This public-private Nam Ngum 3 power plant, on the Nam Ngum River in northern Lao PDR, will generate about 2,072GWh of clean energy per year for export to neighboring Thailand.
The power project, estimated to cost around $1bn, will comprise a 220-meter-high dam that will create a 27.5 sq km reservoir.
The facility will be built and operated for 27 years by the Nam Ngum 3 Power Company and is expected to commence operation in 2017.
ADB Southeast Asia Department director Anthony Jude said by using hydropower instead of fossil fuels, Thailand will avoid an average one million tons of carbon dioxide emissions every year.
The Nam Ngum 3 plant will be located upstream of two existing hydropower facilities and downstream from another plant that is currently under construction.
