Developer consortium SouthEast Asia Energy Ltd. awarded a contract August 28 to Mitsui &Co. and Toshiba Corp. of Japan to supply equipment to the 615-MW Nam Ngum 2 hydroelectric project being built in Laos.
The 11 billion yen (US$93.8 million) contract calls for the Japanese firms to supply and install three 205-MW turbine-generators. Mitsui said commercial operation of the US$850 million project is planned for the end of 2010.
SouthEast Asia Energy, a subsidiary of Thai construction firm CH Karnchang Public Co. Ltd., entered a concession agreement with the government of Laos in March. (HNN 4/3/06) The deal provides for construction and operation of the plant on the upper Nam Ngum River about 90 kilometers from Vientiane.
Mitsui said the agreement strengthens its relationship with CH Karnchang, one of the largest general construction companies in Thailand. It said the deal also shows Japanese hydro equipment suppliers can compete for business in Laos and Thailand.
Laos granted SouthEast Asia Energy concession rights for a total of 32 years, including five years for construction, two years for testing, and 25 years for electricity sales to Thailand. The developer and state-run Electricity Generating Authority of Thailand are negotiating a power purchase agreement and related financing agreements.