On July 1, Lao Prime Minister Thongloun Sisoulith signed the Prime Ministerial decree to approve the land, assets, and water resource rights for Phase-II of the Nam Ou River Cascade Hydropower Plant project, and approved the relevant decree exemptions specified in the franchise agreement.
The decree is a seal of governmental approval for the Phase-II project of the Nam Ou River following the Lao National Assembly resolution, providing a comprehensive guarantee for the legality of the continued development of the project and laying a good foundation for its smooth implementation.
The Nam Ou River Cascade Hydropower Plant project is a key project in the implementation of China’s Belt and Road Initiative and its Lancang-Mekong Cooperation national strategy. It is also the first Chinese company-run project to win the developments rights to an entire river basin within Laos territory.
On August 31, 2015, POWERCHINA and the government of Laos, witnessed by Chinese President Xi Jinping and the then Lao President Choummaly Sayasone, signed the Franchise Agreement and Power Purchase Agreement for the project of Nam Ou River Cascade Hydropower Plant (Phase-II) at the Great Hall of the People in Beijing.
The project comprises seven separate cascade power stations for development with a total installed capacity of 1,272 MW, and an average annual generating capacity of about 5.064 billion kWh, at a total investment of about $2.7 billion.
The construction of the principal project of Nam Ou River project (second, fifth, sixth cascade hydropower stations) commenced in October 2012, and the first generating unit was put into operation on November 29, 2015.
All generating units came on stream this May. The Phase-I project, following completion, has played a positive role in seasonal drought and flood regulation within the basin, improving flood control capacity and ensuring farmland irrigation downstream, reducing soil erosion, and protecting the ecological balance.
Meanwhile, it has improved traffic on the river reaches and surrounding area, improved the feasibility of upgrading the power grid in northern Laos and connected transport, creating employment, and boosting people’s livelihoods, resulting in great comprehensive social and economic benefits.
Considering the significant economic and social benefits generated by Phase-I of the project, the Lao Government is actively promoting the implementation of Phase II. Currently, the preliminary road and bridge projects for Phase-II of the Nam Ou River project (first, third, fourth, seventh hydropower station) have been completed and will be fully operational for power generation by 2020.
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