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April 15th, 2011
Via The Vientiane Times, a report that a Chinese company plans to build seven hydropower plants along the Nam Ou River, one of the largest tributaries of the Mekong. As the article notes:
“…Deputy Minister of Planning and Investment Thongmy Phomvixay and Sinohydro Ltd Deputy Managing Director Sen De Cai signed a master plan for the Nam Ou hydropower development project on Monday.
Under the plan, Sinohydro will build two major reservoirs and seven hydropower plants along the 475 km Nam Ou River. The river rises in China and runs through Phongsaly province before entering the Mekong River at Pak Ou in Luang Prabang province.
Once completed, the seven power stations will have a total production capacity of 1156MW, generating 5 billion kilowatt hours a year. The power will be sold to Electricite du Laos for domestic consumption – specifically in the north of the country – and to Thailand, Vietnam and China.
Sinohydro will initially build three power plants along the Nam Ou River. The construction of the remaining power plants will depend on the demand for electricity in Laos.
According to a senior official from the Ministry of Planning and Investment’s Investment Promotion Depart-ment, Sinohydro will use the master plan as a framework for signing agreements with the government to develop power plants in the future.
Sinohydro cannot build all seven power stations at the same time due to the high construction cost and low demand for electricity. The Lao government is required to sign the master plan so the company can begin development along the Nam Ou River.
Sinohydro says it is negotiating a concession agreement with the Lao government and hopes to finalise the document by the middle of this year. The company also says it expects to sign a finance agreement with Electricite du Laos and China Development Bank this month.
The developer signed the project agreement with the Lao government in 2007 and renewed it in early 2010. The company presented a project feasibility report to the government at the end of 2010.
According to the feasibility study, the Nam Ou will be able to supply enough water to power the plants as it runs through mountainous forested areas and valleys and has 11 major tributaries. Warm moist air from the Bay of Bengal and the South China Sea also bring much rainfall to the river area.