Lao People's Democratic Republic : NAM NGIEP 1 HYDROPOWER PROJECT

Project Name

NAM NGIEP 1 HYDROPOWER PROJECT

Project Number

41924-014

Borrower / Company

• Nam Ngiep 1 Power Company Limited

Country / Economy

• Lao People's Democratic Republic

Location

Type or Modality of Assistance

Approval Number	Facility	Fund Source	Amount	Status
3153	Loan	Ordinary capital resources	USD 49.78 million	Committed
3154	Loan	Ordinary capital resources	THB 3,025.00 million	Committed
66	B-Loan	Other	USD 71.33 million	Committed

Strategic Agendas

• Environmentally sustainable growth
• Inclusive economic growth
• Regional integration

Drivers of Change

• Partnerships
• Private sector development

Sector / Subsector

• Energy / Large hydropower generation

Gender

Some gender elements

Project Sponsor(s)

• EGAT International
• Kansai Electric Power Company Inc.
• Lao Holding State Enterprise

Description

The Project involves the construction and operation of a 290 MW hydropower generation facility on a build-operate-transfer (BOT) arrangement at the Nam Ngiep River in the provinces of Bolikhamxay and Xaysomboun, Lao PDR.

Objectives and Scope

As one of major export hydropower projects in Lao PDR, the Project will contribute to the country's economic growth and is an important component of the Government of Lao PDR's poverty-reduction strategy. For Thailand, the Project supports sustainable development through the provision of clean energy and energy diversification.

Status of Development Objectives

To be achieved.

Status of Operation/Construction

Commercial operations started on 5 Sept 2019.

Material Changes

None.

Linkage to Country/Regional Strategy

The Project is consistent with the country strategy and program for Lao PDR as it will develop export hydropower resources, increase the supply of affordable power, generate employment opportunities for Lao nationals, improve workforce skills, and provide local infrastructure in the project area, all of which will have multiplier effects to the country's economy. Moreover, the Project mobilizes large-scale foreign direct investment into Lao PDR.

Safeguard Categories

Environment

A

Involuntary Resettlement

A

Indigenous Peoples

A

Summary of Environmental and Social Aspects

Environmental Aspects

Key environmental impacts are associated with the inundation of 68km of terrestrial and riverine habitats, resulting in loss and alteration of habitats. A comprehensive program of mitigation, management, and biodiversity offsets are planned. The environment management plan also provides measures for advanced warning for downstream hydrological changes and management of riverbank erosion during operations.

Involuntary Resettlement

The project will involve relocation of more than 430 households and loss of land by more than 560 households. NNP1PC has prepared resettlement and livelihood restoration plans to responsibly resettle and compensate these people, many of whom are ethnic minority Hmong. NNP1PC has also prepared a social development plan comprising a public health action plan, a community development plan, and a labor management plan to mitigate impacts and promote social development in the project area.

Indigenous Peoples

See above.

Stakeholder Communication, Participation, and Consultation

The Project has carried out and is continuing public consultations with stakeholders at household, village, provincial, and national levels.

Contact

Responsible ADB Officer

Nath, Kiron

Responsible ADB Division

Portfolio Management Division, PSOD

Responsible ADB Department

Private Sector Operations Department

Timetable for assistance design, processing, and implementation

Concept Clearance

07 Apr 2014

Credit Committee Meeting

09 Jul 2014

Approval

14 Aug 2014

PDS Creation Date

24 Jan 2012

Last PDS Update

29 Jan 2024