Mitr Phol Corp., Ltd of Thailand and the Laosamay Road Bridge Construction Company have signed a joint investment agreement for the development and construction of a hydropower dam on the Xe Bangfai river in Khammuan and an irrigation system for both Khammuan and Savannakhet provinces.
The joint venture was signed in Vientiane Capital on May 19 in the presence of Minister of Planning and Investment Souphanh Keomisay, Minister of Energy and Mines Khammany Inthilath and representatives of relevant sectors
The Xe Bangfai hydropower dam, which will be located in Khammuan province, is expected to generate 110 MW of electricity and provide an irrigation system that will supply water to 40,000 ha of agricultural areas in Khammuan and Savannakhet provinces.
Director of Laosamay Road Bridge Construction., Ltd Phouvong Kolasack disclosed that this project will cost almost 2 trillion kip (US$ 245,423,466), with 70 percent of the investment coming from Mitr Phol Corp., Ltd and the remaining 30 percent from the Laosamay Road Bridge Construction Company. The generated electricity will be sold to the Electricite du Lao.
The Xe Bangfai dam is expected to be built under a concession contract signed with the Government, with construction beginning in 2018.
Minister of Energy and Mines Khammany and Minister of Planning and Investment Souphanh Keomixay praised the two companies for their contribution to the socio-economic development and irrigation systems in the two provinces of Khammuan and Savannakhet.
Source: Lao News Agency