The Vietnam-backed builder of the 250-MW Sekamang 3 hydroelectric project in Laos has signed a US$42.36 million contract for electrical equipment and technical services.
State-run Vietnam News Agency said Sekamang 3 Co. Ltd., a unit of Vietnam-Laos Electrical Joint Stock Co., signed the contract with VA Tech Hydro GmbH of Austria on April 18 in Hanoi.
VA Tech Hydro was chosen over four other bidders to supply turbine-generators for the US$273.1 million project in Laos’ Sekong Province.
Song Da Corp. began construction of Sekamang 3 in 2006. (HNN 9/19/07) The plant is to begin operating in 2010, exporting 1 billion kWh per year to Vietnam.
Vietnam’s government authorized a US$1 billion international bond issue in 2007 to finance investments including Sekamang 3. The year before, the Bank for Investment and Development of Vietnam agreed to lend 1.15 trillion dong (US$71.7 million) to the project.
Sekamang 3, also spelled Xekaman 3, is a foreign investment project by Vietnamese enterprise being built on a build-operate-transfer basis.