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Construction of US$3.7b lignite power plant officially begins
Hongsa Power Company has officially begun construction of a US$3.7 billion lignite-fired power plant amid increasing demand for power both in Laos and neighbouring nations.
The Lao-Thai joint venture held a groundbreaking ceremony for the project on November 18 in Hongsa district, Xayaboury province, a year after work began on the 1,878 MW power plant, the largest electricity generating facility in Laos.
Deputy Prime Minister Asang Laoly, Minister of Energy and Mines Soulivong Daravong, Xayaboury provincial Governor Dr Lien Thikeo, Hongsa Power Company Ltd (HPC) Chairman Noppon Milintanggoon and a number of Lao and Thai officials attended the event.
The 1,878MW power plant is scheduled for completion in 2016, and will contribute to Laos' aim of becoming the “battery of Asean”.
1,500MW of the electricity generated will be sold to the Electricity Generating Authority of Thailand (EGAT) and 100MW to Electricité du Lao (EDL). The project concession period is 25 years.
According to a press release from the Hongsa Power Company, the Lao-Thai joint venture will embrace social and environmental responsibility in all aspects of its operations.
“The company will strictly adhere to internationally accepted best management practices and the World Bank's environmental standards as it wants to strive to make the Hongsa project a prototype model mining and lignite-fired power plant,” the Company said as quoted in the media statement.
The company also said it had received warm acceptance and strong cooperation from all parties in building the power plant.
Hongsa Power Company was founded in 2009 as a 40:40:20 joint venture between Banpu Power Limited (BPP), Ratchaburi Electricity Generating Holding Public Company Limited (RATCH), and Lao Holding State Enterprise (LHSE).
The company's main task is to operate the Hongsa Mine Mouth Power Plant project, which when completed in 2016 will be Laos' largest-capacity power plant, providing a new source of energy for both Laos and Thailand.
Thailand has agreed to purchase 7,000MW of electricity by 2020 as it experiences increasing demand for energy due to rapid economic growth. So far Laos has sold about 1,300MW of power to Thailand.
vientiane times
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