Lender visits Nam Ngiep 1 Hydropower Project

Representatives of the Japan Bank for International Cooperation (JBIC) visited Nam Ngiep 1 Hydropower project in Bolikhamxay province, Lao PDR, to hear about its progress. The visit took place on 14 September 2015.

During the visit, Mr. Ryoichi Abe, JBIC Deputy Director of Division 3, New Energy and Power Finance Department I, Infrastructure and Environmental Finance Group, and his delegation were briefed on the progress of the Project’s construction progress as well as environmental management and social development programs.

After the briefing, they visited the construction site where they saw the progress of the construction of the re-regulation powerhouse, the excavation work of the main dam, and the almost completed diversion tunneling.

“Overall, we have made a good progress as planned since the construction started in November 2014. The percentage completion by value progress has reached around 25%. The river diversion for the main dam and powerhouse construction is expected to begin at the end of 2015,” said Mr. Shoji Tsutsui, Deputy Managing Director – Technical Division of Nam Ngiep 1 Power Company (NNP1PC).

During the visit, the delegation visited Hatsaykham; one of five communities in the project’s area that will be inundated once the construction of the dam is completed.

In the village, the delegation were briefed about the relocation plan and saw some of the livelihood improvement activities that have been piloted by the project in order to improve the living conditions of the villagers prior to and after resettlement.

The delegation also visited different water treatment systems at contractor’s camps and the community‘s recycle bank, and were briefed about social work implemented by the project in the construction area.

In Vientiane capital, the delegation visited Lao Holding State Enterprise, one of the shareholders of the project, and paid a courtesy visit to the Ministry of Foreign Affairs.

JBIC is one of the main lenders of Nam Ngiep 1 Hydropower project. The visit is part of the Lender’s Technical Advisor criteria specified in the lender’s agreement.

Nam Ngiep 1 is a 290-megawatt hydropower project with 290 megawatt installed capacity and is under construction in Bolikhamxay and Xaysomboun Pprovinces of the Lao PDR. The Project is managed by NNP1PC.

NNP1PC is co-owned by KPIC Netherlands, a subsidiary of Japan’s Kansai Electric Power, EGAT international, a subsidiary of Electricity Generation Authority of Thailand, and Lao Holding State Enterprise.

Electricity generation is expected to start in January 2019 with the annual output of about 1,651 Gigawatt hours per year. Out of this, 93% will be sold to EGAT and the rest to Electricite´ du Laos.

During the 27-year concession period, the Lao PDR expects to receive more than US$600 million from the Project through royalty fees, taxes and dividends paid to Lao Holding State Enterprise, the government’s shareholder in the Project.

Lao PDR also expects benefit directly and indirectly from the project through electricity supply, local employment, community infrastructure such as roads and bridges, and through the use of goods and services supplied to the project by Lao contractors.

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