Govt boosts investment in electricity power plants


Photo: Namtheun, Laos

The Lao government holds investments in five major electricity power plant projects around the country, according to a senior government official.
 

General Manager of Lao Holding State Enterprise Dr Somboune Manolom said on Friday that the company represents the government's shareholding in four hydropower plants - Nam Theun 2, Nam Theun 1, Nam Ngum 3, Nam Ngiep 1 - as well as a lignite based power plant, Hongsa Lignite.
 

He said the Lao government would invest US$320 million in the five projects, with a total electricity generation capacity of 4,100 MW. The total outlay for the projects will be around US$5,900 million.

The company held a meeting at Don Chan Palace Hotel in Vientiane on Friday to review its 2007 achievements and develop a work plan for 2008. Minister of Energy and Mines Dr Bosaikham Vongdara and Director General of Department of Energy Promotion and Development Xaypaseuth Phomsoupha attended the event to award labour medals to outstanding officials of the company.

Nam Theun 2

According to Dr Somboune, the Lao government holds a 25 percent share in the US$1.2 billion Nam Theun 2 project on the Nakhai Plateau, Khammuan province. Other shareholders in the venture are Electricite du France (France) with 35 percent, EGCO ( Thailand ) with 25 percent, with the remainder belonging to the Ital–Thai Development Public Company Limited.

This project is now 79.1 percent complete and is expected to start generating electricity for sale to Thailand in late 2009. The Lao government expects to earn US$28 million in profit shares from the project; it will also earn US$2 billion throughout the 25 year concession period from taxes and other charges.

Nam Theun 1

The Lao government holds a 20 percent share in the Nam Theun 1 hydroelectricity power project in Borikhamxay province, along with Gamuda ( Malaysia ) and EGCO ( Thailand ), who both hold 40 percent shares. Investments in the project total US$759.68 million. The 523 MW capacity plant will be completed in 2014.

Nam Ngum 3

The Lao government holds a 23 percent in the Nam Ngum 3 project; other shareholders are GMS Power ( Thailand ) with 27 percent, RATCH ( Thailand ) with 25 percent, and Marubeni ( Japan ) with 25 percent. The US$779.6 million project is located in Vientiane province with a generating capacity of 440 MW; it is expected to generate electricity for sale by 2014.

Nam Ngiemp 1

The Lao government holds a 25 percent share in the Nam Ngiemp 1 project, together with Kansai ( Japan ), which holds a 45 percent share, and EGAT International ( Thailand ) with a 30 percent share. The cost of the project is around US$477million. The 282 MW plant is expected to produce electricity for sale by 2014.

Hongsa Lignite

The Hongsa Lignite project is divided into two different investment types; mining and electricity generation.

The first will establish and operate the Phu Fai Mining Company which will mine lignite to supply the power plant. The Lao government holds a 25 percent share in this project, with RATCH ( Thailand ) and BANPU each having a 37.5 pe rcent stake.

The second type of investment is to create and operate the Hongsa Power Company. The Lao government holds a 20 percent share of this venture, with BANPU ( Thailand ) and RATCH each holding 40 percent. The overall investment of the project is around US$2.7 billion. The 1,800 MW electricity power plant project is scheduled for completion in 2013.

By Ekaphone Phouthonesy
Vientianetimes