A Chinese company has agreed to invest in the construction of a coal-fired power plant in Hongsa district, Xayaboury province, according to a government official.
Photo: An artist's depiction of the lignite power plant, to be located in Hongsa district, Xayaboury province.
Lao State Holdings Enterprise Director Somboun Manolom said yesterday that CMEC, one of the largest companies in China , had assured original shareholders in the US$2.7 billion power plant project that it would invest in the venture.
But the company is seeking more time to gather further information on the potential future benefits of the 1800MW capacity power plant before making a final decision on the size of its investment stake, Mr Somboun said.
Mr Somboun, whose company represents the 20 percent holding the Lao government has in the project, said the original shareholders had given CMEC until May to make a decision. This amount of time was sufficient to study the details of the project, he added.
He said the Lao government would like CMEC to hold a 20 to 25 percent share of the project, but it was up to them to make the decision. “If CMEC buys less than a 25 percent share, the Lao government will purchase the remaining stake,” he said.
Mr Somboun confirmed the two Thai companies, BANPU and RATCH, who each presently hold a 40 percent shareholding, had agreed to decrease their holdings to allow CMEC to invest in the venture. He also said the two companies had sought the new investment partner.
“It was the two Thai companies who contacted CMEC, inviting them to become an investment partner,” Mr Somboun told Vientiane Times.
He said the more partners involved in the venture the better, as this would make it easier to generate funding for the project.
Mr Somboun said the Hongsa Lignite Power Plant was currently negotiating a contract with a Thai buyer. The parties have agreed on a sale price of 6 US cents per kilowatt-hour of electricity and hope to sign an agreement soon.
The purchase agreement is an important step, leading to a concession agreement from the government to start construction of the power plant.
Mr Somboun confirmed that environmental and social feasibility studies had been completed and the government had agreed with a plan that addressed the impact of the project on the local community.
He said if everything went as planned, construction of the power plant would commence by the end of this year. The plant expects to be generating electricity for sale by 2013.
hmm this will be interesting. So its time to put carbon dioxide into the Laos instead of there own country huh? their air quality is the worst the world!
He said the Lao government would like CMEC to hold a 20 to 25 percent share of the project, but it was up to them to make the decision. “If CMEC buys less than a 25 percent share, the Lao government will purchase the remaining stake,” he said.
Mr Somboun confirmed the two Thai companies, BANPU and RATCH, who each presently hold a 40 percent shareholding, had agreed to decrease their holdings to allow CMEC to invest in the venture. He also said the two companies had sought the new investment partner.
Why not blame Thai companies instead Chinese? Look at the percentage of shareholding.
