Monday, 09/05/2011 11:54

Work begins on 88MW hydro project

Construction of the government-owned Houay Lamphan Nhai hydropower scheme officially kicked off last Thursday in Thateng district, Xekong province.

“It is an investment of about 1.6 trillion kip (US$206 million),” Electricite du Laos (EDL) Managing Director Khammany Inthirath said at the opening ceremony.

The ceremony was attended by Minister to the Prime Minister's Office Xaisengly Tengbiacheu and Xekong Governor Khampheuy Bouddavieng.

“By 2015 the dam will be generating electricity for supply to the southern provinces, where the demand for power is increasing rapidly,” Mr Khammany said.

Project Manager Vongsakoun Yingyong said the investment capital is being provided by the state-owned EDL through a loan from a Chinese bank. The loan is to be repaid within 15 years after the dam becomes operational.

It will take about 5 years to build the power station, which will have a capacity of 88 megawatts (MW) and generate 480 million KWh per year.

“We are already about 10 percent into the project because construction started in November,” Mr Vongsakoun said.

To date, the roads on site are almost complete while the stone paving and drainage for the roads are under construction, as is the Xekong substation.

The project contractor is the China Gezhouba Group Company Limited (CGGC).

Company representative Mr Qiu Xiaoping said “We expect construction to be completed six months ahead of schedule.”

The powerhouse will be equipped with two sets of impulse turbines of 44MW each.

CGGC is carrying out three projects in Laos.

The company is installing a northern transmission line “that costs about US$40 million with a loan from China,” said chief representative of the company in Laos, Mr Yang Jun.

CGGC also hopes to invest in other energy and infrastructure projects and intends to be a major Chinese construction company in Laos in the near future.

Economic and Commercial Counsellor to the Chinese Embassy to Laos, Mr Zhang Yu Cheng, said “I think CGGC will surely be successful in its entry into the investment market in Laos because it is one of several Chinese companies already doing well here.”

“I have seen many Chinese businesspeople attracted to the investment opportunities in Laos in various sectors including power generation.”

Laos will witness the opening of at least two new power plants each year between now and 2020. Currently it has 14 plants with a total capacity of 2,540MW.

vientiane times

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