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2nd phase of China-constructed cascade hydropower plant kicks off in Laos

Xinhua, April 29, 2016 Adjust font size:

The second phase of the construction of the Nam Ou Basin Cascade Hydropower development project kicked off on Thursday night in Laos.

The construction of the plants at the first, third, fourth and seventh level dams is conducted after the success of the construction of plants at the second, fifth and sixth level dams which have been put into operation and generated electricity.

The event marks a new milestone in the construction of the Laos' first full basin cascade hydropower project constructed by PowerChina Resources Ltd. in BOT (Build-Operate-Transfer) model.

The construction of the seven-dam hydropower plant is divided into two phases with investment of 2.8 billion U.S. dollars. Total installed capacity of the plant is 1,280 MW and annual generating capacity of some 5,000 GWh.

The first phase of the project was completed and has been put into operation since 2016. The second phase is expected to complete for operation in 2020.

Khammany Inthilath, Lao Minister of Energy and Mines, addressed the ceremony on Thursday that the second phase of the project has been included among major infrastructure projects for poverty reduction of Laos.

The project is expected to push the socio-economic development of Luang Prabang and Phongsaly provinces and to improve living standards of local residents, said the official.

This is a demonstration of Laos-China cooperation in energy area, showing the friendship cooperation between the two countries, Khammany Inthilath said.

Li Baoguang, Consul General of China in Luang Prabang, said the year 2016 marks the 55th anniversary of diplomatic establishment between China and Laos. The start of the project's second phase is the best commemorative activity.

Du Chunguo, General Manager of Powerchina Resources Ltd., for his part, pledged to coordinate with relevant agencies and parties to well-fulfill the work.

According to the introduction, concession period of the project is 29 years after the project entered commercial operation. All electricity generated from the project will be sold to Laos' national electricity company, the Electricite du Laos.

After completion, the project is expected to enhance the upgrade of power grid and power transmission in northern Laos, meet the power demand of the country and to boost Laos' electricity exports and regional electricity integration process. Enditem