Lao Voices

Nam Theun 2 dam ready for flooding, panel says

An independent panel of international environmental and social experts has expressed support for a plan to seal a tunnel to direct water into the Nam Theun 2 dam this week and close the dam gate in June.

This will store water for electricity generation, which is scheduled to take place at the beginning of 2009. The reservoir on the Nakai Plateau in Khammuan province would be flooded within five months if the dam gate is closed.

The panel made an official announcement in support of the plan on Friday at the Ministry of Energy and Mines after having paid several visits to the project site, where they found everything was well managed and the dam ready to be flooded.

“The project has met the requirements of the concession agreement,” panel member Thayer Scudder told Vientiane Times on Friday prior to presenting his findings to representatives of the Nam Theun 2 project shareholders in Vientiane.

Another panel member, Mr David MacDowell, agreed with Mr Scudder.

The two panel members said they appreciated the hard work of the shareholders and th e Lao government in implementing their commitment to ensure improved living conditions for local people as well as a sustainable environment around the project site.

Deputy Director General of the Energy Promotion and Development Department of the Ministry of Energy and Mines, Mr Sychath Boutsakitirath, said the official announcement by international environmental and social experts to support the release of water into the dam was comparable to a green light for the project to operate as planned.

The panel was established as an independent consulting body as part of the loan agreement between the Lao government and the World Bank.

Over the past 33 months, the panel has presented 14 recommendations for the government to follow.

According to a press release from the Energy Promotion and Development Department, the Lao government has fulfilled its obligation to the project, including the installation of infrastructure, clearance of the dam area and formulating a downstream development plan.

The construction of the 1,070 MW hydropower plant, which began in 2005, is now 85 percent complete.

The Lao government holds 25 percent of the investment share in the US$1.4 billion Nam Theun 2 project.

Other shareholders are Electricite de France (35 percent), Electricity Generating Public Co. Ltd. (25 percent), and Ital-Thai Public Development Company (15 percent).

According to the joint venture agreement, about 93 percent of the electricity generated by the plant will be exported to Thailand . The remaining 7 percent will be available for domestic consumption.

The project expects to generate US$280 million a year, while the Lao government will receive US$80 million a year in taxes, royalties and dividends.

By EKAPHONE PHOUTHONESY
April 6, 2008
Vientiane Times - Vientianetimes.org.la