Laos’ Nam Phay hydropower project officially launched

The launch ceremony was held this week in the presence of the Minister of Energy and Mines, Dr Khammany Inthirath, the Xaysomboun provincial Governor, Major General Thongloy Silivong, Xaysomboun Peoples Council President Bounsouk Chomvisan, the Managing Director of Electricite du Lao (EDL), Bounoum Sivanpheng, the Chairman of Board of Norinco International Cooperation Ltd, Wang Yitong, the Secretary of the Party Committee of Norinco International Cooperation Ltd, and Hao Feng, the Chairman of Board of Nam Phay Power Company Ltd.
Nam Phay hydropower project is located in Longchaeng district of Xaysomboun province, about 249 km from Vientiane.
The total installed capacity is 86 mw, consisting of two 43 mw Pelton turbine generators which can produce about 417 million kwh per year. The project cost more than US$218 million and the concession period is 25 years.
The Nam Phay Power Company Ltd (NPPC), as the legal entity behind the Nam Phay hydropower project, is responsible for the investment, construction and operation of Nam Phay project.
NPPC was registered in Laos on November 25, 2013. The Hong Kong Frame Star Development Ltd, which is a wholly-owned subsidiary of Norinco International Cooperation Ltd, owns 85 per cent of the shares in the project and Electricite Du Lao (EDL) owns 15 per cent of the shares.
Norinco International Cooperation entered Laos in the early 21st century and participated in projects in the form of engineering, procurement and construction. These projects include the Xeset 2 and Xeset 3 hydropower plants, irrigation system using Nam Theun 2 hydropower plant tail water, the 115 kv transmission line from Nam Phay hydropower plant to Thongkhoun 2 substation, and the 230 kv transmission line from Thavieng substation to Laksao, said Wang Yitong. Laos and China have long-standing close relations, which the two countries have continued to enhance for comprehensive cooperation and enhanced ties.
“This project is an achievement of the two countries as well as Norinco International and EDL. We will maintain good relations, expand cooperation and increase cooperation standards in contributing to the economic development of Laos,” he said. 
The Nam Phay hydropower plant is an important project in Laos’ development strategy for the electricity industry in line with the strategy plan, the director for industrialisation and modernisation, Dr Khammany, said.
The success of the project would significantly contribute to the continued growth and development of the electricity industry in line with direction on industrialisation and modernisation, he added. This project will supply electricity for Xaysomboun and Xieng Khuang provinces, in particular Longchaeng district.
It will also contribute to generating revenues, creating jobs and enhancing the livelihood of people living near the project, Dr Khammany said.
Major General Thongloy highlighted the completion of Nam Phay hydropower project as a significant contribution to socio-economic development in the northern provinces of Laos, especially Xaysomboun, that have the potential to produce and supply adequate electricity to meet the demands of ethnic Lao people.
This project has contributed to enhancing the basic infrastructure development of the province and eradicating poverty among ethnic Lao people in line with the Sam Sang directive that calls for building the province as atrategic unit, the district as a comprehensively strengthened unit and the village as a development unit, he said.