Despite the global economic recession, plans for nine power development projects in Laos run by foreign investors and the Lao Holding State Enterprise (LHSE) are progressing well. The projects are the Hongsa lignite-fired plant, and the hydropower plants of Nam Theun 2, Nam Ngiep 1, Xekong 4, Xekong 5, Nam Kong 1 and Xepien-Xenamnoy. LHSE General Manager Dr. Somboune Manolom said the nine projects have a total investment cost of about 83.4 trillion kip (US$ 9.8 million), including foreign shares of US$ 2.100 million and LHSE’s holdings of about US$650 million. The Hongsa project is progressing well after the signing of agreements with the Lao government and a memorandum of understanding on energy prices with the Electricity Generating Authority of Thailand (EGAT) recently. The purchase agreement is between the project and Electricite du Laos, the primary supplier of electricity in Laos. The Nam Ngum 3 project signed a memorandum of understanding on energy prices with EGAT last month. It is also progressing well, with excavations for the powerhouse, road construction and upgrading currently underway. LHSE intends to obtain a loan from the ADB to purchase shares in this project, a matter which is currently under discussion. Nam Theun 1 is now waiting for a reply from EGAT on proposed prices for the power it will generate. The Nam Ngiep 1 project is in negotiations over a concession agreement and is preparing to sign an agreement with the government soon. The developers of Xekong 4, Xekong 5, and Nam Kong 1 have prepared agreements to be signed with shareholders and for concession arrangements. The Nam Theun 2 project is complete and started energy generation last month. The project is set to generate income of about US$ 900.000 per day and expects to start supplying energy to Thailand by the end of this month. The LHSE will also get a dividend of about US$ 700 million over that time, or about US$ 28 million per year.
Source: Vientiane Times
