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25 August 2009

Laos’ Nam Theum 2 to supply power to Thailand by end 2009

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Investors of the Nam Theum 2 hydropower dam project confirmed they will start supplying electricity to Thailand by the end of 2009 as planned, reported VOA news online.

The dam developers have successfully tested the performance of the electricity generator and managed to link its power transmission line to that of the Electricity Generating Authority of Thailand (EGAT) without any problem.

Under a power purchasing agreement between the Lao government, NT2 developers, and EGAT, the NT2 dam will supply 995 megawatts of electricity to EGAT for 25 years. During that period, the Laotian government stands to receive 25 percent or about $2 billion worth of concession fees, taxes as well as dividends from the project's income and profits as a joint investor. Other investors expect to earn $3 billion from the hydro power export.

The project reportedly cost approximately $1.45 billion, which includes construction and administration of the project's environmental and social impacts management.

The World Bank had agreed to act as a guarantor of foreign loans for investors because the project meets international standards of protection of social and environmental impacts, and at the same time will generate income for the government to spend on other development projects to alleviate the country's poverty.


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