The Project involves the construction of a 210 MW power plant and the related transmission line to Thailand. The project is a run-of-the-river type with a generating capacity of 1,645 GWh per year. It was intended to supply both the domestic market in Lao PDR and the Thai market with clean and renewable energy. The project is located on Theun Hinboun about 100 km upstream its confluence with the Mekong to Central Lao PDR.

The Project is consistent with the Government of Lao PDR's energy policy of developing hydropower resources for export. The sale of electrical energy by the Government is one of the major opportunities for Lao PDR to earn foreign exchange. Prior to the Project, foreign exchange revenues of Lao PDR from power exports amounted to $ 20 million or 20% of total foreign exchange earnings. The Project is expected to boost such export revenues through the payment of dividends, royalties, and taxes to the Government.

Project Cost and Financing ($ million)

Total project cost is $ 280 million. The Project's financing plan includes $ 80 million in export credits and $80 million in commercial credits from a consortium of banks in Thailand. ADB coordinated the arrangements and financing for the joint venture company (JVC) which was formed to implement the project, e.g., build, operate, arrange financing, and negotiate long term electricity export contract. The three participants to the JVC, the Government of Lao PDR, the Nordic Group representing utilities in Norway and Sweden, and MDX, a Thailand-based company, signed a Memorandum of Understanding (MOU) in June 1993.

Status

Project completed in 1998. Project now operated by the THPC. For further inquiry, you may contact :
Mr. B.M. Karunaratne
Senior Project Engineer, IWEN, ADB
(bmkarunaratne@adb.org)