VIENTIANEtiltarcade, June 21 (Xinhua) -- The Lao government signed a concession agreement with an investor to develop a 124 MW hydropower project, boosting the country's efforts to promote clean energy consumption and export to countries in the region.
Lao Deputy Minister of Planning and Investment Sthabandith Insisiengmay and Managing Director of Nam Neun 1 Hydropower Sole Co Ltd, Sounthone Sabandith, inked the deal to push forward the Nam Neun 1 Hydropower project in northern Laos' Xieng Khuang and Huaphan provinces.
The construction of the project is expected to be completed in the next four or five years, with commercial operations set for 2028. Once it is operational, the project will increase the country's hydroelectric power generation capacity and boost energy exports, Lao national TV reported on Friday.
Power from the project, which is expected to generate 576 GWh annually, will be sold to neighboring Vietnam.
Speaking at the signing ceremony on Wednesday, Sounthone highlighted that the project will have a significant impact on the local community, creating jobs and stimulating local economic growth.
It will also help to improve infrastructure such as roads, electricity transmission lines, and clean water supply.
He added that the project has attached great importance to reforestation to offset the loss of trees due to the plant and its water catchment area, and that the developer has allocated funds to finance reforestation.■
