Theun-Hinboun Power strikes loan deal for expansion project

(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

(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

(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

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

(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.