Vientiane Time News, EGAT signs up for more hydropower from southern Laos.

EGAT signs up for more hyrdropower from southern Laos

Electricity Generating Authority of Thailand (EGAT) has agreed to purchase the bulk of the hydroelectricity to be generated by the planned Xe-Pian Xe-Namnoy hydroelectric project in southern Laos.

EGAT will purchase 90 percent of the power to be generated by the project, which will have an installed capacity of 410 MW, while the remaining 10 percent will be sold domestically.

The signing ceremony took place after the Lao government approved a 32-year land lease of 238 hectares in Champassak and Attapeu provinces last week, to allow the investors to develop the project. The initial investment cost to construct the dam is expected to be about 2,100 billion kip.

Chief Executive Officer of the Xe-Pian Xe-Namnoy Power Company, Mr Young-Ju Choi and EGAT governor Mr Sutat Patmasiriwat signed the purchase agreement on Wednesday in the capital Vientiane.

Four separate parties have entered into a joint venture to develop the project. The Lao government holds a 24 percent share, SK Engineering and Construction Company holds 26 percent, while the Korea Western Power Company and Thailand-based Ratchaburi Electric Generating Holding Public Company hold 25 percent each.

The project developers plan to commence construction in July, with commercial operation slated for February 2019, project officials told the Vientiane Times recently. In his remarks at the yesterday signing ceremony, Mr Young-Ju Choi alluded to the fact the agreement was the culmination of efforts stretching across the Asia-pacific region.

He pointed out how projects such as the Xe-Pian Xe-Namnoy are instrumental in driving economic development in Laos and the region as a whole. As the battery of Asean, Laos is central to driving regional economic development, especially within the hydropower sector, Mr Choi said.

Meanwhile EGAT Governor Mr Sutat noted that the mutual cooperation under this project will definitely contribute to the enhancement of power system reliability both in the south of Laos and northeastern Thailand.

In August 2006 , the government, represented by the Ministry of Planning and Investment, and the project developers, represented by the SK Engineering and Construction Company, signed a memorandum of understanding to carry out a feasibility study on the project. Following the completion of the study, the two parties signed an agreement to develop the project in November 2008.

The Ministry of Natural Resources and the Environment has already approved environmental and social impact assessment reports in regards to the dam. The developers are committed to achieve the highest standards in environmental and social management and mitigation, according to a press release distributed at the ceremony.

The project will add fuel to the governments efforts to turn Laos into the battery of Asean, maximising its rich abundance of natural rivers to develop hydroelectric dams and power up the region with clean, non-polluting energy. Laos has great untapped potential to develop hydroelectric dams - one of the cleanest sources of energy generation in the world. In total, the country has the potential to generate about 28,000MW of electricity if this potential is maximised. Currently, existing hydropower plants in Laos have an installed capacity of more than 3,000 MW.

Yesterdays signing ceremony was attended by Deputy Minister of Energy and Mines, Mr Viraphone Viravong, Deputy Minister of Planning and Investment Dr Bounthavy Sisouphanthong, Deputy Minister of Natural Resources and Environment Dr Akhom Tounalom, Governor of Champassak province, Mr Sonsay Siphandone and Deputy Governor of Attapeu province, Ms Watsady Khotyotha.