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Chinese company to develop hydropower in Xaysomboun

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Chinese company to develop hydropower in Xaysomboun

cpwf.mekongApril 24, 2014Uncategorized, Vientiane Times

Vientiane Times, March 4, 2014

The Lao government has concluded a concession agreement for the Nam Phay Hydropower Project with the Nam Phay Power Company Ltd following the execution of various important agreements with the project sponsors and shareholders.

The concession agreement was signed in Vientiane between Deputy Minister of Planning and Investment, Dr Bounthavy Sisouphanthong and the company President, Mr Zhang Shi Ping, witnessed by the Energy Business Department Deputy Director General, Mr Sichad Boudsakittilath, the Xaysomboun provincial Planning and Investment Department Director, Mr Chanhthanom Vongsomchit and the company’s Director General, Mr Qi Yue.

The ceremony was attended by Deputy Prime Minister, Mr Somsavat Lengsavad, Chinese Ambassador to Laos, Mr Guan Huabing, Provincial Deputy Governor, Mr Phoykham Houngbounyouang various Lao government officials and company representatives.

The Nam Phay Hydropower Project is located in Xaysomboun province around 290km away from Vientiane, and forms part of the National Power Development Programme of Laos,

The dam site is located in a valley upstream of the Nam Phay River, a tributary of the Nam Ngum River and the powerhouse is located on the right bank of the Nam Leuk River.

The project is a medium-scale inter-basin diversion project with a high water head of 700 metres. Two Pelton turbine generators with a total capacity of 86MW shall be installed and the annual average power output will be 420 GWh.

The total investment of the project is about US$218 million, and the scheduled construction period is 42 months.

The commencement date is in December 2013 and the completion date is set for June 2017, when commercial operation will commence. The concession period is 25 years from the commencement of commercial generation.

The project is sponsored by Norinco International Cooperation., Ltd of China with shareholders including Fame Star Development Ltd and Electricite du Laos (EDL).

Laos is a target country for Norinco International Cooperation., Ltd. It has signed agreements with more than 20 countries worth a combined US$5.2 billion and completed the construction of 49 medium and large scale projects.

In August, the company completed the construction of the Xeset II Hydropower Project in Saravan province while works are continuing on the Xeset III Hydropower Project as well as the irrigation construction project from the Nam Theun II hydropower plant’s third water gate in Khammuan province.

The company is also running a feasibility study on the environmental and social impacts of irrigation projects at the first and fourth water gates downstream from the Nam Theun II hydropower plant.

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