Deal #8345 Version 83147 Version 87719
Size in operation (production)
  • [current] 2234.0 ha
  • [current] 2234 ha
Comment on intention of investment
The cascade units are being developed in two phases with a cumulative capacity of 1,272 MW. Nam Ou 2 installed capacity: 120 MW Nam Ou 5 installed capacity: 240 MW Nam Ou 6 installed capacity: 180 MW Nam Ou 1 installed capacity: 180MW Nam Ou 3 installed capacity: 210MW Nam Ou 4 installed capacity: 132MW Nam Ou 7 installed capacity: 210MW
The Nam Ou River Cascade Hydropower Project is part of Laos’s bid to become the ‘battery of Southeast Asia’—a bet on rapid hydropower development as a way to generate much-needed income while also increasing electrification within the country. The cascade units are being developed in two phases with a cumulative capacity of 1,272 MW. Nam Ou 2 installed capacity: 120 MW Nam Ou 5 installed capacity: 240 MW Nam Ou 6 installed capacity: 180 MW Nam Ou 1 installed capacity: 180MW Nam Ou 3 installed capacity: 210MW Nam Ou 4 installed capacity: 132MW Nam Ou 7 installed capacity: 210MW
Comment on nature of the deal
25-year build, operate and transfer (BOT) agreement
25-year build, operate and transfer (BOT) agreement The Nam Ou River Cascade Hydropower Project was initiated by Sinohydro but completed by PowerChina Resources Limited (PCR) after the companies merged. PCR, a subsidiary of Power Construction Corporation of China (PowerChina), developed the project through two subsidiaries: 1) Nam Ou River Basin Hydropower Company Limited (85% owned by PCR and 15% by Électricité du Laos). There are also other non-PowerChina Companies have been involved in the development of these dams, including: Toshiba Hydro Power Hangzhou, Multiconsult Group, Earth Systems Lao (ESL) and KKS Construction Building Company Limited (KKS)
Comment on implementation status
Phase one of the project consisting of three units with a total installed capacity of 540MW was commissioned in January 2017. The construction work on phase two, which comprises of four units with a total installed capacity of 732MW, began in April 2016. The first unit of phase two was commissioned in December 2019, while the remaining units are expected to be commissioned by 2020.
The cascade includes two phases. Phase One consists of Nam Ou 2, 5, and 6 hydropower plants. Construction for Phase One formally began in December 2012 and it was fully operational by October 2016. Phase Two consists of Nam Ou 1, 3, 4, and 7 hydropower plants and became fully operational in September 2021. Phase one of the project consisting of three units with a total installed capacity of 540MW was commissioned in January 2017. The construction work on phase two, which comprises of four units with a total installed capacity of 732MW, began in April 2016. The first unit of phase two was commissioned in December 2019, while the remaining units are expected to be commissioned by 2020.
Comment on investment chain
The Nam Ou Cascade Hydropower Project is a series of seven hydroelectric dams along the Nam Ou river which are located in the provinces of Phongsaly and Luang Prabang in northern Laos. The project is managed by the Power Construction Corporation of China (PowerChina) and the Lao government. The construction of the hydropower project is being completed in two phases. Phase I of the dams, including Nam Ou 2, Nam Ou 5, and Nam Ou 6 while Phase II include Nam Ou 1, 3, 4, and 7. The whole project is expected to be completed in 2020 but Phase 1 operations already began in 2017. Phase I is funded by China Development Bank. Phase II is funded by China Development Bank, China Exim Bank and China Construction Bank. The project is owned by Laos State Electricity Corporation, Electricite du Laos (EDL). It is being developed by a joint venture of EDL (20%) and Sinohydro (80%), a subsidiary of Power China, under a 25-year build, operate and transfer (BOT) agreement signed in April 2011
The Nam Ou Cascade Hydropower Project is a series of seven hydroelectric dams along the Nam Ou river which are located in the provinces of Phongsaly and Luang Prabang in northern Laos. The project is managed by the Power Construction Corporation of China (PowerChina) and the Lao government. The construction of the hydropower project is being completed in two phases. Phase I of the dams, including Nam Ou 2, Nam Ou 5, and Nam Ou 6 while Phase II include Nam Ou 1, 3, 4, and 7. The whole project is expected to be completed in 2020 but Phase 1 operations already began in 2017. Phase I is funded by China Development Bank. Phase II is funded by China Development Bank, China Exim Bank and China Construction Bank. The project is owned by Laos State Electricity Corporation, Electricite du Laos (EDL). It is being developed by a joint venture of EDL (20%) and Sinohydro (80%), a subsidiary of Power China, under a 25-year build, operate and transfer (BOT) agreement signed in April 2011
Name of community
Hath Hin village,
Ban Lantou village,
Yod Ou village,
Sop Jiam village,
Ban Tha Hae village,
Lat Tha Hae village,
Hat Sa village
Hath Hin village,
Ban Lantou village,
Yod Ou village,
Sop Jiam village,
Ban Tha Hae village,
Lat Tha Hae village,
Hat Sa village,
Hatchanh village
Comment on displacement of people
According to the plan for the Nam Ou River project, 28 immigrant villages have been built for resettlement of more than 2,300 households, involving more than 12,600 people. Nam Ou 6 alone requires the resettlement of 2,500 people in eight villages while Nam Ou 2 Cascade has the largest resettlement impact and displaced 2,297 households from 25 villages.
According to the plan for the Nam Ou River project, 28 immigrant villages have been built for resettlement of more than 2,300 households, involving more than 12,600 people. Nam Ou 6 alone requires the resettlement of 2,500 people in eight villages while Nam Ou 2 Cascade has the largest resettlement impact and displaced 2,297 households from 25 villages In interviews conducted at the cascade by International Rivers with PowerChina Resources, the company said the project had caused the relocation of approximately 9,748 people from 127 villages. This has also undermined the existing livelihoods of tens of thousands more villagers within the basin according to cumulative impact assessment reports.
Comment on negative impacts for local communities
Environmental Degradation: The Cumulative Impact Assessment for the Nam Ou Cascade is not publicly available and suggests that the Nam Ou Cascade will significantly alter flows reaching the Mekong confluence, trap 70 percent of sediment which is usually transported into the Mekong River and reduce fish biodiversity by 66%. Other: flooding, community divide “When they closed the dam gates on 21 November, many families brought fishing nets here with high hopes, but only a few caught anything. Today, we can only find small fish,” said Muansy quietly. “When the fish disappeared, the local ferry was abandoned and we began to experience the opposite of the prosperity we had been promised.”
Environmental Degradation: The Cumulative Impact Assessment for the Nam Ou Cascade is not publicly available and suggests that the Nam Ou Cascade will significantly alter flows reaching the Mekong confluence, trap 70 percent of sediment which is usually transported into the Mekong River and reduce fish biodiversity by 66%. While CIA is never available publicly, there is a short presentation about the CIA of Nam Ou hydropower cascade available on IFC’s website (the presentation made in 2016). The IFC’s Basin Profile predicts the disappearance of critically endangered and endangered species due to construction of the dams. Other: flooding, community divide “When they closed the dam gates on 21 November, many families brought fishing nets here with high hopes, but only a few caught anything. Today, we can only find small fish,” said Muansy quietly. “When the fish disappeared, the local ferry was abandoned and we began to experience the opposite of the prosperity we had been promised.”

Data source #NCODMdUc

File
Type
Other
Keep PDF not public
No
Publication title
Cumulative Impact Assessment of the Nam Ou Hydropower Cascade

Data source #fO6yhySc

File
Type
Research Paper / Policy Report
Keep PDF not public
No
Publication title
Hydropower Development and its Impact on Local Communities in Laos: A Case Study of the Nam Ou 2 Project
Name
Amith Phetsada and Kosuke Mizuno

Data source #ARqbfA7M

File
Type
Other
Keep PDF not public
No
Comment on data source
Document title and contents are in Laotian

Data source #ylxEHbkc

Type
Company sources
Url
Keep PDF not public
No
Publication title
Nam Ou River Cascade Hydropower Project
Date
2022-03-24
Organisation
International Rivers

Data source #7s36bOA9

Type
Media report
Url
Keep PDF not public
No
Publication title
No longer business as usual: ecotourism and hydropower in northern Laos
Name
Sumiya B. TAIJ
Organisation
TECSEA

Contract #AwOiVwe9

Comment on contract
Build-Operate-Transfer (BOT) contract
The project is under 25 year BOT agreement