Deal #8345

Phase 1: Nam Ou 2 HPP reservoir area: 2,215,900 hectares Nam Ou 5 HPP reservoir area: 1,027,000 hectares Nam Ou 6 HPP reservoir area: 548,000 hectares and is estimated to result to loss of 2,234 hectares of land due to inundation (2,000 hectares) and 234 hectares (building area). Phase 2: Nam Ou 1 HPP Nam Ou 3 HPP Nam Ou 4 HPP Nam Ou 7 HPP

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

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)

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.