Small-scale hydro plant to boost Lao national power grid

National Consulting Group will establish a power company in Vientiane and an office branch in Saravan province to operate the Houay Por hydropower plant construction project.

“We will launch the company and office branch within the next few weeks,” said Mr Somdet Meunsaveng, president of NCG, a local, small-scale energy developer.

The establishment of the company and office branch follows the signing of a Project Development Agreement between the group and Saravan provincial authorities last week.

Mr Somdet said the group would collaborate with a construction company from South Korea on the construction of the plant and ensure that the design meets international standards.

The project will require an investment of about 134 billion kip or US$16.7 million, with construction to start by the end of this year and be completed in 2015. The project site is located in Lao-ngam district.

The plant will have a generating capacity of 5 megawattsand will generate about 35 to 60 kWh per year, “using two generators that we plan to import from France,” Mr Somdet said.

The electricity will be sold to Electricite du Laos for distribution through the national power grid. “However, we have not negotiated a purchase price or tariffs yet,” Mr Somdet said.

Saravan provincial Energy Section Head Mr Sangthong Inthapakdy said the group and EDL would complete negotiations on a power purchase price within three months of the signing of the PDA.