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Work on Nam Ngiep 1 hydropower plant commences this month

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Work on Nam Ngiep 1 hydropower plant commences this month

MiaFebruary 4, 2015News from the Greater Mekong Region, Vientiane Times

Vientiane Times, 6 Oct 2014

The 290 megawatt Nam Ngiep 1 hydropower plant is set to start construction this month, with power production scheduled for early 2019, following the finalisation of the financial backing for the project last month, according to the company.

The company’s website stated that the financial support for the project was completed in the second week of September this year with different backers – the Asian Development Bank, Japan Bank for the International Cooperation (JBIC), Bangkok Bank and other banks from Japan and Thailand.

The cost for the project is around US$916 million with social and environmental costs budgeted at US$52.5 million.

Prior to the construction of the hydropower plant, the company met with the appropriate government sector in Vientiane last Friday to officially launch the Biodiversity Offset and Watershed Management programme, to make sure the environment is well-protected and managed.

Deputy Minister of Natural Resources and the Environment Ms Bounkham Vorachit co-chaired the meeting and said the protection of biodiversity and watershed management are priorities to lessen any negative impacts on the environment.

Deputy Governor of Xaysomboun province Mr Laopaoxong Navongxay, Deputy Managing Director of the company Mr Kasem Chudthong and other invited guests attended the meeting.

A watershed management committee in charge of overseeing environmental protection in the project areas of Borikhamxay and Xaysomboun provinces was also announced at the meeting.

The Nam Ngiep 1 Power Company (NNP1) is jointly owned by KPIC Netherlands, a subsidiary of Japan’s Kansai Electric Power, with 45 percent of the shares, EGAT International of Thailand with 30 percent and Lao Holding State Enterprise with the remaining 25 percent.

This 290 MW project with a generating capacity of 1,620 GWh per annum has entered an agreement to sell the majority of its production to Thailand with the balance being sent to the national power grid.

According to the company, the main dam and power station will generate 272 MW of power for export to Thailand.

About 6km downstream from the main dam, the re-regulating dam and power station will generate 18 MW of electricity for sale to Electricite du Laos (EDL) for contribution to the domestic grid. The project has a concession period of 27 years and once the concession period has ended. the plant will be transferred entirely to ownership by the Lao government.

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