After construction was completed that began in December 2013, the Lao People’s Democratic Republic (Lao PDR) officially commissioned the US$218 million 86-MW Nam Phay hydropower project located in Xaysomboun province, near Vientiane.
During the plant’s inauguration ceremony held earlier this week, Lao PDR said the project will supply electricity for Xaysomboun and Xieng Khuang provinces, in particular Longchaeng district.
The Nam Phay scheme is an interbasin diversion project that has a 700-m head. It includes a concrete-face rock-filled dam that impounds Nam Phay River creating a reservoir, which has an area of 8.92 km2. The powerhouse is located on the right bank of Nam Leuk River and it contains two 43-MW Pelton turbines that send power through a 115-kV transmission line from Nam Phay switchyard to Thongkhoun II substation.
State-owned Vientiane Times reports China-based Norinco International Cooperation Ltd. (Norinco) owns 85% of the project and Electricite du Lao (EDL) owns the remaining 15%.
Nam Phay Power Company Ltd. (NPPC), secured investment, was responsible for construction and will operate the project.
NPPC registered in Laos on Nov. 25, 2013, through Hong Kong Frame Star Development Ltd., which is a wholly-owned subsidiary of Norinco.
In February 2014, under the 2012 Laos PDR National Power Development Program that has a goal to attain 90% of the country’s population being connected to electricity by 2020, NPPC and Lao PDR singed a 25-year plant concession.
Several significant hydropower projects currently being developed, under construction or receiving upgrades in Lao PDR will also help meet the goal.
Malaysian-based developer, Mega First Corporation Berhad, in October 2017 announced it secured loan facilities totaling $150 million for constructing the 260-MW Don Sahong hydropower project. Additional work ongoing at hydro facilities in the country includes: the 1,285-MW Xayaburi, 35-MW Xelanong II and 280-MW Theun-Hinboun.
Norinco in Lao PDR
Lao PDR is a target country for Norinco, according to the government.
In January 2017, Lao PDR commissioned the $50 million 23-MW Xeset III hydropower project Norinco developed, which is located at the junction of Xeset River between Saravan and Champassak provinces, about 750 km from Vientiane.
In 2009, according to Export-Import Bank of China, Norinco completed construction of the $135 million 76-MW Xeset II hydropower project in Saravan province.