(KPL) Phonesack Group held a groundbreaking ceremony on April 2 for a 4-billion-dollar coal-fired thermal power plant project in Kalum District, Xekong Province, southern Laos.

The event was attended by Deputy Prime Minister Saleumxay Kommasith, the Minister of Energy and Mines, the Provincial Governor, and key guests from public and private sectors.

The project is being developed by the Phonesack Group.

“This thermal power plant will have a production capacity of 1,800 megawatts (MW) and a construction value of approximately $4 billion,” said Mr. Phonesack Vilaysack, Chairman of Phonesack Group. “This marks one of Laos’ key energy industry development projects.” 

The construction is set to begin in April 2025, and upon completion, the plant will be considered as an energy infrastructure integration with Cambodia and the power generated will be exported to Cambodia under a Power Purchase Agreement (PPA) with Cambodia’s state-owned Electricité du Cambodge (EDC).

The construction will be divided into three phases, with the first unit expected to begin power generation in January 2028 as full operational capacity is projected by January 2030.

The project will be managed by subsidiaries under Phonesack Group, including Xekong Thermal Power Co., Ltd (XTPPL) and Xekong Power Plant Co., Ltd (XPPL).

In addition to the power plant, the project includes the construction of a 500 kV transmission line, spanning 253 kilometers, connecting the plant to the Laos-Cambodia border. 

This infrastructure will enhance regional energy connectivity. The plant will utilize advanced combustion technology which is compliant with international standards to ensure reliability, safety, and environmental responsibility.

Mr.  Van Hoang Dau , President of the Board of Directors of PSG Corporation Public Company Ltd., highlighted that the project is a collaboration between China Western Power Corporation, a provider of electrical machinery and equipment, and PSG Corporation Public Company Ltd., a Lao firm responsible for the main construction and auxiliary systems.

He emphasized that combining international technology with Lao expertise reflects a joint commitment to sustainable development. 

Additionally, Petro Vietnam Power Corporation will provide training for local staff in power plant operation and maintenance, ensuring long-term benefits for local communities.

The project also received financial support from MB Bank of Vietnam, which affirmed its commitment to ensuring the project meets international efficiency standards, respects the environment, improves local quality of life, and contributes to sustainable national development.

KPL