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US$65 million electricity project goes ahead

By Phonsavanh Vongsay
Vientiane Times April 8, 2008


Lao and Chinese energy developers have signed off on an electricity
project worth 568 billion kip (US$65 million).

The employer, Electricite du Laos (EDL), and the contractor, China
International Water and Electric Corporation (CWE), signed contracts
in Vientiane on Friday.

The project, which is located in Vientiane and Vientiane province,
will establish transmission lines and extend the substations to
support electricity created by energy development projects in the
north, such as the hydropower projects of Nam Lik 1 and 2, Nam Ngum 5,
Nam Khan 2, Hongsa Lignite-fired Power Plant Project and other power
plants.

A Chinese bank will finance 80 percent of the project cost and the
remaining 20 percent will be funded locally by EDL, according to a
statement issued at the signing ceremony.

"The project will begin with transmission lines installed by end of
this year," said EDL Deputy Managing Director Sisavath Thiravong on
the phone yesterday.

The project will upgrade the power grid and extend the substations of
Ban Don, Hinheup, Naxaythong and Phontong.

The transmission lines will include a 17km-long single circuit 115kV
transmission line from Ban Don Substation in Meuangfeuang district, to
Hinheup substation in Hinheup district, Vientiane province.

A 71.5km-long double circuit 230kV transmission line will be built
from Hinheup substation to Naxaythong substation in Naxaithong
district, Vientiane.

A 12km-long double circuit 115kV transmission line will also be
installed from Phontong substation in Chanthabouly district in
Vientiane to Naxaithong substation.

"This project will be completed in 2010," Mr Sisavath said.

This is the fifth project EDL and CWE have worked together on. Before
this, EDL and CWE had successfully executed the Nam Leuk Hydropower
Project from 1996 to 1999, Nam Mang 3 Hydropower Development project
from 2002 to 2005 and Nam Mang 3 Appurtenance Works Transmission Lines
and Substations from 2004 to 2006.

The Nam Lik 1-2 Hydropower Project was the fourth between EDL and CWE.
They are also the original shareholders of this project, which is now
under construction.

CWE will try its hardest to make the project successful and build
further on the friendship between Laos and China , the company said in
a press release.

 
 

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