Power Sector Development in Lao PDR

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1 Power Sector Development in Lao PDR Presented by Mr. Xaypaseuth PHOMSOUPHA Ministry of Energy and Mines at Lao Economy and Investment Seminar Tokyo, 24, October

2 Background of Lao PDR Mountainous area with major tributaries of the Mekong River scattered from North to South flowing through the country territory Relatively high annual precipitation and monsoons from two directions as one from the Gulf of Thailand and the other from the Gulf of Tonkin Situated amongst neighboring countries where demand for electric power is steadily increasing Experience in electric power exchange with neighboring countries with no difficulty for more than 30 years Cooperation of electric interconnection within the region already in place 2

3 History of Power Sector Development Memorandum of Understanding on the power exchange program was signed with the Royal Thai Government in 1993 and 1996 under which 3,000 MW is to be supplied to Thailand and subsequently increased 5,000 MW is agreed in principle. In 1998 MOU for 2000MW was signed with the Government of Vietnam. In 1999 Agreement on Cooperation in Power Sector was signed with Cambodia Power Sector Strategy developed Power sector opened to private foreign direct investment Legal framework has been improved from time to time to meet international financing requirements 3

4 Power Sector Policy Maintain and expand affordable, reliable and sustainable electricity supply to promote economic and social development Tap the country s potentials aiming at promoting power generation for export to provide revenues to meet Government development objectives with particular emphasis on poverty eradication Develop and enhance the legal and regulatory framework to facilitate power sector development by either public or private parties Gain capacity building through exotic technical knowhow and expertise Ensure accountability and transparency of environmental and social impacts and thereby achieve sustainable development 4

5 Nam Ko(1.5MW) Power Plants in Operation as of 2006 Nam Dong(1MW) Nam Ngum 1(150MW) Theun-Hinboun (210MW) Nam Mang 3(35MW) Nam Leuk (60MW) Selabam (5MW) Se Xet 1(45MW) Note: Red is IPP Black is SO Houay Ho (150MW) 5

6 Projects Under Construction Nam Ngum 2 (615MW) Nam Theun 2 (1088MW) Xe Kaman 3 (250MW) Note: Red is IPP Black is SO Se Xet 2 (72MW) 6

7 Projects to Supply Thai Grid Hongsa Thermal (1600MW) Nam Ngum 3 (440MW) Nam Ngum 2(615MW) Nam Ngiep 1(263MW) Nam Theun 1 (520MW) THPC Expansion(440MW) Nam Theun 2 (1088MW) Sepian-Xenamnoi (390MW) Note: Red is IPP Black is SO 7

8 Projects to Supply Vietnamese Grid Nam Mo (105MW) Xe Kaman 3(250MW) Note: Red is IPP Black is SO Xe Kaman 1 (468MW) 8

9 IPP Under Preparation Hydropower Plants Inst. Capacity Market Nam Ou MW China Nam Tha MW China Nam Lik MW EdL Nam Ngum MW EdL Nam Nhone 2.5 MW EdL Nam Sim 8 MW EdL Sekong MW Vietnam Sekong MW Vietnam Nam Kong 273 MW Vietnam Don Sahong 220 MW Cambodia Nam Ngiep MW Vietnam/Thailand 9

10 Nam Nhone(1MW) Nam Ou 8(680MW) Nam Ngum 5 (120MW) Selected Projects Under Preparation Nam Lik (100MW) Sekong 5(253MW) Sekong 4(440MW) Sekaman 1(468MW) Note: Red is IPP Black is SO Nam Kong 1(240MW) 10

11 Long Term Development of Sub- Regional Interconnection 500kv Transmission Line Facilities (Jinghong) China-(Luang Namtha) Laos-Thailand (Hating) Vietnam-Nam Theun 2 (Laos)-Thailand (Pleiku) Vietnam-Ban Sok /Sananakhet (Laos)-Thailand Sub-Regional Interconnection Plan 19 11

12 Long Term Development of Regional 500-kv Interconnection 12

13 Existing/Possible Involvement of Japanese Companies in Lao Energy Sector Development Existing Nam Ngum 1 Project (155MW): Nippon Koei as consultant, Hazama as contractor and Hitachi as supplier Nam Theun 2 Project (1088MW): Mitsubishi as shareholder, contractor and supplier, and Nishimatsu as contractor On-going Nam Ngum 3 Project (440MW): Marubeni as concessionaire Nam Ngiep 2 Project (263MW): Nippon Koei and Kansai Electrics as concessionaires Se Katam Project (60MW): as concessionaire Future as Strategic partners/investors Financiers Contractors Suppliers Consultants 13

14 More information available on or Contact 14

15 THANK YOU VERY MUCH FOR YOUR ATTENTION 15

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