Mega First Corp. Bhd. and IJM Corp. Bhd. formed a joint venture June 10 to develop, own, and operate the Don Sahong hydroelectric project, expected to total 240 to 360 MW, on Laos’ Sahong River.
Mega First told the Kuala Lumpur Stock Exchange it signed a shareholders agreement with IJM providing for Mega First to own 70 percent of the venture and IJM to own 30 percent. It said the special purpose company will hold shares in a Don Sahong development company along with the government of Laos and other investors.
Mega First signed a project development agreement with the government of Laos in February, following a feasibility study memorandum of understanding that the parties signed in March 2006 for the project, planned at Khone Falls in Champasak Province. (HNN 2/22/08)
Mega First said the new joint venture company will have an authorized share capital of 3 million shares at US$1 each and an initial issued and paid-up share capital of 10,000 shares at US$1 each.
Don Sahong is to be developed under a 30-year concession, selling power mainly to Laos and possibly to Thailand, Vietnam, and Cambodia. At the end of the concession the project is to transfer to the Laotian government at no cost.
Don Sahong is to include a run-of-river dam, head pond, powerhouse, dedicated transmission line, and associated infrastructure near the Cambodia border, 150 kilometers south of Pakse, the capital of Champasak. Commercial operation is set between 2013 and 2015.