LAO: GMS NAM THEUN 2 HYDROELECTRIC PROJECT

The Project includes the development, construction and operation of a 1,070 megawatt (MW) trans-basin diversion power on the Nam Theun River, a tributary of the Mekong, in the central region of the Lao People's Democratic Republic (Lao PDR). A 450 square kilometer reservoir will be formed on the Nakai Plateau by constructing a dam 39 meters high northwest of the plateau. Water from the reservoir will drop about 350 meters to a powerhouse. The Project will divert about 260 cubic meters of water per second through a power station to the Xe Bang Fai River Basin, also a tributary of the Mekong. The water discharged from the power house will be released to the Xe Bang Fai through a 27 kilometer channel and a regulating pond. The Project will export 5,354 gigawatt-hours (GWh) of electricity to Thailand and will provide revenue to the Lao PDR through taxes, royalties, and dividend. About 200300 GWh will be supplied to electricity consumers in the Lao PDR. The Project is structured as a build-own-operate-transfer, with a concession period of 31 years, of which the operating period is 25 years. At the end of the concession period, the project facilities will be transferred to the Government free of charge.