Sekaman-3 hydropower plant project which is one of 5 hydropower projects agreed by Vietnamese and Lao Governments is constructed in Dakchung commune, Sekong province. This is the project in Laos-Vietnam energy development cooperation program with the target of 3,000 MW. To date, 5 hydropower projects signed with Vietnam by Laos have recorded the total capacity at 2,500 MW and the expected power output has been 6,689 million kWh/year.
Sekaman-3 hydropower project which has the capacity of 250 MW is implemented in BOT method, in which Viet-Laos Power Joint Stock Company contributes 85%, Lao Government 15% out of USD 273 million. The implementation period of the project is 30 years. The project was started constructing in April 2006 and has already completed 30% of the work, and today Vietnam has just finished river closure successfully.
The development of hydropower plants is considered a top priority and an advantage of Laos. Currently, power generation value of Laos to neighbour countries like Thailand, Vietnam and China accounts for the largest weight in Laos’ total import-export turn-over.
Following this orientation, Lao Government is urgently carrying out the program of constructing 50 – 60 hydropower plants, aiming at the objective of becoming a giant power export country in the region and Asia. It is said that Laos wants to be “the Asian battery”.
Having advantages to develop hydropower plants from the small-sized (20-200 MW) to the large (1000-1500 MW), Laos has recently put this industry in its priority. Neighbour countries such as Vietnam, China, Thailand and some other Western countries are the investors of numerous hydropower companies in Laos.
Lately, Nam Theun-Hinboun Power Company of Laos is preparing for the extension project in Khammouan province in mid 2008, and expects to produce 280-290 MW in 2012 (210 MW is the current power output). Lao Government is also planning to build a big power transmission substation in Saythani commune in Vieng Chan. This will be the power destination from 4 power plants, including Nam Theun No.1 (500 MW), Nam Ngep (260 MW), Nam Ngum No.2 (600 MW) and Nam Ngum No.3 (450 MW) to export power to Thailand. At present, The total power output of Laos is just 600 MW. As estimated, after completing 50 – 60 hydropower projects, Laos will generate 17,000 – 18,000 MW, so Laos is attempting to finish 29 of them by 2020. Some hydropower projects with large capacity has been signed lately, including Luang Prabang hydropower company with capacity of 1,400 MW signed with Vietnam, Nam U hydropower company with capacity of 600 MW signed with China, Sayabouly hydropower company with capacity of 1,400 MW being investigated by a Chinese investor and so on.
In the situation that fossil fuel’s price is going up due to the exhausting resources, the exploitation of hydropower in Laos is considered a right orientation and a breakthrough to develop a comprehensive economy.