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Nam Theun 2 power sales boost GDP
Nam Theun 2, the largest hydroelectric power plant in Laos, has generated more than US$210 million in revenue since operations began in early 2009.
According to an annual report from Lao Holding State Enterprise, which holds a 25 percent stake in the US$1.3 billion project, the Nam Theun 2 Power Company earned US$203 million from the sale of electricity to Thailand from March 2009 to December 2010.
The company also earned US$10 million from the sale of electricity to Electricite du Laos for domestic consumption between August 2009 and December 2010, according to the report. The report was distributed during the annual conference of the state-owned enterprises earlier this year.
The report also highlights that the Lao government collected US$9.13 million in royalties from the power plant over the same time period.
The government expects to receive US$13 million in dividends from the power plant this year.
The commercial operation of Nam Theun 2 drove Lao GDP growth from early predictions of 7.6 to 7.9 percent in the 2009/2010 fiscal year. The power plant speeds the flow of foreign currency into Laos which underpins the value of the kip and stabilises the exchange rate.
According to the Nam Theun 2 Power Company, the Lao government will receive average revenue of US$80 million a year from the 1,070 MW plant, over the first 25 years of commercial operation.
The power plant will be handed over to the Lao government after 25 years of commercial operation.
The government has made commitments to project financers including the World Bank and Asian Development Bank (ADB) to use the income from the project to combat poverty, not only in Khammuan province where the dam is located, but across the country.
A committee has been established to manage the use of the revenue to ensure that poverty reduction projects are carried out as promised.
The World Bank has described Nam Theun 2 as a world class hydropower plant. The project not only generates electricity but also irrigates rice plantations and other agricultural developments in Khammuan province.
A large number of families previously living in the project area were relocated to new settlements where they were given new homes and provided with sustainable occupations.
The government aims to turn Laos into “the battery of ASEAN” as it has the potential to develop hydropower from both the Mekong and its many tributaries.
At present, Laos has 16 operational power plants. The government has granted permission for investors to study and plan for 73 more power plant development projects around the country.
Nine of the power plant projects have received concessions from the government and some are now at the construction stage.
vientiane times
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