Nam Ngiep 1 is listed as a priority project by the Lao government, one of the “ASEAN battery” projects that will help Laos develop its economy and achieve the UN Millennium Development Goals.

During the 27-year concession period NNP1 expects to contribute over US$600 million to the Lao state through royalty fees, taxes and dividends paid to the government’s shareholder in the project, the Lao Holding State Enterprise. At the end of the concession period, all plant facilities will be transferred to the government at no charge. In the meantime, the 18 megawatts of electricity generated at the Re-Regulating Dam for local consumption will make a significant addition to the power available in Bolikhamxay Province, helping EDL to fulfil its electrification targets and contributing to business development in the area.

Significant stimulus is expected for the economy in Bolikhamxay Province in the area around the dam construction site. Improved roads and electricity supply will increase trade opportunity and access to public services, while better water supply will enhance public health. In the short-term the influx of construction workers and new employment opportunities for local people will inject capital into the area. People resettled or relocated by the project and those living in nearby host villages will also be able to participate in livelihoods programs that can help them increase their incomes in the long term.

NNP1 social and environmental documents describe in detail the project’s anticipated impacts and how the company is working with local people, government agencies and other partners to ensure the project has a positive impact on local people and on the environment as a whole. With social and environmental department costs budgeted at US$52.5 million, NNP1 is committed to spending more than 6% of the Project budget on its own direct social and environmental measures.