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`.