Hongsa Mine Mount Power Project is expected to generate electricity from its first power generation unit in June.

Singkham

(KPL) The Hongsa Mine Mount Power Project in Xayaboury Province is expected to begin generating electricity for the first phase mid-this year.

            There are three generating units in total and each one has a 626 MW generating capacity. The first one will be ready to start generating electricity this June, a senior official from Hongsa Power Company reported to the Minister of Energy and Mines, Dr Soulivong Daravong at a meeting held in Xayaboury Province last week.

            Some 1,473 MW of the total output (1,878 MW) will be sold to the Electricity Generating Authority of Thailand (EGAT), while the remainder will be sold to Electricite du Laos for domestic consumption, according to www.hongsapower.com.

            Speaking at a meeting, Dr Soulivong said that the Hongsa Mine Mount Power Project is the biggest thermal project in the country and represents a total investment of US$3.7 billion. Production of electricity for modern industrialization is a priority for the Party and this project is being developed according to Party and State guidelines.

            He praised the company for the ongoing development which is proceeding according to the set plan.

            Dr Soulivong urged all relevant sectors to prepare for an official opening ceremony for the first electricity generating unit.

            However, Minister Soulivong also urged relevant sectors to pay more attention to the environmental and social impacts of the pollution that will be created once the unit begins producing electricity.

             The project is located in Hongsa and Muang Ngeune districts in Xayaboury Province. The project comprises a lignite-fired power plant, a lignite mine, a limestone mine, and supporting infrastructures.

On 30 November 2009, the Hongsa Power Company signed a concession agreement with the Lao government to develop and operate the power plant and mines.

Under the agreement, 1,473 MW of electricity will be sold per year to EGAT at the Thai-Lao border for a period of 25 years.

            The power plant will use approximately 14.3 million tonnes of lignite per year.

            The project is expected to improve the standard of living for local communities by providing a steady stream of revenue, promoting the bilateral relationship between Thailand and Lao PDR, and fulfilling the bilateral power purchase agreement between the two countries.

KPL