Deal #6602 Version 76308 Version 87709
Size under contract (leased or purchased area)
  • [2006-12-01, current] 7640.0 ha
  • [2006-12-01, current] 7640 ha
Comment on investment chain
"The Hongsa project is a coal plant and mining project in Xayaboury Province, Laos, that includes a lignite coal mine, an 1878MW coal-fired power plant, a limestone quarry and two dams. The coal-fired power plant is the first in Laos and the lignite mine is one of the largest in Southeast Asia." from: https://earthrights.org/what-we-do/extractive-industries/hongsa-power-plant-and-mining-project/
"The Hongsa project is a coal plant and mining project in Xayaboury Province, Laos, that includes a lignite coal mine, an 1878MW coal-fired power plant, a limestone quarry and two dams. The coal-fired power plant is the first in Laos and the lignite mine is one of the largest in Southeast Asia." from: https://earthrights.org/what-we-do/extractive-industries/hongsa-power-plant-and-mining-project/ Ratch holds a 40% stake in the Hongsa power plant, with 40% held by Banpu and the government holding the remainder. Source: Bangkok Post According to the Hongsa Power website, "A total finance package worth US$3.71 billion in capital commitments to HPC was proportionately contributed by 9 Thai commercial banks – namely, Bangkok Bank, Siam Commercial Bank, Krungthai Bank, Government Savings Bank, Kasikornbank, Export-Import Bank of Thailand, Bank of Ayudhya, Thanachart Bank, and TMB Bank. Source: Global Energy Monitor
Name of community
Kiw Ngiew village and a part of Pang Bong Village in Ngeun district, Xayyaburi province (Phase III expansion of the project). ,
Source: RFA
Community reaction
Mixed reaction
Comment on community reaction
In May 2013 it was reported that authorities in northern Laos had barred non-governmental organizations from meeting with villagers being relocated for the plant. The NGOs said they are trying to inform residents about their compensation rights and the full impact of the project. Nearly 2,000 people were moved to new locations. Source: Global Energy Monitor Within the new phase of expansion (Phase III), many villagers are being relocated to the new areas. They were worried about their lives once they move to new relocation site as well as worried of low compensation. Source: RFA
Comment on displacement of people
There are three phases of the project. Two phases are completed. Currently, it is beginning phase III. According to the report from RFA on 6th October 2021, hundreds of families were forced to move for Hongsa Lignite Power Plant Expansion. Two villages affected by the Phase III Expansion are Kiw Ngiew village which is the home to 115 families, while 18 more households live in Pang Bong village. Source: RFA
Comment on negative impacts for local communities
"The project risks releasing heavy metals into local water supplies and damaging the wilderness that local communities rely on for their food and livelihoods. The project also poses significant transboundary impacts. A set of transmission lines from Hongsa into Nan province, Thailand have already been built through sensitive forest areas. Two more sets of power lines are set to be built in coming years. Additionally, the operation risks contaminating lakes that extend into Thailand with mercury. As with any coal-fired power project, it also contributes significantly to climate change and represents a threat to human rights and climate justice. The environmental impact assessment for the project involved no meaningful consultation with the affected communities and failed to assess any transboundary impacts." -- EarthRights
"The project risks releasing heavy metals into local water supplies and damaging the wilderness that local communities rely on for their food and livelihoods. The project also poses significant transboundary impacts. A set of transmission lines from Hongsa into Nan province, Thailand have already been built through sensitive forest areas. Two more sets of power lines are set to be built in coming years. Additionally, the operation risks contaminating lakes that extend into Thailand with mercury. As with any coal-fired power project, it also contributes significantly to climate change and represents a threat to human rights and climate justice. The environmental impact assessment for the project involved no meaningful consultation with the affected communities and failed to assess any transboundary impacts." -- EarthRights The Lao government approved the Environmental Impact Assessment (EIA) and environmental management plan for the project conducted by the TEAM Consulting Engineering and Management Company in November 2007. Construction started amid criticism from civil society (despite the significant barriers to civil society expression in Laos) based on the lack of Public Participation, IFAC, and concerns regarding the technical quality of the EIA. Source: Impact Assessment and Project Appraisal, Ashijya Otwong & Tanapon Phenrat Project risks include water pollution, damage to wilderness, damage to local livelihoods, air pollution and climate change. Source: Asia Pacific Viewpoint 2022/ s ASEAN ready to move to multilateral cross-borderelectricity trade? Hongsa Company said that the strong earthquakes occurred in Hongsa district of Xayaboury province said that the incident caused only minor damage to some buildings at the plant. No deaths or injuries have been reported. Source: Thai PBS World
Comment on promised benefits for local communities
Hongsa Power signed a Memorandum of Understanding with the Polytechnic College in Vientiane for education development through technical training and practical courses.
Hongsa Power signed a Memorandum of Understanding with the Polytechnic College in Vientiane for education development through technical training and practical courses Each home plot, measuring 450 square meters, at resettlement villages, has been promoted to involve both on-farm and off-farm activities as a short-term income source. The approximate 1,200-hectare area was also developed for farmland developments for project affected persons. Source: company source
Comment on materialized benefits for local communities
In 2018, the company gave 40 scholarships worth 120 million kip for secondary school students in Ngeun, Hongsa, and Xienghon districts.
In 2018, the company gave 40 scholarships worth 120 million kip for secondary school students in Ngeun, Hongsa, and Xienghon districts. Hongsa coal power plant (HPC) developed a Community Development Program (CD) in line with the commitment β€œTo ensure better or at least same quality of life”, targeting Project Affected Persons (PAPs) residing around the Concession Area. Under the program, existing infrastructure (e.g. roads and piped water systems) was improved; while social tools (e.g. participatory rural appraisal) were used for village development planning, and village volunteers were formed as: (1) a link between the beneficiaries and HPC or government of Laos for any possible request; and (2) a household model at the village level in terms of socio-economic and sanitation aspects. Source: Company website
Comment on mineral resources
About 490MW of the total capacity will be sold to the Electricity Generating Authority of Thailand, while 100MW is expected to be used in operations at the power plant. Some 34MW will be sold to the Laotian government. Source: Bangkok Post
Fully updated
No
Yes

Data source #EV1FvQlB

File
Type
Company sources
Keep PDF not public
No
Publication title
Community Development Program of Hongsa Power Company Limited

Data source #s9SDss1Y

File
Type
Research Paper / Policy Report
Keep PDF not public
No
Publication title
Comparative analysis of public participation in the EIA process for Thai overseas investment projects: Krabi coal terminal, Hongsa coal power plant, and Dawei special economic zone
Date
2017-06-27
Name
Ashijya Otwong & Tanapon Phenrat

Data source #XLnZueF4

File
Type
Other
Keep PDF not public
No
Publication title
Hongsa Coal Mine - Global Energy Monitor

Data source #dBP9N3cv

File
Type
Other
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No
Publication title
HONGSA POWER PLANT AND MINING PROJECT

Data source #9Btbjl5Q

File
Type
Other
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No
Publication title
Hongsa Power Plant Inspection Work

Data source #KsuMu1lY

File
Type
Media report
Keep PDF not public
No
Publication title
Hundreds of Families Forced to Move for Lao Coal Plant Expansion
Date
2021-06-10
Organisation
Radio Free Asia

Data source #wkS7vSfu

File
Type
Company sources
Keep PDF not public
No
Publication title
Livelihood Restoration Program of Hongsa Power Company Limited

Data source #giNk6RJz

File
Type
Research Paper / Policy Report
Keep PDF not public
No
Publication title
Challenging Hongsa Resettlement and Livelihoods The First Mine-Mouth Power Plant Project in Lao PDR

Data source #yMksIVqW

File
Type
Media report
Keep PDF not public
No
Publication title
Ratch delays plans for fourth unit at Hongsa plant
Date
2016-11-21

Data source #7BYhdhi5

File
Type
Research Paper / Policy Report
Url
Keep PDF not public
No