CDB to finance seven hydropower projects in Laos

The China Development Bank will provide funds or loans for the seven hydropower plants to be built on the Nam Ou River in Phongsaly and Luang Prabang provinces.

The project is estimated to cost over 16 trillion kip or US$2 billion, an Electricite Du Laos senior official said.
EDL, on behalf of the Lao government, will hold a share of 15 percent and Sino will hold 85 percent.

However the investors have not decided when construction will start since further details on the loans has yet to be negotiated.

The two developers are also in negotiations for the power purchase agreement. The generated electricity will be sold to the EDL power grid to supply the local market and for export to Thailand, Vietnam and China.

The project will take place in two phases. Phase one will consist of three dams, mainly in Luang Prabang.

The second phase will build four dams in Phongsaly province.

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