per cent of the entire households nationwide in 2010, 80 per cent in 2015 and 90 per cent in 2020.
In mid-2009, 65 per cent of households countrywide have accessed to permanent electricity supply. To fulfil the plan, this year the �Electricite du Laos� will strive to expand the network of power supply to no less than five per cent of the entire households nationwide

Power grid installation in Viengphoukha

(KPL) An agreement on power grid installation and construction project in Viengphoukha, Luang Namtha province, was signed in the northern province last Thursday, 7 January.
The signatories to the agreement were Director of the Viengphoukha Coal Mining Company, Mr. Nobphone Chaleunphon; Director of the Heuangpaseuth Power Grid Construction Company, Mr. Lakhamdy Heuangpaseuth; Vice-Governor of Luang Namtha province, Mr. Phonesay Chanthasone; and Director of Energy and Mining Service of Luang Namtha Province, Mr. Phanthong Phithoumma. Relevant officials witnessed the signing.
The activities of the project include the installation of a 2,630 km 0.4-kv power grid, the installation of one 100-kwa transformers, three 50-kwa transformers in three villages of Nam Ngeun, Sakon and Laylord, with an investment of 6.9 billion kip (THB 27million) as a grant from the Viengphoukha Coal Mining Company.
The work will take 10 months following the signing day.

Lao Electricity Company gives double whammy punch to lower income Laotians

(KPL) Farmers, workers and government officials were being burdened by the rapid rise in the cost of living in the 2009-2010 fiscal year. To add to their suffering there was a hike in the price of electricity in 2009, but just recently there was an announcement by the Lao Electricity Company that there will be a replacement of 5% turnover tax by a 10% value added tax (VAT) on the electricity bills.
This company said that based on the government�s announcement that the VAT would be operational in Laos from 1 January 2010, it would then cease to impose the five per cent turnover tax on electricity usage by consumers and replace it with the 10 per cent VAT, an increase of five per cent.
The Lao Electricity Company made a declaration on 5 January that this new ruling would enable the Lao government to collect more revenue.
According to officials who wanted to remain anonymous the five per cent hike would have adverse effects on the finances of the lower income group in the Lao society, farmers, workers and officials.
Government officials and the poor asked why it was that the cost of electricity in Laos should trend upwards and become expensive by Lao standard when it was exporting electricity to other countries and was planning to construct quite a few more dams on the tributary rivers of the Mekong River to generate electricity for export to earn more money.
According to the Tax Department, the introduction of the VAT system would enable Laos to enjoy revenue increase by as much as 1.4 per cent. Laos is one of the least developed countries (LDCs) that has introduced the VAT system and in doing so it has joined the ranks of 130 countries in the world to do so.

EICS to increase percentage of Lao people accessing electricity to 70 this year

(KPL) Electricity Installation and Construction State-enterprise (EICS) plans to increase the percentage of Lao population accessing electricity up to 70 by this year�s end and to 90 by 2020.
The company held a meeting on its power grid expansion across the country last week.
Minister of Energy and Mining, Mr. Sulivong Dalavong; Deputy Head of EICE, Mr. Amphone Phommachak, and relevant officials were present at the meeting.
The company has completed surveying on and designing of the nationwide installation of power grid.

Due to our survey there will be the installation of 22-kv power grid in a length of 2,317 km and 0.4 kv power grid in a stretch of 1,388 km and 857 transformers,� Mr. Amphone said last Thursday.
The company has invested 8.8 billion kip in the survey and design of its power grid project.
So far the company has completed the installation of a 22-kv power grid in a length of 2,322 km, a 0.4-kv power grid in a length of 1,388 km and 979 transformers with an investment of 93.6 billion kip.

Kuwait helps Laos in energy development

(KPL) The Kuwaiti Fund has provided Laos with a US$ 25 million low interest loan for the construction of a 115-KV transmission line and power distribution network in the northern provinces of Luang Namtha, Bokeo and Oudomsay.
The project will enable the provinces to import electricity from China to supply a growing population and facilitate business operation and development in the areas. The project, one of the priority projects in the socio-economic development plan of the energy sector, is a plan of the government to eliminate poverty for all people by 2020.
A loan agreement was signed last week in Vientiane between Mr. Somdy Douangdy, Minister of Finance, and Mr. Hesham Ibrahim Alwaqayan, Deputy Director General of the Kuwait Fund for Arab Economic Development. A project agreement was also signed by the Kuwaiti agency and the Electricite du Laos at the same ceremony.
This is the first batch of low-interest loan released by the Kuwaiti Fund to the Lao Government. According to a press release from the Fund, the loan has been made for a term of 24 years, including a grace period of four years, to be amortised in 40 semi-annual installments.
Interest on the loan is 2 percent per annum with 0.5 percent to cover administrative costs and the expenses in implementing the loan agreement.Attending the signing ceremony were Mr. Soulivong Dalavong, Minister of Energy and Mining, Kuwaiti Ambassador to Laos, Mr. Hafeez Hohammed Al Ajmi, and a number of senior officials.

EDL accelerates to clear electricity bad debts for Vientiane

(KPL) The Electricite du Laos (EDL) branch in Vientiane province has
accelerated to clear bad debts of electricity bills amounting to nearly 10 billion kip.
Acting Head of the Electricite du Laos branch in Vientiane province, Mr. Boun-oum Chanthalasy said currently Electricite du Laos�s debtors were government bodies, water pump stations of irrigation facilities, hotels and apartments, general businesses, entertainment sites and industrial factories.
Mr. Boun-oum said that the major debtor was Vientiane Province Administration Office with four billion kip, in which 1.5 billion kip has been unpaid since 2005.
Water pump stations owed over 4.3 billion kip and the rest are hotels and apartments, businesses, entertainment sites and industrial factories in the province.
Last December, the Electricite du Laos and the Finance Service of Vientiane province held a meeting in its efforts to settle the matter.
Electricite du Laos has presented two ways to the provincial finance service by setting up a new account for electricity debt clearance of state bodies in Vientiane province. For the other option, the Vientiane Administration Office was advised to use its provincial budget for clearing the bad debt of electricity bills. However, the two proposals are under consideration.

Thateng to electrify all its villages within 2010

(KPL) The Thateng Energy and Mining Office of Sekong province plans to increase the number of villages accessing electricity supply by 17, meaning that all villages in the district will gain an access to electricity by the end of this year.
�Thirty-eight villages or almost 70 per cent of villages in the district have gained an access to electricity so far,� said Head of the Thateng Energy and Mining Office Mr. Kin
thachack Phommachanh.
Over the last one year, the office has made an effort in the expansion and installation of power grid in 15 target villages across the district and over 90-km 22-kv power grid, 72-km 0.4-kv power line and over 1,100 electricity posts have been installed, according to Mr. Kinthachack.

Electricity supply in Saravane returns to normal

KPL) Electricite du Laos branch in Saravane province has put in about 108 million kip to restore the power grids hit by the tropical typhoon Ketsana.
Presently the staff of Electricite du Laos branch in Saravane province has completed the reinstallation and repair of the transmission line system in five districts of Nakhonpheng, Khong Sedon, Lao-ngam, Samouai and Ta-oi.
The achievements include the reinstallation of nine poles of medium-voltage transmission line and two poles of low-voltage electricity line in Nakhonpheng district, three poles in Khong Sedon district, two poles in Lao-ngam district with reinstallation of electricity line, two poles of medium-voltage in Samouai district and two poles of medium-voltage in Ta-oi district.

115-KV power grid installation project for Phonsavanh and Samneua

(KPL) A ground-breaking ceremony to commence a 115-KV transmission line installation project from Phonsavanh in Xiengkhouang province to Samneua in Houaphanh province was held on 24 December in Houaphanh province.
The installation will be carried out by a Chinese company with an investment of US$30.4 million, which is a loan from the Chinese government released to the Lao PDR. The construction is scheduled to be complete in two years.
The power grid installation from Phonsavanh to Samneua in Houaphanh province will stretch for 200 km.
The project includes the construction of a 115-KV substation at Thongnakhek village, Samneua district of the northeastern Houaphanh province.
Deputy Minister of Energy and Mining, Mr. Soulivong Dalavong; Governor of Houaphanh province, Dr. Phankham Viphavan; Acting Governor of Xiengkhouang province, Mr. Viengthanome Phommachanh, and officials concerned attended the ceremony.