Vientiane Times, April 21, 2015 Nam Khan 2 hydropower plant expects to start energy generation within the next five months after construction began in 2011 in Luang Prabang province.The project conducted an impoundment ceremony on April 18 that took place on a platform at the entrance to the diversion tunnel, attended by Deputy Prime Minister Somsavat Lengsavad and officials from the province, Energy and Mines Ministry and Electricite du Laos (EDL). The ceremony was to begin water storage in the reservoir to supply the power plant for electricity generation in Xieng Ngeun district, according to a press release from EDL yesterday. Some of many million cubic metres of water will be used for energy generation with the rest going towards agricultural enterprises and other uses. EDL Managing Director Mr Sisavath Thiravong said in his statement that Nam Khan 2 was a government project that was handed over to EDL to operate and manage. The project involves a total investment of about 2.4 trillion kip (US$308 million) that has been borrowed from Exim Bank of China. The Nam Khan 2 power plant project is on the Khan River, with commercial operation expected to commence this year. Construction is being carried out by a Chinese company, Sinohydro Corporation. The project has an installed capacity of 130 megawatts and will be able to generate 558 GWh of electricity per year. The electricity generated will be transmitted via a 115kV transmission line to the substation in Xiengngeun district to supply the northern provinces and Vientiane. Nam Khan 2 is a large power plant project that will supply electricity for local consumption. It will particularly help people living in the northern part of Laos or remote areas who are still waiting for el ectricity to be supplied to their villages. The project’s large reservoir will also be developed as a major tourism site in the future helping to improve living conditions of people in the area. The project states it will lessen environmental impacts with gas, petroleum and energy producer Gazprom Marketing and Trading Singapore Pte., Ltd agreeing with EDL on an Emissions Reduction Purchase Agreement in 2012 to buy carbon credits from the project via a clean development mechanism. Laos still has many other hydropower plants with the potential to sell carbon credits, and energy developers have already been contracted to sell carbon to other overseas companies. Twenty-seven power plants are currently operational with installed capacity of about 3,304MW in Laos. Laos is aiming for total installed capacity of about 12,000MW by 2025, a ministry report has noted. The abundant resources of the Mekong River and its tributaries give Laos the potential to produce more than 25,000MW.