Laos to have 4 hydropower projects in 2 northern provinces

Laos will have four hydropower development projects in two northern provinces.

A contract and MoU have been signed between Electricite du Laos and Sinohydro Corporation Ltd of China

Among the documents signed were an engineering procurement and construction contract for the Nam Khan 3 hydropower project in Luang Prabang province, and a tariff MOU for the Nam Ou 2, 5 and 6 hydropower projects in Phongsaly and Luang Prabang provinces.

“The Lao government will invest about 1 trillion kip (US$127 million) in the project through a low interest loan from the Exim Bank of China,” EDL representative Mr Komonchanh Phet-asa said, adding that the project will provide farmers in Luang Prabang with more access to water for irrigation.

The Nam Khan 3 dam, located in Xiengngeun district, will have an installed capacity of 60MW and will be able to generate 241 million kWH of electricity per year. It will take about 3 and a half years to build, with developers expecting it to be fully operational in 2016.

Nam Ou projects 2, 5 and 6 will have a combined installed capacity of 540MW and will be able to generate 2,092 million kWH of energy per year.

The energy generated from the three power plants will be sold to EDL starting in 2018, according to Mr Komonchanh.

The latter three projects are expected to require investment of about 8 trillion kip or US$1,000 million with EDL holding 15 percent of shares.

For the source of this story, click here.

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