Mega First signs agreement for development of Don Sahong hydropower project in Laos

Mega First Corp. Bhd. has signed an agreement with Laotian utility Electricite du Laos to regulate its participation in developing the 240- to 360-MW Don Sahong hydropower project.

Per the agreement, Ground Roses Ltd., Silver Acreage Ltd. and Electricite du Laos (EDL) would hold 79%, 1% and 20% shares in the Don Sahong Power Company Ltd., respectively. The company will operate as a unit under Mega First.

The company announced the creation of the new joint venture in June 2008, at which point reported that Dan Sahong plant would de developed under a 30-year concession.

Power generated by the plant is to be primarily sold to Laos and possibly Thailand, Vietnam and Cambodia, with rights to be transferred to the Laotian government upon its termination.

Mega First signed a project development agreement with the government of Laos in February 2008, following a feasibility study and memorandum of understanding signed by the parties in March of the same year.

The hydroelectric complex is to be located on the Mekong River near Khone Falls in Champasak Province.

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Michael Harris formerly was Editor for

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