Thai builder agrees to develop Laos’ 1,260-MW Xayaburi

Thailand’s second largest contractor, CH. Karnchang Public Co. Ltd., has signed an agreement with the government of Laos to develop the 1,260-MW Xayaburi hydroelectric project in Laos’ Xayaburi Province.

CH. Karnchang said November 27 that the 90 billion baht (US$2.6 billion) investment includes a dam and run-of-river hydro plant with 10 turbine-generators. Xayaburi (also spelled Xayabouri) is to generate about 7,400 gigawatt-hours a year, the company said.

About 10 percent of the power generated would be reserved for domestic consumption in Laos, with the rest sold to Electricity Generating Authority of Thailand.

In May 2007, CH. Karnchang signed a memorandum of understanding with the government to conduct a survey and feasibility study of the project. (HNN 11/14/07) A finding of feasibility led to the current agreement.

CH. Karnchang said it now will conduct a further study and prepare project details over two years. After that, it said, a concession agreement, construction, and other related contracts would be executed.

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