Laos hydro power development

Hydropower project boosts Lao-Viet relationship

2011-03-11T10:29:00.000-08:00

The Hydropower Xekaman 1 Electricity Project is strengthening cooperation between Laos and Vietnam while providing a boost to the socio-economic development of both countries.

A ceremony to open the ground-breaking project was held on Sunday in Attapeu province, attended by Standing Deputy Prime Minister Somsavat Lengsavad, Deputy Prime Minister of Vietnam Hoang Trung Hai and officials from both sides.

The dam has a generating capacity of 322MW, which totals 1.2 billion KWh a year. The project is funded with US$441 million from the Vietnamese government and is being built by Songda-UCRIN Company of Vietnam.

The hydropower plant, due for completion in 2014, will be handed over to the Lao government after 25 years.

Laos has untapped potential in energy generation which is crucial for the socio-economic development of both countries.

The project serves to increase the friendly relationship between the two governments.

The company has begun building basic infrastructure for the project which already employs 500 workers using 100 vehicles and machines.

To boost cooperation between the two governments, the company and project partners are already preparing to invest in two further hydropower projects.

Laos has a valuable source of natur al energy in its water resources which guarantees the electricity necessary to drive development in the future, said Mr Hoang Trung Hai.

Laos and Vietnam signed an agreement in 1998 to expand energy resources and will continue cooperation until they meet the targets set.

The cooperation benefits the development of both countries, the Vietnamese deputy premier said.

The Hydropower Xekaman 1 Electricty Project is a priority development of the Lao government and was first initiated 20 years ago but faced many difficulties along the way, said Minister of Energy and Mines, Mr Soulivong Daravong.

Families whose homes are situated on the project site will be relocated to ease their poverty and improve their living conditions, he added.

The project will supply 5,000MW of electricity to Vietnam by 2020, he said.

By Khamphone Syvongxay
(Latest Update March 8 , 2011)

http://www.vientianetimes.org.la/FreeContent/Free_Hydropower_project.htm

EDL, Schneider Electric further cooperation

2011-03-05T16:24:00.000-08:00

(KPL) The 'Electricite du Laos' (EDL) and Schneider Electric have fostered cooperation by signing an MOU on human resource development.

The signing ceremony was held on 23 February, at the Lao Plaza Hotel in Vientiane between Mr. Boun-oum Sivanpheng, Deputy Managing Director of EDL, and Mr Nelson Yeap, President of Schneider Electric Thailand.

The main purposes of this cooperation are to create electrical standards including cooperation in order to communicate with consumers to install electrical systems in the buildings to ensure accuracy and safety through knowledge and experience transferred by expert from Schneider Electric.

This year's aim is to enhance knowledge and electrical cooperation with the National University of Laos and the Skill Development Department.

"This year we will have further cooperation on personnel development and standard knowledge on electric installation in Laos between the EDL and Schneider Electric for a year, which the Schneider Electric will train and give more experiences to EDL's electricians for developing their quality work," said Mr Boun-oum.

"Schneider Electric had trained electricians of EDL to upgrade their knowledge and skills like enabling them not only to know the appropriate method of electrical system installation, but to be able to select and use high quality products based on unique requirements by expert from our company, Electricity Authority and Professors from leading universities in Thailand," said Mr. Yeap.

http://www.kplnet.net/english/news/newsrecord/2011/Feb/24.02.2011/edn4.htm

Xiengkhouang: Over 3,200 poorest families to enjoy electricity supply

2011-03-05T16:18:00.000-08:00

(KPL) EDL's rural electrification programme will bring light to more than 3,200 poorest families in the districts of Paek, Phasay, Khoune, Kham and Phoukoud of Xiengkhouang province by this year, said Mr. Soumountha Bounleuan, head of the 'Electricite du Laos' in Xiengkhouang province.

He said that Xiengkhouang province with 8 districts had so far had 238 villages with 23,622 people connected to power grid.

The expansion of the electricity network in this northern province is part of activities to materialise the seventh congress resolution of the Party and a social-economic development plan of the province.

The programme also lies in a poverty reduction plan of the province

http://www.kplnet.net/english/news/newsrecord/2011/Feb/24.02.2011/edn11.htm

Samneua-Viengsay power grid upgrade under way

2011-03-05T16:12:00.000-08:00

(KPL) The Electricite du Laos (EDL) branch in Houaphanh province and Thavisab Construction Maintenance and Installation Company have signed a memorandum of understanding on improving power grid project between Samneua and Viengsay.

The agreement on the project was signed in Houaphanh province on February 17 between Deputy Director of the EDL in Houaphanh, Mr. Savath Phoumlavanh, and Director of the Thavisab Construction and Installation Company, Mr. Vongsanty Phoummanivong.

Witnessing the event were Head of the Energy and Mining Service of Houaphanh province, Mr. Phonevilay Phengdalachanh, and relevant officials.

The development project, estimated at 15 billion kip, will include the installation of 22-KV power grid from Samneua district to Viengsay district, Houaphanh province. The work is expected to start late this month and complete in mid-2011.

http://www.kplnet.net/english/news/newsrecord/2011/Feb/21.02.2011/edn8.htm

Samneau to sunshine by domestic electricity

2011-03-05T16:04:00.000-08:00

(KPL) The power grid installation project for 115 kilovolt of high voltage and 22 kilovolt with a total amount of US$30.4 million linking Phonsavanh district, Xiengkhuang province to Houaphanh province is now 75 per cent to complete.

The project was undertaken by a Chinese company which started end-2009 to install a 170-km long of transmission line and 431 electricity poles.

Presently, the contractor company has already fulfilled in building the base of 389 electricity poles, sub-stations and installation of power grid of 106 km stretch and transformers.

The project framework averaged 75 per cent complete and expected the installation work will complete in May, 2011.

If the project completes, Samnuea district's stronghold of Lao revolution will create more stability and be sufficiency in electricity consumption in the district.

So far, Samneau district has imported electricity from Vietnam. In the future, there will be no more import electricity from neighbouring country, if this project completes.

Samneau district will be a hub of power to supply electricity to other district. Samneau district will build some scale hydropower dam in the future.

http://www.kplnet.net/english/news/newsrecord/2011/Feb/16.02.2011/edn10.htm

Electrification in Houaphanh

2011-03-05T16:02:00.000-08:00

(KPL) Houaphanh on Feb 5 held at Laohoung village, Siengkhor district, a ground-breaking ceremony for the installation and expansion of the medium and low-voltage power grid for 34 villages in three districts of Aid, Siengkhor and Sobbao.

The development is aimed at contributing to the poverty reduction in the province.

The move estimated at 55 billion kip, will benefit over 530 households in Aid, 280 in Sobbao and over 1,000 families in Siengkhor.

The project will include the installation of 112-km long 35 KV power line, and nearly 50-Km long 0.4 KV power cable, and 34 transformers along the power grid.

The Lao Government plans to increase the percentage of electricity use to 70% of the entire population by 2015 and 90% by 2020.

Attending the Saturday's ground-breaking ceremony were Vice-Governor of Houaphanh province Mr. Chanseng Phimmavong, relevant officials from the Ministry of Energy and Mining, authorities of Siengkhor, Aid and Sobbao districts and local people.

http://www.kplnet.net/english/news/newsrecord/2011/Feb/09.02.2011/edn11.htm

EDL opens one more customer service

2011-03-05T15:59:00.000-08:00

(KPL) The Electricite du Laos (EDL) on Monday, Feb 7 opened its new customer service at Meuangva Thong village, Sikhottabong district, Vientiane Capital, to improve its service.

The EDL office in Vientiane Capital has decided to build the customer service after learning that customers found it difficult to pay electricity bills in the four inner districts of the Capital as it is difficult to find parking lot, according to Mr. Soukhon Chanthone, EDL deputy-director of Vientiane Capital office.

With the newly built facility, the EDL has four customer services. Two are at Sisaketh and Phontong villages of Chanthaboury district; one at Sokpaluang village, Sisattanark district; and another one at Meuangva Thong village, Sikhottabong district.

http://www.kplnet.net/english/news/newsrecord/2011/Feb/08.02.2011/edn6.htm

PM receives NTPC high-ranking delegation

2011-03-05T15:45:00.000-08:00

(KPL) Mr. Thongsing Thammavong, Prime Minister of the Lao PDR, received at his office on Saturday a courtesy visit of Mr. Jean Pierre Katz, Chief Executive Officer of Nam Theun 2 Power Company (NTPC).

At the talks, PM Thongsing Thammavong praised and highly valued the visit to Laos of Mr. Jean Pierre Katz as a big contribution to further strengthening the friendly relation and co-operation between Laos and the NTPC and hoped that it will further contribute to the social-economic development in Laos.

NTPC is the company formed by the Lao Government and the private shareholders in the Nam Theun 2 Hydroelectric Project to build and operate the Project for the first 25 years of its operation.

NTPC is dedicated to running a world class hydropower facility and to improving the living conditions of people in the areas around the Project.

http://www.kplnet.net/english/news/newsrecord/2011/Jan/24.01.2011/edn1.htm

Namtha 3 Hydropower Plant to turn on turbine in mid-2011

2011-01-25T21:18:00.003-08:00

(KPL) The Namtha 3 Hydropower Plant in Namtha district, Luang Namtha province, is expected to begin its power generation in mid-2011.

A tariff memorandum of understanding of the hydropower project was signed in Vientiane Capital on December 28.

The signatories of the agreement were Deputy Director of Electricite du Laos Savarth Phoumlavanh and Director of DPS Bridge and Road Construction Company Kaypheth Douangpaseuth.

The signing ceremony was witnessed by Director of Electricite du Laos Khammany Inthilath and relevant officials of both sides.

With an installation capacity of 1.25 MW, the plant is estimated to generate six gigawatt-hours per year and sell the power to the Electricite du Laos.

Ratchaburi Holding buys EDL-Gen's 81.11 million shares

2011-01-25T21:18:00.001-08:00

(KPL) Ratchaburi Electricity Generation Holding Public Company Limited, Thailand, bought 81.11 million shares of the Electricite du Laos-Generation Public Company (EDL-Gen) on the Lao Securities Exchange (LSX) in Vientiane on 11 January.

Mr. Noppol Milinthanggoon, President of the Ratchaburi Holding, said that the transaction was valued at USD43.37 million and made through its two subsidiaries, Ratch-Lao Services Company Limited, located in Vientiane, and RH International ( Singapore) Corporation Pte, based in Singapore.

Mr. Noppol said that this investment would not only drive the growth to the company, it also reinforces our commitment to long-term investment and confidence in the economic potential of Laos.

He said the company has already invested over 70 million baht in the Lao power sector. Our existing projects include four power plants. The Nam Ngum II hydropower station has a generation capacity of 615 MW and is expected to export electricity this year. The Nam Ngum III hydropower station will have a generation capacity of 440 MW, which is expected to export electricity in 2017. With an investment US$ 3,700 million, the coal-fired Hongsa power plant in Sayaboury province, northwestern Laos, has a generation capacity of 1,878 MW, and is expected to export electricity in 2017, and the Hongsa lignite mining project.

Upon completion, the Se Pien-Se Nam Noi dam in Champassak and Attapeu provinces, southern Laos, will have a generation capacity of 390 MW and is expected to export electricity in late 2017. Most of the electricity output will be exported to Thailand, said Mr. Noppol.

In addition, the company has established RATCH-LAO Service Company Limited to run operation and maintenance business for the power plants in the Lao PDR.

He added the subscription for EDL-Gen's shares was another step for increasing our presence in the Lao power industry as well as supporting the Government of the Lao PDR in developing the country's capital market and economy.

The Ratchaburi Holding, represented by RATCH-LAO Service and RH International ( Singapore) Corporation together, has held a 9.34% equity stake in EDL-Gen. The 56.112 million IPO's share of EDL-Gen was allocated to RATCH-LAO Service, while 25 million shares went to RH International ( Singapore) Corporation, Mr. Noppol said.

The company is very confident that EDL-Gen's management will be able to continue its growth and consistently generate significant benefits for its shareholders and other stakeholders.

The EDL-Generation shares rose from 4,300 kip per unit to 4,700 kip, while the BCEL share price rose from the average IPO price of 5,500kip to 8,000 kip on the first day of trading on the LSX.

Nam Theun 2 reaches project milestone

2011-01-25T21:17:00.001-08:00

(KPL) The Lao government has signalled that the Nam Theun 2 Multi-Purpose Project has met its contractual obligations to date, as defined in the concession agreement between the government and the Nam Theun 2 Power Company (NTPC).

The NTPC, owner and operator of the project, on November 5 2010 submitted to the government and its advisors a certificate listing the completion or partial completion of almost 140 requirements that the company is bound to fulfil. On December 3, the government gave its non-objection to the issue of this certificate.

The project requirements, mainly concerning environmental and social commitments and also design and performance standards, are detailed in the concession agreement signed in 2002. Around 50 of the requirements are accepted as complete, while those partially completed are acknowledged to be under implementation and ongoing. Examples include income improvements for resettled villagers, which are being achieved through an eight-year livelihoods support programme.

The project Dam Safety Review Panel (DSRP), comprised of international hydropower experts, has been monitoring the construction and operation of the industrial side of the project for the past five years, and on November 8 signalled acceptance that the Nam Theun 2 meets the requirements expected under international standards and under the concession agreement.

The International Environmental and Social Panel of Experts, or POE, has also signed its non-objection to the certificate, following detailed inspection of the project�s wide-ranging development and environmental protection programmes. The POE members, who have been monitoring the Nam Theun 2 Project for over 15 years, have stated that while the long-term social and environmental commitments of the NTPC are still a work in progress, the project is largely on track. The Lao government's non-objection, given following consultation with the POE and DSRP, was issued by the Ministry of Energy and Mining. The minister, H.E. Soulivong Daravong, said that the scope of the Nam Theun 2 was unprecedented, and that the NTPC and its partners had done a remarkable job to bring such a broad range of social improvements and environmental safeguards to an advanced stage in a relatively short time. According to Jean-Pierre Katz, the NTPC Chief Executive Officer, the job cannot be regarded as complete. "We must emphasise our continued responsibility to the people living around the project area and to the Lao government," said Mr Katz.

He explained that while people resettled by the project are currently enjoying greatly increased incomes, the NTPC will continue to work with village, district, provincial and national partners to ensure that this improvement is sustainable. The project must also prepare for the time when local people and authorities will continue the social and environmental work, so that residents of the Nam Theun 2 areas can benefit fully from the project.

The NTPC has provided reassurance to the government and the POE that we remain fully committed to the environmental and social goals of this multi-purpose investment, said Mr Katz. "We need to complete work that is only partially finished in certain areas, and must retain our focus and our financial and human resource commitments until the project targets, as defined by the concession agreement, are reached".

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

2010-10-30T03:15:00.000-07:00

(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

2010-10-30T03:11:00.000-07:00

(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

2010-10-30T03:09:00.000-07:00

(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

2010-10-30T03:05:00.000-07:00

(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

2010-09-14T23:07:00.000-07:00

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

2010-08-01T03:07:00.000-07:00

(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

2010-08-01T03:04:00.000-07:00

(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

2010-08-01T03:00:00.000-07:00

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

2010-08-01T02:58:00.000-07:00

(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

2010-07-11T01:00:00.000-07:00

(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

2010-04-02T04:36:00.000-07:00

(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

2010-04-02T04:33:00.000-07:00

(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

2010-04-02T04:14:00.000-07:00

(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

2010-03-29T19:24:00.000-07:00

(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

2010-03-26T04:23:00.000-07:00

(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

2010-03-18T05:03:00.000-07:00

(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

2010-03-18T04:44:00.000-07:00

(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

2010-03-18T03:36:00.000-07:00

(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

2010-03-18T03:30:00.000-07:00

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

2010-03-03T03:50:00.001-08:00

(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

2010-03-03T03:47:00.000-08:00

(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

2010-02-22T03:10:00.000-08:00

(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

2010-02-22T02:16:00.000-08:00

(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

2010-01-22T00:56:00.000-08:00

(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

2010-01-22T00:44:00.000-08:00

(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

2010-01-22T00:38:00.000-08:00

(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

2010-01-22T00:32:00.000-08:00

(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

2010-01-22T00:21:00.000-08:00

(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

2010-01-22T00:19:00.000-08:00

(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

2010-01-21T23:51:00.000-08:00

(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

2010-01-21T23:46:00.000-08:00

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

2010-01-21T23:39:00.000-08:00

(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.

Champassak: 101 villages to have small scale hydropower plants

2009-12-24T03:22:00.001-08:00

(KPL) 101 villages in two districts Soukhoumma and Bachieng Chaleunsouk in Champasak province have reportedly an access to electricity generated by small scale hydropower plants.
The Poverty Reduction Fund (PRF) held a meeting early this month in the southernmost province to discuss the construction of small scale hydropower plants on streams and rivers in the two districts.
The construction of small scale hydropower plants is among efforts of the Poverty Reduction Fund to improve living condition of the poor in target areas by promoting basic infrastructure development and vocational training.

Government goes ahead Hongsa lignite power plant

2009-12-04T07:57:00.000-08:00

(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.

23 villages in Mork district to get wired next year

2009-11-16T02:43:00.000-08:00

(KPL) Twenty-three villages in Mork district, Xiengkhouang province, are expected to have an access to electricity in April 2010. The Electricity du Laos signed an agreement on such development project with the Lao Electricity Installation and Construction State Enterprise last week. The signatories to the agreement were Director of the Electricity du Laos, Mr.Khammany Inthirath, and Director of the Lao Electricity Construction and Installation State Enterprise, Mr. Amphone Phommachanh.

Mork is a remote district in Xiengkhouang province. As it is located very far away from the heart of the province people in the district find themselves facing difficulties in access to basic infrastructure such as electricity, said Mr. Amphone. He added that the power grid the company would have installed and constructed for the 23 villages in Mork district would be fundamental to helping other northern provinces get access to more electricity in the future.

Electricity visits three villages in Phouvong district

2009-11-03T01:25:00.000-08:00

(KPL) Three villages Numkong, Vingxay Phouvong and Vonglakhone in Phouvong district, Attapeu province, have been connected to electricity. The Lao Telecom has spent 1.46 billion kip to install the power grid for the villages which totally house over 365 families.
The installation began in July and was over in September this year.
The handover of the newly installed power grid was held at Attapeu Palate Hotel on October 22 with the presence of Mr. Thansamai Kommasit, Director of Lao Telecom; Mr. Amphone Phommachan, Director of Construction State-enterprise; Mr. Synai Mienlavanh, Governor of Attapeu province and also Governor of Phouvong district and local authorities.
The Lao Telecom also provided 50 million kip to the victims of the flood and Ketsana typhoon in Phouvong district and the Construction State-enterprise provided five tones of rice amounting at 19.5 million kip to the victims.

Government invests 33 billion kip in electrification in Luang Namtha

2009-11-03T01:16:00.000-08:00

(KPL) The government has invested 33 billion kip in the installation of electricity network from the municipality of Luang Numtha to Viengphouka district in a bid to reduce poverty in the
area.
A contract for installing the electricity network was signed in Luang Namtha province last week.
The signatories to the document were representatives of the Energy and Mining Service of Luang Namtha province and the Luang Prabang Electricity Network Construction and Transmission Installation Company.
Taking part in the event were Mr. Phimmasone Leuangkhamma, Luang Namtha Governor and Mr. Somboun Lasasombath, Deputy Minister of Energy and Mining.
The investment would be spent on the installation of 22-Kilovolt and 0.4-Kilovolt transmission line, which will take 12 months.

Namor sub-station to supply power for northern Laos

2009-11-02T09:24:00.000-08:00

(KPL) Northern provinces will soon use electricity from a 115-kv Namor sub-station in Namor district, Oudomsay province.
The construction of the Namor sub-station and the installation of a 35-km long power grid from Boten in Luang Namtha province, are being carried out with a loan of 6 million US dollars from the Chinese government. The installation is being implemented by the Yunnan Electricity Company.
The Lao government has agreed to buy electricity from China for northern provinces Luang Prabang, Oudomsay, Luang Namtha, Bokeo and Phongsaly. The imported power from China will be supplied by the Namor sub-station.
Both the construction of the Namoh sub-station and the power grid is expected to be completed before the 25th SEA Games, which will be hosted in Vientiane on December 9-18, 2009.
The contractor has already completed 82 per cent of the power grid installation, meanwhile the construction of the Namor sub-station is completed by 27 per cent, said director of the Oudomsay Electricity Company, Mr. Khamlak Inthilath, on Tuesday.

Bioenergy and Renewable Energy needed for Rural Development and Poverty Reduction in Laos

2009-10-01T20:43:00.000-07:00

(KPL) More than 80 per cent of the population of Lao PDR lives in rural areas, with the vast majority relying on traditional fuel wood for lighting, cooking and heating.
It is a fact often overlooked, but access to efficient, reliable, and clean energy services is a basic requirement for social and economic development. Many emerging small-scale bioenergy and renewable energy technologies aim to make effective use of the biomass materials available to rural communities. Hence, it displaces the need for traditional wood fuel utilisation. These technologies may also bring additional environmental and health benefits and some have already been adapted by local communities and businesses operating in Lao PDR. However, delivering these energy technologies on a large scale, in a way that will benefit the vast majority of Lao people living in rural areas, still presents a significant challenge.
The Food and Agriculture Organisation (FAO), SNV Netherland Development Organisation (SNV) and the Lao Institute for Renewable Energy (LIRE) have joined with the Lao Government's Ministry of Energy and Mines (MEM) to address this challenge and look for ways to deliver more modern bioenergy and renewable energy technologies for the benefit of rural communities in Lao PDR. To be effective in this task, these organisations would first like to consult and engage knowledgeable and motivated, locally based experts to chart a path forward. As a result, representatives from FAO, SNV, LIRE, MEM and other Lao-based rural energy and development experts will organise a one-day meeting on 1st of October 2009, at Lao Plaza Hotel, to develop a concrete plan of action to enhance and expand the delivery of efficient, reliable and clean bioenergy and renewable energy technologies in Lao PDR for the benefit of rural communities and the rural poor.
The anticipated outcomes from the meeting will be:The establishment of priority areas for action to improve delivery of bioenergy and renewable energy technologies for the benefit of rural communities and the rural poor and;
The plan of action to address priority areas including clearly defined activities that can be adopted by meeting partners and other public and private organizations
The common understanding of challenges and opportunities associated with providing efficient, reliable and clean bioenergy and renewable energy technologies to rural communities in Lao PDR.

PM Bouasone Bouphavanh visits Nam Mang III hydropower plant

2009-09-16T20:16:00.000-07:00

(KPL) Prime Minister Bouasone Bouphavanh has recently visited the Nam Mang III hydropower plant and irrigation scheme in Thourakhom district, Vientiane province, where he was received by provincial Party Secretary Chansy Phosikham, and local officials, veterans and people.
PM Bouasone was told by the provincial agriculture and forestry service head about the Nam Mang III irrigation project which was divided into three phases of construction.
Nam Mang III is located on the plateau of Phoukhao Khwai, some 60km north of Vientiane Capital. The hydropower plant has an installation capacity of 40 megawatts and started operation in 2005. The plant is an efficient project because it provides both energy generation for export and local supply and also irrigates nearby farmland.
The irrigation system is particularly efficient because it can supply water to farmers without the use of pumps.
On this occasion, PM advised the two sectors to study and prepare a plan for agricultural development in the area.
Nam Mang III is financed by the Lao government, partly with the assistance of the Chinese government through the EXIM Bank of China. The project started in 2002 at the cost of more than 537 billion kip (US$ 63 million).

Nam Theun 2 delivers first local electricity

2009-08-12T23:18:00.000-07:00

The Nam Theun 2 Hydroelectric Project has made its first delivery of electricity for domestic use in Laos .

According to a press release from the Nam Theun 2 Power Company (NTPC), the project began delivering electricity for domestic use on August 6, 2009, when the first of two Pelton Unit turbines was successfully synchronised with the local substations of Electricité du Laos (EDL).

Engineers from the project and EDL watched the turbine produce 2 megawatts (MW) of power during the first test.

The electricity was transmitted to the EDL substation at Mahaxay and then on for consumption by local customers in Khammuan province. Further tests were conducted the following day, with delivery rising to full power.

The Nam Theun 2 Power Station houses two Pelton Units, each able to deliver 42 MW when running at full power output. The project operator, the NTPC, will supply 300 gigawatt hours of electricity per annum to EDL from next year.

This accounts for 5 percent of the project's output, with the remaining 95 percent to be exported to Thailand via a separate generation and delivery system.

According to the Director of EDL's Transmission and Substation Department Mr Khene Thepvongsa, this power is very important for Laos and for people in the project area.

“When the two Nam Theun 2 Pelton generators are available for full power delivery, Khammuan province will be able to stop importing electricity from Thailand ,” said Mr Khene.

The province currently imports 55-60 MW from across the Mekong .

Mr Khene said the team of EDL engineers were happy to be on hand to see the first domestic power come from Nam Theun 2. “The NT2 engineers were able to smooth some initial problems on the test and then proved to us that the unit can run at full capacity” he said.

EDL purchased this test energy from NTPC at a special low rate and hopes to start buying electricity regularly from September.

The second Pelton generating unit at the NT2 Power Station is expected to come on line in November 2009.

NTPC successfully tested its first export of power to Thailand in June.

NT2 is located in Khammuan province. The 1,070 MW project is the biggest power project in Laos and will generate around US$2 billion of revenue for the country during its first 25 years of operation. According to Nam Theun 2's website, construction began in the middle of 2005.

By Times Reporters
(Latest Update August 11, 2009)

Savannakhet residents access to electricity

2009-07-31T01:55:00.000-07:00

(KPL) More than 200 households in Songkhon district, Savannakhet province have accessed to permanent electricity.
They live in five villages of Ban Nonekhamsong, Ban Khanthayath, Ban Nongphue, Ban Nongkong and Ban Noneborkeo.
The expansion of electricity network access to these villages, conducted by Electricite du Laos branch of Savannakhet province, commenced in 2007 and completed in recently this month.
The expansion work is over 1.7 billion kip in which 80 percent was granted Norath (International donor organization) and the rest was the World Bank.
Last week the Electricite du Laos branch of Savannakhet province held an official opening ceremony of electricity in these villages that draw a lot of senior officials in the province.

Laos plans to become battery of ASEAN by 2020

2009-07-02T19:06:00.000-07:00

(KPL) Laos has a plan to transform itself to become the battery of ASEAN by 2020 and so rid itself of the status of least developed country.
"According to a government estimate it would be selling 7,000 megawatts of hydroelectric power to Thailand by 2015 and 5,000 megawatts to Vietnam by 2020", said Mr Saypaseuth Phopsoupha, Director of Energy Promotion and Development of the Ministry of Energy and Mines.
"The purpose of the production and sale of such a high volume of electricity is to earn millions of US dollars and put them into the coffer of the country," added Mr Saypaseuth.
He also said that the electricity would come from a slew of hydropower dams nationwide, like Nam Thuen 2,
This plan was reviewed at an annual meeting of Ministry of Energy and Mines in Luang Prabang province, last week.
Mr Saypaseuth said that if all the hydropower electricity development projects of the government came on stream and on schedule, the revenue they would generate would get the country out of the least developed country status by 2020.
Many hydropower projects were under the construction and feasibility studies were carried out on quite a few, such as Nam Ngum 2, Nam Lik 1-2 and Sekaman 3.
"Nam Thuen 2 is a good pilot project and it would come on stream at the end of the year," Mr Saypaseuth confirmed.
The Nam Lik 1-2 and Sekaman 3 hydropower construction projects would commence to generate electricity by 2010 and Nam Ngum 2 would be operational by 2011.

99.8 per cent of households in Vientiane access to electricity

2009-06-22T03:59:00.000-07:00

(KPL) Over 120,000 households in 500 villages entire Vientiane Capital has been accessible to electricity.
While over 190 households are reported to be used solar cell, according to a report of Vientiane Energy and Mining Division.
Currently the installation of transmission lines work in Vientiane Capital was almost achieved. It counted for 99.8 per cent of households in Vientiane accessed to permanent electricity.
Only Vangma village in Sangthong district was staying in dark which the Energy and Mining Division confirmed that the transmission lines work to this area would be achieved by at the end of this year.
This work is one out of many development activities is strongly contributing to socio-economic development and poverty reduction programme.

Householders to pay more for electricity from 2009 to 2015

2009-05-24T07:22:00.000-07:00

(KPL) Householders would be paying more money for domestic electrical consumption as the main electricity company, Electricite du Lao declared a 15 per cent increase for household electricity in 2009.
According to a tariff study report that was made public at a workshop on 19 May, the increase would be implemented some time this year.
The report further stated that the there would be a gradual annual increase in the price of electricity so that by the year 2015 it would hit the maximum price of 25 per cent.
EDL report said that the price increase would be adjusted to the cost of production, capital expenditure and distribution.
This report also argued that there is a need for price increases at different price levels for this year and the next two years: 10 percent for 2009, 17.3 per cent in 2010 and 16.4 percent in 2011.
Deputy Minister of Energy and Mines Mr Somboun Rasombath said that the rationale for higher electricity charges is closely related to the social and economic growth of Laos.
The EDL, he added, the provider of sustainable electricity service to the users gets cash from them, which would be channeled to the development of electrical infrastructure and to the building of networks to give electricity to rural areas.
He projected that the average annual rate of increase in the usage of electricity would be as high as 19.5 per cent till 2016 and this situation is exacerbated by high electrical demand in the industrial and mining sectors
The price increase for these two sectors, he said, would be six per cent in 2009, 15 per cent for 2010 and 10 per cent for the next two years, 2011 and 2012.
Regarding this year's increase, Mr Somboun said that an announcement would be made at the end of this year.

Vice President calls for environment preservation in Nam Theun II

2009-03-25T00:02:00.000-07:00

(KPL) Vice President Bounnhang Vorachit called for the executive board of Nam Theun II Hydropower Project to pay attention on environmental preservation and develop Nam Theun area as a new tourist site.
He also advised on creating an effective socio-economic development plan so as to help local people who were removed to resettlement area having permanent jobs and assuring local people living in this area to live above poverty line.
The construction of roads to facilitate in this area is also important thing that it should also be paid attention, he said.
Vice President Bounnhang gave an advice when he visited the Nam Theun II Hydropower Project in Nakai district, Khammouane province last week.
Vice Premier wand Minister of Foreign Affairs, Dr. Thongloun Sisoulith and high-ranking officials also joined the visit.
During the visit, Nam Theun II Hydropower Project advisor, Mr Loy Chansavath briefed the VIPs on this project's contribution to the economic development of Laos once it is fully operational and he confirmed that the construction of Nam Theun II Hydropower project would complete on schedule.

Russia to help Laos build three hydropower plants

2009-03-21T01:39:00.000-07:00

(KPL) Russia will help Laos build three hydropower plants in the south of the country to supply domestic demand and exports.

Currently, the Region Oil Company of Russia is working on documents to sign with the Lao government and developers, Xinhua news agency quoted the Laos' English-language daily as saying.The documents include a shareholder agreement, a project financing scheme, power purchase agreements (PPA), an operation and maintenance agreement, and concession agreement for the projects of three hydropower plants, namely Nam Kong 1 in Attapeu province, Xekong 4 and 5 in Xekong province.

The company has carried out all necessary surveys and prepared drawings with approval from the Lao Ministry of Public Works and Transport.The selection of contractors to carry out construction of the projects is also in process, said the Russian company Deputy General Director Vasily Morgun.The three hydropower plants are estimated to cost more than 17. 1 trillion kip (about two billion USD) and have an installation capacity of 1,200 megawatts. They are expected to start operation in 2014, 2015, and 2016, respectively.

Laos, Thailand to boost power and energy cooperation

2009-03-13T20:25:00.000-07:00

(KPL) Laos and Thailand have agreed to continued cooperation in power and energy affairs, although some projects need revision, according to acting Thai Government Spokesman Panithan Wattanayakorn.
Thailand News Agency quoted the spokesman as saying that the policy regarding power and energy affairs was discussed between Thai Prime Minister Abhisit Vejjajiva and Lao Deputy Prime Minister Somsavat Lengsavad, with both parties sharing the view that cooperation should continue, and expand.
Currently five projects are covered by agreements, he said, including the purchase and sale of electrical power from hydroelectric power stations at dams in Laos will be revised as some contracts are due to expire, and others will be unchanged.
The spokesman added that construction and labour costs, as well as the demand for power, had changed along with changing global economic conditions, making it necessary for the governments of both countries to review the terms and conditions of contracts thoroughly before the contracts are renewed.It is expected the terms of the project revisions would be completed before the Lao prime minister officially visits Thailand in May, he said./.

Savannakhet gives green light to Vietnamese company in dam construction

2009-03-03T00:03:00.000-08:00

(KPL) Savannakhet province gave green light to Vietnamese Song Da United Company, to conduct a feasibility study of Sebang Hieng 1 and 2 hydropower dams construction in Savannakhet province with total investment of US$151 million.
According to a signing ceremony of MoU last Wednesday, between Savannakhet Deputy Governor, Dr Souphan Keomisay and Deputy General Manager of Vietnamese Song Da Company Mr Le Van Ton.
Sebang Hieng 1 hydropower dam is located in Sonnaboury and Thapangthong districts and Sebang Hieng 2 is situated in Phin district.
Mr Le Van Ton said that the Sebang Hieng 1 hydropower construction dam worth US$75 million and Sebang Hieng 2 hydropower construction dam was US$75 million.
He added that the Sebang Hieng 1 hydropower plant would have the generation capacity of 50 megawatts and Sebang Hieng 2 would have generation capacity of 52 megawatts
per year

Widespread power cut leaves people in the dark

2009-02-25T08:22:00.000-08:00

The Vientiane Electricity Department yesterday asked people and businesses to conserve electricity, following two major power cuts this week.

The department's Deputy Director, Mr Somphone Thammavongsay, said everyone must make a greater effort to use less electricity. He cited garment factories and irrigation pumps as especially large consumers of electricity in the wake of the power cuts.

The power cuts were the result of a grid overload, but occurred for two quite unrelated reasons on the nights of February 22 and 23, Mr Somphone said.

The outage affected not only a large area of the capital but three provinces using power generated by the Nam Ngum 1 dam - Vientiane , Luang Prabang and Xieng Khuang.

The 10-20 minute power outage on the evening of February 22 is believed to have been caused by generator failure at the Nam Ngum 1 dam.

Mr Somphone said one of the five generators was undergoing routine maintenance and was not generating power.

Maintenance procedures began in February and are set to be completed in August, he said.

But this alone was not sufficient to cause the sharp reduction in power supply. On February 22 at 18.50 pm two of the remaining four generators at the dam failed. Initial investigations found this may have been due to an automated system lock function that was activated, according to Mr Somphone.

The two generators were repaired in 20 minutes, restoring operation to four of the plant's five generators, sufficient to meet consumer demand.

Electricity department officials said an outage caused by a source supply issue on this scale had not occurred for 20 years. Most power cuts are localised and do not involve such fundamental failures in source supply.

In the second outage the following evening, on February 23 at 19.22 pm, the same three provinces and the capital were again left in the dark for almost 30 minutes. On this occasion a damaged electricity cable in Thailand 's Oudon Thani province was the cause.

Mr Somphone said the Lao grid partly relied on power from Thailand to sustain supply.

“When necessary we also use electricity from Thailand , but unfortunately the electrical cables in Oudon Thani province failed to deliver power on this occasion,” he said.

This was an unprecedented and unfortunate event, the department said. They have been assured by their Thai counterparts the damaged cable has been fixed.

The Lao electricity grid links to the Thai grid to stabilise power supply in both countries. When consumption in Vientiane exceeds supply capacity in Laos , electricity from Thailand is automatically diverted to Laos . Laos typically buys electricity from Thailand in the dry season and supplies electricity to Thailand in the wet season, when domestic demand declines.

Mr Somphone said power-hungry factories should cut production from 6 to 9 pm because demand for electricity by households was at its peak during these hours.
The extent to which demand contributed to the supply problems, the overload, and the widespread power outage is unclear.

By Souknilundon Southivongnorath
(Latest Update February 26, 2009)

Russians are coming to invest in Sekong province

2009-02-22T18:57:00.000-08:00

(KPL) Russian investors are coming to Sekong province and some of them are targeting two sectors, energy and mining.
Provincial Governor, Dr Khamphanh Phommathat warmly welcomed the Russian ambassador to Laos, Mr Vladimmir Plotnikov and his entourage when they visited Sekong province on 3 February.
The ambassador said that his country is supportive of Russian investors to this province, especially in energy and mining.
In 2008 Russia invested in a hydropower project, Sekong 4, with a capacity of 600 MW and another such project of Sekong 5.
Dr Khamphanh said that Russia’s investment would support and strengthen the relationship between Laos and Russia and create jobs for the local people

New hydropower plant to build at Thad Saland of Sepone district

2009-02-12T01:45:00.000-08:00

(KPL) The government of the Lao PDR has agreed recently to allow the Thai Hydropower Construction Company to build the new hydropower plant at Thad-Saland waterfall in Sepone district, Savannakhet province.The signing ceremony for the project was held in Vientiane on 3 February between Mr. Thongmy Phomvisay, Deputy Minister of Planning and Investment and Ms. Ounada Pheutrinarakone, President of the Thai Hydropower Construction Company. Acting Minister of Energy and Mining and senior official from Thai Embassy were also attended at signing ceremony.
The Thad-Saland Hydropower Construction Project at Sepone district is 100% investment project of Thai businessmen with the total investment of 225 million bath. The 30 years concession project with 3.2 megawatts will take two years for construction.
After completion in 2011, the project will provide electricity current not only for the general people but also for the projects in the Sepone and nearby districts.

Se Set II power plant to supply electricity to five southern provinces

2009-01-25T22:56:00.000-08:00

(KPL) Saravan province will cease to buy electricity from Thailand in 2009. With the completion of the construction of Se Set II hydropower plant in Saravan province in June 2009 this plant would have the capacity to supply electricity to all the consumers of this state.
On its completion this plant should be able to generate 76 MW and produce 309 GWH of electrical power per year, more than the Se Set I hydropower plant’s capacity of 31 MW.
When the plant is fully operational it will be able to cope with the entire power demand of Saravan province and the other southern provinces, Attapeu, Champasak, Xekong, and Savannakhet.
However, eight districts in Saravan province and more than half of the 926 villages of the state will receive electricity from Electricite du Laos.

Vietnam to build hydropower plants in northern Laos

2009-01-06T03:12:00.000-08:00

(KPL) Vietnam will build three hydropower plants on the Aed River in a northern province Huaphan.
The plants will have a combined generation capacity of 420 MW.
A Memorandum of Understanding on the hydropower development was signed by the Deputy Minister of Planning and Investment, Mr. Thongmy Phomvisay, and Director General of EVN International Joint Stock Company, Mr. Nguyen Thanh Huan, in Vientiane last Wednesday.
The signing was witnessed by Deputy Minister of Energy and Mines, Dr. Somboune Rasasombath, and the
Charge d'Affaires and Economic Attache of the Vietnamese Embassy to Laos, Mr. Luong Coc Huy and Mr. Doan Tho Nam, respectively, as well as relevant officials of both sides.

New Minister of Energy and Mining appointed

2008-12-09T22:57:00.000-08:00

(KPL) Mr Soulivong Daravong, former Minister of Planning and Investment was appointed as new Minister of Energy and Mines.

The official ceremony was took place at the Ministry of Energy and Mines last Friday with the witness of Prime Minister Bouasone Bouphavanh and other high-ranking officials. PM Bouasone highlighted the complicated and challenges of energy and mines sectors which is a significant part to put national economy upward.

The main duty of the ministry till to 2010 is to attract foreign investment in the construction of about 6-8 small-scale hydropower dam with the ambition to generate 3,000 megawatts, said PM Bouasone.

In addition to the expansion of electricity network from north to south covered by 70 percent of total area nationwide.

The Ministry of Energy and Mines should cooperate with the investors in the survey of mining as the basic information to serve the bid or the property for compromising loan for infrastructure construction, he advised.

Electricity law needs to be amended to comply with economic growth

2008-11-30T23:01:00.000-08:00

(KPL) The draft law on electricity needs to be amended to support the market-oriented mechanism and the electricity expansion, said Acting Minister of Energy and Mining Somboun Rassombath.
This was an explanation of Mr Somboun when he attended the fourth day of National Assembly Session of sixth legislative on 27 November.
The old version of the law on electricity, enforced in 1997, consisted of 12 chapters, 56 articles, considering as an important tool for public administration, electricity business development in Laos and was attractable investments from local and foreign investors. This law was a great contribution to the poverty reduction.
Presently, the socio-economic development has developed and market-oriented mechanism has also moved forward, particularly the electricity production activities. In order to support the development and expansion of infrastructure as well as economy in the new era, it needs to amend the electricity law to comply to realistic conditions with the national economic growth and international law in the region, he added.
Mr Somboun proposed the amended draft of law and arrangement regarding to charter, articles and content, and other term to be appropriated or not?.
In 1995, the number of the nationwide total household access to electricity amounted to only 30 percent (200 megawatts) now the number increases to 60 percent.

New hydropower plant set for southern Laos

2008-11-19T23:42:00.000-08:00

(KPL) A consortium of foreign companies will proceed with a hydropower plant on the fringe between Champassak and Attapeu provinces, following a two-year feasibility study.
The SK Engineering and Construction, Korea Western Power and Ratchaburi Electricity Generation Holding signed an agreement with the Ministry of Planning and Investment last week to develop the Xe Pien-Xe Namnoi hydropower plant project.
Under the agreement, the companies will spend another 18 months designing the plant, selecting an exact location and assessing the social and environmental impacts of the project.
The Lao government has established a committee to assess the project and decide whether to grant a concession agreement which would allow investors to begin the construction of the power plant, it said.
The power plant will have a generation capacity of 390 MW and will be able to produce about 1.776 Gwh annually. The project is expected to cost about 500 million USD.
If the project proceeds, the Lao government will hold a 24 percent share in the project and will take over the full ownership on the plant after 25 years.

Power pact to receive assistance

2008-11-17T02:35:00.000-08:00

MANILA — Japan and the Asian Development Bank (ADB) will help develop a financing plan for a US$240 million power transmission project that will enable Laos to export hydro-electric power to Viet Nam.

The Japan Special Fund will provide, through ADB, a $1 million grant, while the Lao and Vietnamese governments will each contribute $150,000 to develop the plan.

The financing plan will involve the preparation of two loans, one each for Laos and Viet Nam. The loans will be structured and scheduled to suit the commercial operations schedule of the 11 hydro-power projects that will provide the 1,000 MW of electricity targeted for export.

The model and arrangements for the operation and maintenance of transmission facilities will also be drawn up.

Xavier Humbert, senior energy specialist of ADB’s Southeast Asia Department, says the estimated cost of developing the power transmission facilities will be around $150 million in Laos and $120 million in Viet Nam.

Roughly $55 million has been included in ADB’s 2010 lending programme for financing the project but a budget plan for the development of the power transmission facilities still needs to be finalised, Humbert said. It will be completed after discussion with potential co-financiers in both countries.

The power transmission project has four components: a 65-km, 500kV double circuit transmission line to be built from the Ban Sok substation in Laos to the Viet Nam border; a 100 km, 500kV double circuit transmission line from Loas to the Pleiku substation in Viet Nam; a 500/230 kV Ban Sok sbustation in Laos; and an upgrade of the Pleiku station.

According to ADB, Laos has only tapped 663MW of its 18,000 MW hydropower potential.

"Maximising the countrys hydroelectric power potential is challenging due to financing constraints," says Humbert. "The government recognises this, and has been strongly promoting private sector involvement."

Given soft domestic demand, most of Laos’ hydropower is targeted for export. Earnings from the exports, in turn, help fund projects that provide rural areas with electricity as well as various social development projects and poverty reduction efforts.

In contrast, Viet Nam is faced with an alarming electricity supply deficit because of an average annual growth rate of 7.5 per cent over the last decade. The nation’s Sixth Power Development Plan (2006-2020) estimates domestic power demand to rise 16 per cent annually from 2006 to 2010, by 11 per cent a year from 2011 to 2015, and by 9 per cent annually until 2020.

To meet this demand, Viet Nam is turning to its neighbours, including Laos, to purchase electricity. In March, both countries signed an agreement transferring as much as 5,000 MW by 2020. — VNS

15th meeting of the MRC Council Meeting held

2008-11-11T23:28:00.000-08:00

(KPL) The Mekong River Commission held the 15th meeting of the MRC council and the 13th Donor Consultative Group Meeting in Vientiane Capital on 7-8 November.

The meeting was chaired of Standing Deputy Prime Minister, Mr. Somsavat Lengsavad. And the event was attended by members of MRC council, delegations and representatives of Myanmar and development partners.

On the occasion Mr. Somsavat greeted welcome the delegation of the MRC council for working visit to Laos. Mme. Khempheng Pholsena, Council Chair for 2008-2009, also a Minister and Head of the Lao Water Resources and Environment Administration, said the Mekong River is revered as the 'mother of water' in Laos, as it nurtures and nourishes the rice fields and fish that form the background of the traditional economic and culture.

She added that cooperative resource and use sustainable water resources management are vital to sustaining the economic growth of the economies of the Mekong countries, and that in these matters the MRC is of great value to its member states.

This organization has an innate interest in balancing the use of the Mekong Basin's resources for the countries' mutual benefit and people's well-being with the need to preserve them for future generations to come, she said.

It also has the knowledge base and technical expertise to help us gain maximum benefit from these resources in the most sustainable manners.

The MRC Council, composed of ministers from each of the four Member States of Cambodia, the Laos PDR, Thailand and Vietnam, is the highest level of commission and meets once a year to make policy decisions and give guidance to the various programmes run by the MRC to implement the 1995 Agreement on Cooperation for the Sustainable Development of the Mekong River Basin.

For the first time the Council meeting held a session with the Donor Consultative Croup, the countries and organisations that provide most of the MRC's funding. Jeremy Bird, Chief Executive Officer of the MRC Secretariat, stressed that the perspective of these development partners on the activities of the MRC, and their views on matters of substance, is extremely important. Over the days of meeting, the four countries and development partners discussed the permanent location of the MRC Secretariat, financial matters, and the progress of programmes such as the Basin Development Plan.The meeting is also discussing recent high-profile events to concern the MRC, including the Regional Multi-Stakeholder Consultation on the MRC Hydropower Programme, also held in Vientiane in September, and the floods that occurred along the Mekong in Laos and Thailand during August.

The Hydropower Consultation marked the first time the issue has been discussed in detail by the four countries in the presence of a broad rang of Stakeholders, including participants from China and Myanmar. Mme. Khempheng praised the MRC's for taking a leading role, saying it is important to have a body that can give impartial and expert advice on this issue and serve as an avenue fro the Member States to jointly discuss and plan their developments.

Moreover, she continued, it can deliver views and information based on its knowledge and expertise and using the tools and processes established under the 1995 Mekong Agreement. In this context it is the role of the MRC to help counties build the needed capacities and institutions to make informed decision.

At the same day, the Danish Government signed an 18 million Danish Kroner (US$ 303 million) funding agreement over a two year period to support the work of the Fisheries Programme of the Mekong River Commission.

The agreement was signed by Mr. Peter Lysholt Hansen, Ambassador of Denmark to Vietnam and Lao PDR, on behalf of the government of the kingdom of Denmark and Mr. Jeremy Bird, Chief Executive Officer of the Mekong River Commission Secretariat.

The German Federal Ministry for Economic Cooperation and Development (BMZ) also signed a Euro 3 million (US$ 4.43) commitment over a two and half year period (December 2008-May 2011) for technical cooperation through GTZ to support the work of Mekong River Commission (MRC). The commitment was signed by Ms. Kerstin Henke, Country Officer for Lao PDR, Cambodia, MRC, on behalf of the German Federal Ministry of Economic Cooperation and Development and Mr. Jeremy Bird.

Mr. Bird thanked the German and Danish Governments for their continued and general support of the MRC's work and said the new technical cooperation would be of great assistance in helping the MRC achieve the goals set up in their 2006-2010 strategic plan.

Nongbouakham villagers are making more money

2008-11-04T22:06:00.000-08:00

(KPL) The villagers of Nongbouakham village, located close to Nam Theun 2 Hydroelectric project are now enjoying a higher standard of living because of the building of infrastructure and socio-economic development by this company and the villagers are using them, said the headman of Ban Nongbouakham, Nakai district of Khammouane province, Mr. Pin Soulasith.
This village is made up of the amalgamationnof four villages, Ban Nongbouakham, Ban Sobhear, Ban Sobma and Ban Namnien and this came about because the land of the villagers were acquired for the construction of this dam.
The vacation of their villages were made on 23 March 2007 and on this day all the people of the four villages, 330 of them from 63 households and 70 families went to reside in their new village.
The NT2 gave the villagers new houses, artisan wells, a primary school, a kindergarten, an integrated health center, an agricultural centre, a demonstration farm that only use organic fertiliser, electricity and also land for farming on the basis of 0.66 ha per family.
Now that they are in this new village many of the villagers are engaged in fishing, farming and general works and their average income per year is two million kip. Therefore, they are enjoying an increase in income as they were making an average of 500,000 to 600,000 kip per year when they living in the dispersed villages.

Nam Theun 2 to produce electricity for export to Thailand by late 2009

2008-10-31T02:01:00.000-07:00

(KPL) The Nam Theun 2 Hydropower project is expected to produce electricity for export to Thailand according to the plan on 15 December 2009.
The statement was released yesterday at the 3rd annual stakeholders forum in Thakhek, Khammouane province. Speaking at the opening ceremony, Mr. Somboune Rasasombath, Acting Minister of Energy and Mining, Chairman of the Steering Committee for the Construction of the Nam Theun 2 Project, said that the Nam Theun 2 project is the number one priority as far as the Lao PDR is concerned. The development of this project has taken quite a long time, starting with surveys and feasibility studies conducted in the 1980s. However, in the beginning of the 1990s, the Lao government together with foreign investors decided to examine and prepare for development options that involved joint venture between the state and private sector. But the construction of this project only started in mid-2005, and is now being conducted in full swing after receiving support from the World Bank; this was toward the end of March 2005.
The Nam Theun 2 Project has an installed capacity of 1,080 MW, of which 955 MW is for sale to Thailand, and 75 MW is for local consumption. When the construction is complete, the Nam Theun 2 will produce on average 5936 GWh of energy per year, thus annually generating no less than US$ 200 million.
The direct revenue of the government throughout the concession period amounts to around US$ 2,000 million or about US$80 million per year. In addition to a large amount of the direct revenue, the Nam Theun 2 will create indirect benefits for local people in many ways through socio-economic activities.
These will include rural development initiatives, establishment and upgrading of public utilities, in a sustainable way raising the standard of living of more than 5,000 poor household that practise slash-and-burn cultivation on the Nakai Plateau. The biodiversity in the catchment area of the Nam Theun 2 is to be managed and protected for more than 25 years.
Mr. Somboune added that every year during the construction phase, the project provides income and upgrades skills for 5,000-7,000 workers. During this period, technology is transferred to Lao workforce, employments are created, and local people are encouraged to provide services.
The 3rd annual stakeholders forum held to provide the participants with different kinds of information, including strong points and shortcoming as well as achievements in the implementation of the Nam Theun 2 Project.
It also provided an opportunity to all participants to give feedback and recommendations that can help improve the plan for implementing the project in the future with high level of effectiveness.

Xieng Khuang province: electricity to cover 8 districts by 2010

2008-10-29T03:07:00.000-07:00

(KPL) The electricity du Laos, Xieng Khuang branch has now expanded the 24 hour electricity use to 10,050 families in 4 districts of Paek, Khoun, Phoukoud and Phaxay.From now to 2010, the electricity du Laos of Xieng Khuang province has planed to extend its network to cover 8 districts or 50% of its total population.Mr. Sisouphan Phommachanh, Deputy Head of the Electricity du Laos of Xieng Khuang province disclosed that so far his organisation has expanded the electricity network with medium voltage to 238 km, 160 km of low voltage and installed 131 transformers. Today the people in Phoukoud and Phaxay districts has already access to the electricity. Mr. Sisouphan added that his organisation is extending the electricity to people of Kham district and the people in 9 villages of Thatom district will use the electricity at the end of 2009.

Hongsa Lignite developers approve US$16 million in compensation

2008-10-19T21:21:00.000-07:00

(KPL) At least 390 families in five villages living near Hongsa Lignite Power Plant Construction Project site in Sayaboury province must be removed at the end of this year, before starting its construction work at the beginning of 2009, a local official said.
These families will be removed to resettlement area of Napong village, development area in Hongsa district, Sayaboury following the Lignite Power Plant approved more than US$ 16 million to them.
The Hongsa Lignite Power Plant Construction Project has been jointly invested among Laos, Ban Pou Company of Thailand, Ratchaboury Comapany and Chinese companies.
Mr Sisoupoy Kongsanith, Deputy Governor of Sayaboury province said that developers of the Hongsa Lignite Power Plant Construction Project has agreed to compensate impact people in order to hope long-term benefits.
Initially it approved over US$16 million to 390 families.
He said that each family would receive compensation in accordance with real condition. He believed that one family will get at least 50 million kip.
Thai investor invested in the Lignite Power Plant in Sayaboury province, with an expectation of investment amounted to US$1 billion with generation capacity of 1,800 Megawatt.

Theun-Hinboun Power strikes loan deal for expansion project

2008-10-16T00:47:00.000-07:00

(KPL) The Theun Hinboun Power Company Limited (THPC), the owner of the 220-MW Theun Hinboun Hydropower Project located on Nam Theun and Nam Hinboun river basins in Borikhamsay Province, approximately 280km from Vientiane, signs loan agreements worth USD 600 million to support the construction of the Theun Hinboun Expansion Project on October 8, 2008 at the Conrad Hotel in Bangkok.
Dr. Prasarn Trairatvorakul, President of Kasikorn Bank, Dr. Apichai Boontherawara, Managing Director of the Export - Import Bank of Thailand, Mr. Jeckie Surtani, Head of Project Finance Asia, KBC Bank, N.V. As well as representative from BNP Paribas, Australia and New Zealand Banking Group Limited, Bank of Ayudhya Public Company Limited, Siam City Bank Public Company Limited and Thanachart Bank Public Company Limited, signed the loan agreements with Dr. David L. Michaels from THPC. The signing ceremony was also witnessed by Mr. Viraphonh Viravong, Director General, Department of Electricity, Ministry of Energy and Mining, of the Lao PDR, Mr. Khammany Inthirath, Managing Director of Electricite du Laos, and Mr. Jan Cedewell, Director Project Development Stathraft as a sponsor of the Expansion project.
According to the press release from THPC, the Company's original 220MW hydropower project started construction in 1995 and commenced commercial operation in March 1998, from which date substantially all of the electrical energy produced thereof has been supplied to Thailand under a long-term power purchase agreement with the Electricity Generating Authority of Thailand. In the past 10 years, Theun Hinboun Power project has been a stable source of revenue to the Government of Lao from taxes, royalties and dividends received from the 60% ownership in the Company through the Electricite du Laos.To meet with the increasing demand for power of both Thailand and the Lao PDR, in 2007 THPC has decided to expand its existing 220MW generating capacity to 500MW. The loan will be used to finance the construction of an upstream dam to create storage reservoir to allow the project to utilize the significant water resources which are currently being spilled by the existing project facilities, creating a new tunnel to divert water to the power house located downstream, and installing additional turbines to increase the existing capacity by 280MW from 220 MW to 500 MW by 2012. the project calls for an investment of USD 665 million and the construction will take 4years from 2008 to 2012.
Once completed, the Theun Hinboun Power Project will have a combined capacity of 500 MW, approximately 88% of which will be for sale to Thailand with the remaining for local consumption in the Laos .

Vietnam to invest in hydropower construction in Laos

2008-10-05T21:30:00.000-07:00

(KPL) A feasibility study of Nam Theun 4 hydropower construction project will be operated in central province of Bolikhamsay, by a Vietnamese company after inking in the MoU last week.
The Memorandum of Understanding (MoU) was signed here between the Ree Power Plant Company of Vietnam and Ministry of Planning and Investment.
The company will conduct 18 month-study to determine the viability of the project.
The company will sign a further agreement with the government if the study shows the project to be economically viable.
If the project goes ahead, the plant will have an installation capacity of about 180MW.
Laos has the potential to generate a total of about 26,600MW of power from hydro sources, excluding the mainstream Mekong River.
Of this, about 18,000 MW is technically exploitable. About 12,500MW can be potentially generated by sources in the major Mekong sub-basins and the remainder in minor Mekong or non-Mekong basins.
Less than 2 percents of the country's hydropower potential has been developed over the past 30 years, according to the Energy Promotion and Development Department.

Champassak, 26 villages access electricity during couple of years

2008-10-05T19:10:00.000-07:00

(KPL) Twenty-six villages have accessed electricity since 2006. The province plans to have 118 villages across the province use electricity by 2012.
Mr. Niphone Viengpasard Head of Champassak Administration Office, governors from 10 districts in the province and relevant officials held a meeting on the electricity expansion in the province during the last few years.
The province puts priority to electricity expansion to focal development areas and the villages, which have potential tourist sites and used to be revolutionary bases.
At least 7.8 million US dollars will be spent for the expansion of electricity during the next four years. Twenty per cent of the fund injecting into the expansion is from the government and the rest 80% from the World Bank and Nam Theun II Hydropower Project and the Electricity du Lao.

MRC countries debate hydropower management

2008-09-28T19:49:00.000-07:00

More than 200 representatives from member countries of Mekong basin, domestic and international organisations along with the private sector are discussing how to sustain the development of hydropower dams in the Mekong region.

The discussion in Vientiane is hosted by the Mekong River Commission (MRC) Secretariat for regional multi-stakeholder consultation on its hydropower programme. The meeting is taking place from September 25 to 27.

“Hydroelectricity has long been recognised as one of the cleanest, most sustainable and, in the long run, least expensive methods of generating power,” said MRC Joint Committee member for the Lao PDR, Mr Chanthavong Saignasith.

He acknowledged there could be negative impacts associated with hydropower and said it was important the Lower Mekong countries were able to study the benefits and costs associated with dam construction before making decisions.

The MRC provided decision-makers in the four Lower Mekong countries with a sound knowledge platform, enabling them to assess the gains and impacts of each hydropower proposal in a basin-wide context, he said.

This included scientific input from many different fields and sources across the Mekong region and beyond, from village-level fisheries research to international navigation experience. The MRC sources and provides such data, and also assesses plans for various power-generating scenarios through integrated modelling tools.

“The MRC hydropower programme is being designed to assist this decision-making process, and to help set up mechanisms that can make sure countries' concerns are addressed as approved projects are implemented,” said Chief Executive Officer of the MRC Secretariat Jeremy Bird.

He said the creation of a framework for regional and cross-sector cooperation on hydropower gives great impetus to sustainable development in the Lower Mekong Basin .

“The MRC believes that developing cooperation and dialogue between countries, at multiple levels of society, can help ensure the growth of the hydropower industry is managed in a way that conserves environmental resources and the livelihoods of the people that depend on them,” he said.

Acting MRC Communi-cations Officer Aiden Glendinning stressed the importance of consultation in the decision-making process.

“It is very important to understand that if a country wants to build a dam on the Mekong , it needs to write a letter to the MRC which we can pass on to other members for discussion and agreement,” he said.

Mr Glendinning said at a press conference yesterday the MRC's role was to arrange meetings for the four members of the lower Mekong countries - Cambodia , Lao PDR, Thailand and Vietnam - to discuss the development of hydropower dams. China and Myanmar are dialogue partners of the MRC.

He said regarding the contribution to flow, 16 percent of water came from China , two percent from Myanmar , 18 percent from Cambodia , 35 percent from Laos , 18 percent from Thailand and 11 percent from Vietnam . The volume of water in the Mekong is about 475 cubic kilometres a year, which equals 6,500 cubic metres per person per year.

“Dams will block fish migration and create an unnatural situation for fish, but dams can also provide protection from flooding, store water during the rainy season for use in dry season agricultural activities, and produce electricity,” Mr Glendinning said.

“Meanwhile, you have to share the benefits. That means not only benefits for people near the reservoir, but you have to plan for the sustainability of hydropower and consider ways to help people who live downstream to benefit as well.”

Presentations were made by participants from all stakeholder sectors, including national electricity enterprises from the MRC member states, environmental advocacy groups, developers, and national Mekong committees.

Hydropower industry experts from China and outside Asia also attended the consultative meeting. Various different perspectives emerged, and these will help inform the MRC hydropower programme and encourage wider consultation, thus contributing to development outcomes.

By Vientiane Times
(Latest Update September 26, 2008)

2 villages in Pek district access electricity

2008-09-10T03:21:00.000-07:00

(KPL) Two villages of Ban Nongpet and Ban Khangvieng in Pek district, Xiengkhuang province have connected to electricity.
The opening ceremony on electricity use was held at Ban Khangvieng last week with the attendance of Acting Governor of Xiengkhuang province, Mr. Vengthamone Phommachanh, local authorities and people.
The electricity installation commenced in April and completed in July with an investment of around 2.5 billion kip (US$ 300,000) by the Electricite du Lao.

113 families of Soukhoumma district access to 24-hour electricity supply

2008-08-21T02:49:00.000-07:00

(KPL) 113 families of Ban Nongdengneua, Soukhoumma district, Champassak province, has now accessed to 24-hour electricity supply.
The electricity network construction project for Ban Nongdengneua started in July, 2007 with 700 million kip of budget, 260 million kip of which was the contribution from local people.
The construction included the installation of low- and medium-voltage electricity system in which an 8-km long 22-Khz electricity network was built and installed a 160 KVA transformer.
Ban Nongdengneua, one of nine villages in Soukhoumma district, comprises 1,855 people and 347 families.
Local villagers live on rice farming and animal raising.

Energy and mines minister dies

2008-07-31T04:18:00.000-07:00

Lao Minister of Energy and Mines, Dr Bosaikham Vongdara, died yesterday at the age of 60.

According to a press release from the government, Dr Bosaikham's health deteriorated this week.

Dr Bosaikham, who was also a member of the Party Central Committee, was offered extensive medical care by a team of local and foreign doctors but sadly died yesterday morning.

Dr Bosaikham was born on April 15, 1948 in Phonsavanh village, Paek district, Xieng Khuang province. He married Ms Vansy Vongdara and they had two children.

Dr Bosaikham joined the revolutionary movement in 1974 and worked as a technical official at the Central Economic Affairs Office in Viengxay, Huaphanh province until 1975.

From 1978 to 1982, he studied in the former Soviet Union and obtained a Doctorate in Geology. He was a secretary of the Lao student youth union while in Moscow .

From 1996 to 1999, he was Ministry of Industry and Handicraft Office Head and Party committee member for this ministry.

He was the Lao Trade Union President in 2005 and was e lected to the Party Central Committee in 2006.

Dr Bosaikham was Minister of Energy and Mines from 2006 until his death.

The Party Central Committee, National Assembly and government agreed to hold a memorial service to pay tribute to him. It started yesterday and will continue until Sunday in a hall of the Prime Minister's Office in Vientiane .

The Party Central Committee Secretariat has appointed a committee to host the memorial service for Dr Bosaikham. Minister of Labour of Social Welfare, Ms OnchanhThammavong, has been named committee president and Minister of Education Dr Somkot Mangnomek as vice president.

By Vientiane Times
(Latest Update July 25, 2008)

NA approves Hongsa power plant amid environment concerns

2008-07-29T00:52:00.000-07:00

The Hongsa lignite-fired power plant pr oject was yesterday given in-principle approval by the National Assembly, despite its concern the project could negatively impact the environment and livelihood of local people.

One of their main concerns was the health of people who lived in surrounding areas, as the plant will emit carbon dioxide as part of the electricity production process. The members encouraged the project to use clean technology as much as possible.

NA members urged the government to continue doing a detailed study on the negative and positive impacts of the project, whilst demanding reasonable compensation for the 367 families from five villages who would have to be resettled.

NA member for Champassak province, Mr Kisin Sinphan-ngam, said the living standards of the 367 families must be improved.

“They need to have enough land to support themselves,” he said.

“If they don't, this project will only increase their poverty.”

NA member for Khammuan province , Dr Bounnhong Khinsamone, said Laos had not reaped the full benefits of foreign investment in the past. He gave the example of companies that had promised to employ Lao workers, but later claimed local workers did not have the necessary skills and so imported foreign labour instead.

The Lao Holding State Enterprise General Manager, Dr Somboune Manolom, accepted the project would have some negative impacts but claimed the benefits would be far greater, boosting the country's economy while reducing poverty.

Electricity production will begin in 2013, with the project costing about US$3,900 million.

The country will receive more than US$2,500 million over a 25 year period through share dividends and taxes.

The Lao government will hold a 20 percent share in the project, worth US$196 million. About US$100 million of the value of the government's share will be borrowed from the EXIM Bank of China and the remainder from th e China Development Bank.

Almost 13 million tonnes of lignite will be excavated to supply the plant each year, totalling 325 million tonnes over the 25 years of the project concession.

There is estimated to be about 713 million tonnes of lignite in the 12sqkm of land allocated to the project. This is sufficient to continue fuelling the power station for an additional 25 years after the concession period ends.

The project is expected to create jobs for about 10,000 people, of which 80 percent will be Lao.

Local people will also benefit from infrastructure development including roads, schools, irrigation, hospitals, markets and electricity.

Villagers will not need to be resettled until the project commences work in the areas they live in.

The government has set up an environmental management committee to resettle villages affected by the project to ensure its effectiveness.

Article 9 of the electricity law stipulates that hydropower development projects with an installed capacity of more than 50,000 kilowatts must be approved by the NA.

The law on water and water resources further stipulates that any changes to water flow also need approval from the NA.

The Hongsa lignite project will have a generating capacity of 1,800 megawatts and will change existing water flow, meaning the project requires approval by the NA.

By Somsack Pongkhao
(Latest Update July 25, 2008)

Champassak to stop using Thai electricity next year

2008-07-15T00:09:00.000-07:00

Champassak province will stop buying electricity from Thailand in 2009, according to Champassak Provincial Electricity Department Deputy Manager, Mr Khoune Bouaphengphanh.

“We will produce enough electricity for domestic use once the new Xexet 2 hydroelectric power station is complete,” he said.

When the plant begins operating it will supply all of Champassak's power demands, as well as generating electricity for the southern provinces of Attapeu, Saravan, Xekong, and Savannakhet.

“At present the province buys electricity from Thailand during the dry season from November to March, because we cannot generate enough for our use at this time of the year,” Mr Khoune said.

“The Xexet 2 plant began construction in 2005 and when it is finished in 2009 we will have electricity all year round and can sell it to the four provinces nearby.”

There are 10 districts in Champassak province, and more than half of the 926 villages receive electricity from the provincial branch of Electricite du Laos.

The branch plans to expand the grid system in rural areas to reach another 119 villages over the next six years, with funds allocated from the World Bank, according to Mr Khoune.

By 2010, the provincial electricity department expects the grid will reach 70 percent of villages in Champassak province.

Mr Khoune said an ambitious goal for Laos would be to provide electricity to 75 percent of rural families by 2020. Currently 80 percent of the Lao population lives in rural areas, but only 43 percent of these people have access to electricity.

Solar panels are becoming important assets for poor families who cannot yet access the national electricity grid, he said. Champassak province is located in southern Laos and shares borders with Thailand and Cambodia.

By Khonesavanh Latsaphao
(Latest Update July 15, 2008)
http://www.vientianetimes.org.la/FreeContent/FreeContent_champassak.htm

Namkene hydropower dam construction in Kasy to take shape

2008-07-08T03:32:00.000-07:00

(KPL) The Vientiane province Planning and Investment Division and the SV Group Company on July signed an MOU on feasibility study in the construction of a hydropower dam along Namkene river in Kasy district, Vientiane province. The dam will have an annual installed capacity of 10 million kW/h, worth US$5 million. The signing ceremony took place at Vientiane province Planning and Investment Division which was signed by Head of Vientiane province Planning and Investment sector, Mrs Singkham Dongsavanh and Director of the SV Group Company, Mr Phanthachith Inthilath.
The Namkene hydropower electricity construction area is 1 km far from Kasy district's urban north and is about 15 km far away from Road No. 13 North in Phachao village. The transmission line of the Namkene hydropower plant will connect the electric grid directly in Kasy district.
The construction of this dam impact a few environment and living conditions of local people due to villagers would not have removed.
The logs have already cleared from the flooding area.

Delayed budget supply, a barrier of Nam Ngum development project

2008-07-08T03:13:00.000-07:00

(KPL) Many problems of Nam Ngum reservoir Development project need to be dealt particularly in the promotion of agriculture production linking to the use of budget supply seems to delay.
So the authorities of Nam Ngum reservoir Development project gathered at Lao Plaza hotel to discuss on the development of the project work and solve troubles.
This project, a priority of the Government and pilot project for conservation and sustainable natural resources, particularly water resources protection which was financial support from many resources.
This project covers Xiengkhouang, Luang Prabang, Vientiane provinces and Vientiane Capital which a lot of state organization taking part in the project. By focusing on the improvement of people's living conditions living in reservoirs and upper part of Nam Ngum river linking to natural resource and environmental protection. Over the past six months of the project operation seemed many frameworks of the project have improved considerably and a lot of works have had progressively, particularly in the strengthen in purchasing, employment, coordination, inspection and other technical works of all project cells, Mr Khamchanh Vongphosy, Deputy Minister of Agriculture and Forestry applauded the project progress, who he gave a speech at the 7th meeting of Steering Committee of Nam Ngum Development Reservoir held at Lao Plaza hotel on 4 July.
He added that the project financial supplies did not implement on schedule, the village development fund connecting to eradication of slash-burn cultivation in some localities have not taken shape.
In addition, the releasing of loan to local farmers was quite low so they could not bring a few loan do anything causing a number of people lost opportunities of shifting fixed vocational job and family economic development. Despite the project works have already been divided to all provinces concerned to manage and respond all works was limited.
Mr Khamchanh urged the participants to brainstorm into the problems in line with realistic conditions of all localities.

Russian investor to start southern hydro projects

2008-06-26T22:16:00.000-07:00

A Russian company expects to spend more than 6.8 trillion kip (about US$790 million) on two hydropower projects in two southern provinces of Laos.

Mr Oleg Kabardin ( left ) shakes hands with Deputy Minister of Planning and Investment Thongmy Phomvixay after exchanging agreements. --Photo Khamphanh

These will be the Nam Kong 1 plant in Attapeu province and the Xekong 4 plant in Xekong province.

“We hope to start building these plants next year,” General Director of Region Oil LLC, Mr Oleg Kabardin, said at a signing ceremony in Vientiane on Monday.

Region Oil LLC signed project development agreements (PDAs) with the Ministry of Planning and Investment in Vientiane at a ceremony attended by Deputy Prime Minister Dr Thongloun Sisoulith.

The Nam Kong 1 plant will have a dam wall 85.3 metres high and 386 metres long and will have an energy generation capacity of 469 GWh per year.

Investment in the plant will be 1.4 to 1.6 trillion kip (US$168 to US$186 million), according to a press release from the ministry.

The Xekong 4 dam wall will be 169 metres high and 1,027 metres long and the plant will be able to generate 1,901GWh per year.

The investment cost of this project will be about 5.3 trillion kip (US$604 million), according to the press release.

Both projects are currently governed by the PDA, which allows the investor to spend 18 months conducting additional surveys to obtain more details.

During this period the investor is required to revise previous studies, including the feasibility study and the environmental and social impact studies.

The investor will also discuss the power purchase price during this time and will make a purchase agreement with Electricite du Laos (EDL).

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

The investor will own the projects for 30 years after signing the concession agreement. The Lao government will hold a 20 percent investment share and the rest will belong to the investor.

Mr Oleg said the company had prepared a draft concession agreement for the government to sign and a draft power purchase agreement for EDL. Other drafts have been prepared for the purchase of electricity by Vietnam and Thailand .

The company is currently working on the design and technical systems of the two plants.

Region Oil LLC signed a memorandum of understanding with the Lao government several years ago to start studies on four hydropower projects, Nam Kong 1 and 3 and Xekong 5 and Xekong 4.

The company worked with Lao and Norwegian firms on the basic study for the Xekong 5 project. This study and a feasibility study have both been completed.

“We will have further discussions with the Lao government about the Nam Kong 3 project,” Mr Oleg said.

By vientiane times
(Latest Update June 25, 2008)

Malaysia signs on hydro plant

2008-06-23T01:57:00.000-07:00

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)

Supplements to MOU Sekaman 4 hydropower signed

2008-06-19T13:49:00.000-07:00

(KPL) Supplements to a Memorandum of Understanding on a group of Vietnamese-invested hydro-power projects in Laos were signed in Vientiane Capital on June 16.
The signatories were Lao Deputy Minister of Planning and Investment Thongmy Phomvisay, and President of the Managerial Board of the Viet-Laos Power Joint-stock Company, Mai Huy Tuan. The signed accord on the group of Sekaman hydro-power projects No. 4 has developed from the former Sekaman 4 project signed with the Lao government in December 2006.
The projects will be based in Dakchueng district, Sekong province with a capacity of 200MW and an annual output of 900 million kWh.
They are scheduled to start construction in 2009 and begin operating in 2013. The Viet-Laos Power Joint-stock Company has signed contracts to conduct a feasibility study and invest in a number of hydro-power projects in Laos, including Sekaman 1, Sekaman 3 and Sekaman 4, with a gross capacity of 1,000MW and an annual output of over 4 billion kWh.
Once these projects are put into operation, the Viet-Laos company will export electricity to Vietnam

Study for Huaphan hydropower plant behind schedule

2008-06-19T13:36:00.001-07:00

Construction of the Nam Sim hydropower project in Huaphan province was set to begin earlier this year, but this has not been possible because the feasibility study is not yet complete.

“We can't say when construction will begin because the investors are working slowly,” an official from the Contract Negotiation and Management Division of the Energy Promotion and Development Department said recently.

Work cannot begin on the small-scale hydropower plant until the study is complete. Norwegian investors signed a project development agreement with the government last year.

“The investors are working on additional surveys to obtain more details about the project,” the official said.

The agreement for the project was signed between Norpower AS Company and the Ministry of Planning and Investment last October.

The company began researching the project in 2003, carrying out an initial feasibility study and engineering survey and analysing potential environmental impacts before submitting the findings to the government in 2006 for approval.

“The investors are also preparing some documents and seeking a bank loan to help finance the project,” the official said.

The hydropower plant, to be built in Viengxay district, will cost about 138 billion kip (US$14.4 million). The government will hold a 25 percent investment share.

The investors estimate it will take two years to build the plant, which will have an installed capacity of 7.8MW and will generate electricity for local supply.

The company will operate the plant for 25 years after construction, and sell the electricity generated to Electricite du Laos (EDL) for use in the province.

“The company has not yet signed a purchase agreement with EDL,” the official said.

The hydropower plant will reduce the need for the purchase of electricity from Vietnam , and will help to develop the province's infrastructure and economy.

According to the Ministry of Energy and Mines' 2007 annual report, Laos imported 475.9 million kWh from Thailand , China and Vietnam last year.

The government is currently promoting the rapid development of small and medium power plants for local supply to reduce the need for imported electricity.

These plants will have installed capacities ranging from 2 to 100MW.

Other small hydropower plants planned are on the Nam Nhone in Tonpheung district, Bokeo province, the Nam Ham in Botaen district, Xayaboury province, Tadslen in Xepon district, Savannakhet province, and Xelanong 2 in Ta-oy district, Saravan province.

Laos currently has a combined installed capacity of about 670MW from 11 major and 36 smaller and medium hydropower plants, which generate energy for both domestic and export markets.

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 19, 2008)

Laos, Vietnam ink supplements to major hydro-power project

2008-06-19T13:21:00.000-07:00

(KPL) Supplements to a Memorandum of Understanding on a group of Vietnamese-invested hydro-power projects in Laos were signed in Laos ' capital Vientiane on June 16.
Signatories were Lao Deputy Minister of Planning and Investment Thongmy Phomvisay and President of the Managerial Board of the Viet-Laos Power Joint-stock Company, Mai Huy Tuan.
The freshly-signed accord on the group of Sekaman hydro-power projects No. 4 has developed from the former Sekaman 4 project signed with the Lao government in December 2006.
The projects will be based in Dakcheung district, Sekong province with a capacity of 200MW and an annual output of 900 million kWh.
They are scheduled to start construction in 2009 and begin operating in 2013.
The Viet-Laos Power Joint-stock Company has signed contracts to conduct a feasibility study and invest in a number of hydro-power projects in Laos , including Sekaman 1, Sekaman 3 and Sekaman 4, with a gross capacity of 1,000MW and an annual output of over 4 billion kWh.
Once these projects are put into operation, the Viet-Laos company will export electricity to Vietnam

Deforestation impacts hydropower potential

2008-06-09T23:54:00.000-07:00

Deforestation could negatively impact hydropower projects, according to the National Land Management Authority president.

Speaking at a press conference in Vientiane yesterday, Mr Kham-ouan Boupha said levels of deforestation in Laos were already back to those of 1989, when 47 percent of Laos was covered in forest.

The current situation was even more worrisome, because this figure had further reduced, he said.

“In 1989 we should have held up a red light to logging, but now the problem has got even worse,” he said.

“If we faced a red light then, I don't know what colour light we're facing now.”

Mr Kham-ouan maintains he has seen satellite images which back up his claim.

He said if Laos 's forests continued to disappear, it would damage the potential of local hydropower projects.

If deforestation occurs in a reservoir's catchment area this contributes to soil erosion. Soil then fills the reservoir and reduces the life of the hydropower project.

Mr Kham-ouan said he knew of several hydropower dams that had failed to meet production targets for this reason, including Houayho in southern Laos and Nam Mang in Borikhamxay province.

“Another dam in Luang Namtha province has insufficient water for electricity production because people cleared forests for rubber tree plantations,” he said.

Mr Kham-ouan said illegal logging and slash and burn cultivation were contributing to forest decline.

He said deforestation also contributed to changing weather patterns and the increasing frequency of floods and droughts in Laos during the past two years.

In order to encourage reforestation and protect Laos 's capacity for hydropower, Mr Kham-ouan has called on officials from relevant sectors to strictly enforce current laws to ensure illegal logging is eradicated.

Another challenge in preserving forests is instances of villagers taking ownership of state land without permission, including forest areas, and clearing the land for farming.

This problem could be addressed if villagers were given land titles and legal rights to land, and these land titles were enforced to prevent forested land from being damaged.

Foreign investment must also preserve the environment while ensuring local people benefit.

In addition to deforestation, this was also important for poverty reduction, he said.

Mr Kham-ouan found many investment projects had implemented a “1+4” policy by employing villagers to work as labourers.

He said this was not a good way to reduce poverty.

“One man I met in Xayaboury province earns about 50 million kip per year from farming his land on his own. In contrast, labourers earn only 20,000 to 25,000 kip a day.” By these calculations, if a labourer worked every day of the year he would only earn about 9 million kip.

The government's policy is encouraging investors to implement the “2 + 3” policy to ensure investment is beneficial to investors and local people, as well as to the country in general.

Under this policy, investors must provide funding, technical training and a ready market, while villagers provide their land and labour.

By Somsack Pongkhao
(Latest Update June 6, 2008)
http://www.vientianetimes.org.la/

Bokeo hydropower plant on track

2008-06-03T23:42:00.000-07:00

Construction of the Nam Nhone hydropower project, a small-scale power plant to be located in Bokeo province, will start later this year.
“The main components are the powerhouse and dam and we will begin work after the wet season,” said an official from the Contract Negotiation and Management Division of the Energy Promotion and Development Department, in an interview on Friday.
The hydropower plant, located in Tonpheugn district, will cost about 39 billion kip (US$4.5 million) to build. It is an investment between two businesses from Hong Kong with a shareholding of 70 percent, and a Lao investor.
Land is being cleared at the site to build the powerhouse and an access road.
A 22kV transmission line will be installed to bring electricity to the site. This will be 6km long and cost about 960 million kip (US$100,000).
“The plant is expected to be finished by the end of next year and energy generation should start in early 2010,” the official said.
The hydropower plant will have an installation capacity of 2.4 megawatts and a forecasted annual production of about 10.4GWh. The electricity will be sold to Electricite du Laos (EDL) for supply to Bokeo consumers.
The investors and EDL signed two agreements for energy purchase in February and a concession agreement in March 2006 following a feasibility study in 2005.
“This project won't affect the environment or local people because there won't be a large reservoir; there will be no population resettlement,” the official said.
Instead of a dam, the project will operate using a weir to raise the water level at the intake. As the water reservoir is small and will flood a very limited area, no homes or farmland land will be flooded, and the plant will not significantly change the water flow in the river.
It is expected the plant will contribute to the development of industrial activities in the province, creating jobs and stimulating the local economy with a fishing basin.
New infrastructure such as a road and a bridge will improve access to farmland, and the project will directly contribute to the electrification of local villages.
“The government is promoting the development of small-scale power plants and Nam Nhone is a model example of a private small-scale investment,” the official said.
The government considers this project important because it will be the only local energy source for Bokeo province, and may replace Thai electricity imports.
The government is urging the building of small and medium power plants for local supply to reduce the need for power imports. These plants will have installation capacities ranging from 2 to 100 megawatts.
Other small hydro plants planned for construction are on the Nam Ham in Botaen district, Xayaboury province, Tadslen in Xepon district, Savannakhet province, and the Nam Sim in Viengxay district, Huaphan province.
Laos currently has 11 major hydropower plants and at least 36 smaller projects. These generate energy for both domestic and export markets and have a combined installation capacity of more than 670 megawatts. The 36 smaller hydropower plants are government investments.

By VIENTIANE TIMES (Latest Update June 2, 2008)

EDL considers prepaid accounts

2008-05-29T23:23:00.000-07:00

Electricite du Laos (EDL), the largest electricity supplier in Laos , plans to introduce a new system requiring customers to pay for their electricity in advance.

EDL Acting Managing Director, Khammany Inthirath yesterday confirmed the state-owned enterprise was developing the new system in response to customers failing to pay their bills.

He said a large number of customers were late making payments, but he could not say how much money was owed to the company in unpaid accounts.

According to an electricity official, many customers pay bills once every few months, instead of immediately after the bills are issued. This negatively affects the company's cash flow.

Mr Khammany said the new system would enable EDL to collect money from consumers in advance, which would prevent customers accumulating large debts.

“We will do a test and then we will decide whether we will introduce the new system or not,” he said.

“The prepaid electricity system is widely used in our neighbouring countries of Thailand and Vietnam .”

EDL Deputy Managing Director Mr Savath Phoumalavanh the new system would also address customer dis putes about how much electricity was used each month.

Many people have filed complaints, saying staff collected incorrect data from their electricity meters and charged them for using more electricity than they really used.

He said the new electricity payment system would operate in a similar way to the prepaid mobile phone system, which requires customers to buy prepaid cards.

He said EDL was considering introducing the prepaid system in the four major provinces of Vientiane , Luang Prabang, Savannakhet and Champassak in September.

EDL would like to establish the new system with state organisations and major industrial units first. Initially the new system would be optional, but once it is fully operational consumers will not be able to access the electricity supply without a prepaid card. The prepaid cards will be sold in many places, like prepaid cards for mobile phones.

New electricity meters will also need to be installed if the new payment system is introduced.

By Ekaphone Phouthonesy. www.vientianetimes.org.la (Latest Update May 30 , 2008)

Xieng Khuang villages to power up Khonesavanh Latsaphao

2008-05-27T20:21:00.000-07:00

Residents of Kham district, Xieng Khuang province, will be connected to the national electricity grid next month, a provincial official said on Monday.

Kham's central market has already been connected to the network and the remainder of the town will receive electricity supply by the end of next month, said an official from the Xieng Khuang provincial branch of Electricite du Laos, Mr Visien Sisamak.

“Connection to the electricity grid ensures residents will be able to use electricity at all times of the day and night. So, we are very pleased to deliver electricity to the people here,” he said.

At present, locals source power from a small hydropower station but the electricity generated is not sufficient to meet families' needs.

Because the dam used by the power station is so small, it cannot create sufficient energy for everyday use. In fact, it takes a whole day to build up and release the energy required for households' nightly use,” Mr Visien said.

“People only have electricity from 7 to 11 pm,” he said.

Some people have installed generators in their homes to ensure they can have electricity throughout the day, but they cannot use this power for cooking purposes. Generators are easy to obtain in local markets, but the increasing price of fuel means they are becoming expensive to run.

Kham district consists of 120 villages, but not all of them will be connected to the electricity grid. Only people living in the largest urban centres will have access to the network, Mr Visien said.

According to Electricite du Laos, the government is in the process of expanding the national electricity grid into the rural areas, where about 80 percent of the population lives. At present 43 percent of people living in rural areas have access to electricity.

By Vientiane Times
(Latest Update May 27, 2008)

Thailand, Laos agree to build dams in Mekong river

2008-05-27T20:07:00.000-07:00

(KPL) Thailand and Laos have signed agreements to construct three dams where the Mekong river passes through Ubon Ratchathani, Nong Khai and Loei provinces, said Thailand's Prime Minister Samak Sundaravej on May 25.
According to VNA, once completed, the three dams will help retain water in the Mekong river, enabling Thai and Lao villagers who live on both sides of the river to have sufficient water for the whole year, PM Samak added.
He said he believed in the feasibility of the idea of diverting water from the Nam Ngum river in Laos through underground pipelines to feed Thailand 's northeastern people, for the reason that the Lao river is located on a higher ground than Thailand 's northeastern region.
The Thai PM also revealed a government project to divert water from the Mekong river to feed the water-starved northeastern region.
Water from the Mekong river in Chiang Khan district of Loei province would first be diverted for storing at Ubolratana Dam in Khon Kaen for agricultural production. The two provinces are 80 kilometres apart.

Sino interests in substitute energy investment in Laos

2008-05-21T21:46:00.000-07:00

(KPL) China expressed interests in investment of substitute energy sector and the establishment of slaughterhouse in Laos.
The intention was made during a Chinese delegation from Song Jing City of China.
Mr Vang Chi Qaung who led the Economic-Commercial Relation delegation of Song Jing City, said during called on Mr Anouphap Tounalom, new Deputy Vientiane Mayor, on 15 May, Vientiane Capital.
Mr Qaung, Deputy of Foreign Economic-Commercial Relation Department of Song Jing City and his delegation paid a working visit to Laos between 11 and 16 May.
In 2004, Song Jing businesspeople have invested in animal raising and agriculture and rice seeds production.
The Chinese delegation has informed the result of investment in Laos yielded a great accomplishment in agriculture and forestry cooperation between Song Jing and Vientiane Capital.
The sides have pledged to further existing bilateral cooperation.
The visit of delegation was warmly welcomed by Mr Anouphap who has also expressed congratulation for the past implementation of bilateral cooperation.
He highly valuated Chinese investment in Laos and cooperation between two nations in order to boost cooperation between the agriculture and forestry sector of Vientiane and Song Jing as well as Laos and China.

Lao company to market Chinese LED lights

2008-05-19T19:26:00.000-07:00

New energy-efficient lights, powered by renewable energy sources, are now available in Laos after a business partnership was formed between a local company and a Chinese company.

On Friday, Phongsavanh Telecommunication Spare Parts Supply and Feng Huo Ji Tuan Co (from the Chinese Shaanxi province) signed a 10-year agreement to exclusively market and distribute the Chinese-made goods in the local market.

Phongsavanh Telecommunication Spare Parts Supply General Manager Lee Tian said the LED lights were designed to use solar and wind based power and were environmentally friendly.

These products would be popular with Lao customers because they can save up to 80 percent more energy than lights currently available, he said.

Lights fuelled by solar energy can be used to light roads, homes, gardens, schools and public places where there is strong sunshine. When the sun shines, it charges the battery and at night the light will turn on automatically.

Lights fuelled by wind can be installed in areas where there are strong winds, such as areas in northern Laos .

Mr Tian said LED lights would replace conventional lights in the near future because they saved energy and were cheaper to run.

He said the lights were produced in China with modern technology and met international standards.

The company plans to invest in the establishment of an LED light manufacturing factory in Laos to sell the good domestically and abroad, but Mr Tian could not confirm when this might happen.

Feng Huo Ji Tuan Co General Manager Li Yuan Jun said Laos was an attractive market for the products because the country had strong sunshine, and also strong winds in areas of northern Laos such as Xieng Khuang province.

The company will target customers in rural areas where electricity from the national power grid is not accessible.

President of Phongsavanh Group, Mr Oth Phongsavanh, attended the signing ceremony.

By Vientiane Times

(Latest Update May 19, 2008)

Three power plants delay export

2008-05-15T22:49:00.001-07:00

(KPL) Developers of three hydropower plants have made a proposal to the government to put off the export of electricity generated by them one year after the original plan.
According to the Ministry of Energy and Mining, the three power plants included Nam Ngum III, Nam Theun I and Nam Ngieb I.
Nam Ngum III and Nam Theun I have proposed the delay from 1 January 2013 to 1 January 2014 and Nam Ngieb I from January 2014 to January of 2015.
The director of the Energy Commerce and Promotion Department, Mr. Saypaseuth Phomsoupha, said that the developers of the investment projects have faced difficulties and cannot generate electricity by the schedule.
"The obstacles include the concession agreements which have not yet been reached and the study on the installation of a 150-kv transmission line from Nabong to Thinthene to be done by parties concerned."
The three projects of Nam Ngum III, Nam Theun I and Nam Ngieb I are investment proposals by GMS Lao, GAMUDA Berhad and KANSAI Electric Power.

Japanese firm to conduct hydropower study in Xekong

2008-05-12T23:59:00.000-07:00

The Department of Electricity agreed last week to employ a Japanese consulting company, New Jec Inc, to carry out a feasibility study of the Houay Lamphan Gnai Hydropower project in Xekong province in the south of Laos .

Mr Viraphonh Viravong ( left ) shakes hands with Dr Masayoshi Yamashita after signing the agreement. --Photo Sisay

The World Bank has provided the department with US$990,000 to hire the co mpany.

The agreement between the department and company was signed last Thursday at the Lao Plaza Hotel in Vientiane . It was signed by Director General of the Electricity Department Viraphonh Viravong and Managing Director of New Jec Inc Dr Masayoshi Yamashita.

The signing ceremony was witnessed by the Deputy Minister of Energy and Mines, Mr Somboun Rasasombath, and officials from both sides.

The study will begin on May 25 and the company has agreed to complete the work in eighteen months.

The hydropower project is located in Thateng district, and has a proposed installed capacity of about 60MW. The dam will generate electricity for both domestic use and export to Cambodia .

The dam site is situated in the Houay Lamphan stream, which flows into the Xekong River .

Initial surveys for a hydropower plant at this site have been conducted several times since 1970, but the information used to make the calculations was obtained from maps of the area.

Surveyors did not collect information in the field relating to specific geological data and the precise geographic location of the dam and watercourses, a press release from the department said.

From the end of 2005 until the start of 2006, the World Bank provided assistance for a power import and export study. This examined the feasibility of exporting hydropower from the south of Laos to Strung Treng province in Cambodia and the supply of hydropower to the southern Lao provinces.

The study also included a pre-feasibility study of the Houay Lamphan Gnai Hydropower Project.

To implement the project as a public-private partnership, in 2007 the Ministry of Energy and Mines asked for assistance fro m the World Bank to undertake a full technical feasibility study.

The selection of a consulting company to undertake the study began in May last year.

By Manichanh Pansivongsay
(Latest Update May 12, 2008)

Nam Ngieb 1 hydropower project helps resettlement

2008-04-30T08:11:00.000-07:00

(KPL) More than 170 families out of a total of 490 families living of the villages of Thavieng and Thathom, who are affected by the construction of Nam Ngieb 1 hydropower dam, are expected to resettlement this year.
These families are classified as poor and their living conditions are impacted by the construction of the Nam Ngieb hydropower dam in Xiengkhouang province.
The programme will provide settlement to 174 poor families this year.
In order to deal with the environment impact, Xiengkhouang province organised a meeting last week, to discuss environment impact from the Nam Ngieb 1 hydropower construction in Thavieng and Thathom areas.
Chaired by Mr Viengthanoum Phommachanh, Governor of Xiengkhouang province, the meeting was participated by 60 representatives from the construction companies of Kansai Electric Power Co. of Japan, Electricite du Laos and Thai Electricity Companies, and local residents who are affected by the construction project.
The meeting has agreed to relocate the 174 families in Thavieng and Thathom areas to the riverside area of the Nam Ngieb river.
The constructing companies will take responsibility for all costs and problems involved in the resettlement in the future.