Deal #6596 Version #76267

PDD for Nam Ngiep II Hydropower Project

2016-12-14

Contains information about the Project design of the investment.

2012-02-29

Vientiane Times report from 29/02/2012: "Construction of the Nam Ngiep 2 hydropower plant in Xieng Khuang province is about 10 percent complete, after the project officially got under way in December. The work is going faster than the scheduled progress by about 2 percent, according to a press release issued following an inspection on Sunday by Xieng Khuang provincial Governor Prof. Dr Somkot Mongnomek and two Energy and Mines Deputy Ministers, Mr Viraphonh Viravong and Mr Khammany Inthirath. The Governor highly praised the progress and quality of the construction, the press release noted. Construction of the hydropower plant began last October and the project is scheduled for completion at the end of 2015. So far, about 95 percent of te mporary facilities have been completed, including working faces for the main dam, a diversion tunnel, a headrace tunnel, a tributary tunnel, a tributary dam and power house, the press release noted. The dam is located in Phaxay and Khoun districts, about 30km southeast of Xieng Khuang provincial capital. It is being developed by the Nam Ngiep 2 Power Company Limited, which is a joint venture between China International Water & Electric Corporation (CWE) and Electricite du Laos (EDL). CWE President Mr Wang Yu said at the groundbreaking ceremony that the project involves a total investment of 2.7 trillion kip (US$345 million). CWE holds a 90 percent share in the company and EDL holds a 10 percent stake. The dam will have an installed capacity of 180MW and will generate 723 million kWh per year. EDL will buy all the electricity generated to feed into the national power grid. EDL Managing Director Mr Sisavath Thiravong said the plant is expected to earn revenue of about 348 billion kip (US$43.38 million) per year. The Nam Ngiep 2 project will mainly supply provinces in the north- east, as this region still does not have enough electricity to meet local demand. Xieng Khuang provincial Deputy Governor Mr Khampiene Sinuanethong said recently that only 62 percent of all households in the province have access to electricity. In addition to electricity, the power plant will provide benefits in the areas of flood control, irrigation, transportation and tourism, which will promote local social and economic development. The developers signed a project concession agreement with the Lao government last August. The concession period is 25 years, starting from the date of commercial operation. CWE entered the Lao hydropower market in 1996. They have since invested in the Nam Leuk, Nam Mang 3 and Nam Lik 1-2 dams. They have also invested in the installation of power transmission lines and substations."

Resettlement Lessons from the Nam Ngiep II Project in Lao PDR

2016-01-12

Contains information about the local communities that were affected by the investment and how the issues had been resolved.

2014-03-11

Vientiane Times report from 11/03/2014: "An additional eight hydropower plants will begin commercial operation next year while another five are scheduled to begin generation in 2016, according to an energy and mines sector report. [...] The Ministry of Energy and Mines Ministry's Planning and Statistics Division reported yesterday that the eight plants that will start energy generation next year are Xekaman 1, Hongsa Mine-Mouth Power Project, Nam Ngiep 2, Nam Beng, Nam Kong 2, Nam Khan 2, Houay Lamphannyai and Nam Hinboun. [...] Nam Ngiep 2 in Xieng Khuang province was 47.6 percent complete in January after the investors, Electricite du Laos (EDL), which holds 20 percent and CWE of China 80 percent, signed a concession agreement with the Lao government in 2011. The plant will have an installed capacity of 180MW and will be able to generate energy of 273GWh per year for local consumption. [...]

Nam Ngiep 2 Hydropower Project

Contains details about the investment such as its place, construction time, and details about the award.

2015-10-29

Vientiane Times report from 29/09/2015: "Nam Ngiep 2 to begin commercial operations this week A major joint venture investment hydropower project between Laos and China, Nam Ngiep 2 in Xieng Khuang province, will officially meet its commercial operation date on Friday after almost four years of construction. The project has an investment cost of about 2.81 trillion kip (US$345 million), with Electricite du Laos (EDL) holding 10 percent and Chinese company WCE holding the other 90 percent. The new plant has an installed capacity of 180 megawatts (MW) and the generated electricity will contribute to the national power grid for local supply, according to the website of the Ministry of Energy and Mines. Nam Ngiep 2 has three generators that have an installed capacity of 60MW per unit, according to a report from a project official last Friday. Unit 3 began commissioning tests on August 30 with unit 1 starting testing on September 14. Unit 2 started last Thursday, September 24, the report noted. The developers signed a project development agreement on Nam Ngiep 2 with the Lao government in August 2010 and a concession agreement with the government a year later, August 2011. The power purchase agreement was signed between Nam Ngiep 2 and EDL in October, 2011 and construction work started in November of the same year. The project also has added expenditure for resettlement, environment and social support including infrastructure construction and relocation and compensation worth about 51 billion kip (US$6.25 million), livelihood development over US$390,000, compensation for temporary impact above US$250,000, social support of around US$100,000 and environment monitoring (biomass clearance and water quality analysis) of more than US$660,000. The Lao government has to date signed Memorandums of Understanding (MoU) or is undertaking research studies on more than 70 hydropower projects. Some of these are either operational or under construction. Laos has also signed an MoU to provide 7,000MW of energy after 2015 to Thailand, and 3,000MW of electricity from now until 2020 to Vietnam. The representatives of the energy sectors in Laos and Cambodia have signed a purchase agreement for the supply of about 5MW by the end of 2009. However, to date there is no MoU to officially certify the terms of the sale. The government intends to use the profi ts from hydropower sales to fight poverty in the country. In recent years, the energy sector has played a part in social development, notably in the fields of education, human resources, health care, and job creation. [..]"

2015-10-05

Vientiane Times report: "The hydropower investment project between Laos and China, Nam Ngiep 2 in Xieng Khuang province officially opened last Friday after over four years of construction. The project cost about 2.81 trillion kip (US$345 million), with Electricite du Laos (EDL) holding 10 percent and China International Water & Electric Corp (CWE) holding the other 90 percent. CWE is the subsidiary company of the China Three Gorges Corporation. The new plant has an installed capacity of 180 megawatts (MW) and the generated electricity will contribute to the national power grid for local supply. The developers signed a project development agreement on Nam Ngiep 2 with the government in August 2010 and a concession agreement with the government a year later, August 2011. The power purchase agreement was signed between Nam Ngiep 2 and EDL in October, 2011 and construction work started in November of the same year. The project also has added expenditure for resettlement, environment and social support including infrastructure construction and relocation and compensation worth about 51 billion kip (US$6.25 million), livelihood development over US$390,000, compensation for temporary impact above US$250,000, social support of around US$100,000 and environmental monitoring (biomass clearance and water quality analysis) of more than US$660,000. During the opening ceremony, Minister of Energy and Mines Dr Khammany Inthirath said Nam Ngiep 2 project was part of the country’s 2016 electricity system development plan in line with improving industry and modernising the nation. "We are so grateful for the completion of this project because it's very important to help us with basic socioeconomic development, especially commercialising agriculture to allow people in rural areas to reduce poverty", he said. The opening ceremony took place in Xieng Khuang province and was attended by Deputy Prime Minister Mr Somsavat Lengsavad, Minister of Energy and Mines Dr Khammany Inthirath, Deputy Governor of Xieng Khuang province, Dr Bouasone Sinuanthong, President of the China Three Gorges Corporation Mr Wang Lin, and other participants. [..]"