The National Energy Policy Council of Thailand has endorsed the draft of a power purchase contract for electricity from Nam Theun II (NT2) hydro power dam project in Laos. The draft is expected to be signed with Laotian authorities by the third quarter of this year.

The project is scheduled to supply electricity to the Thai national grid of the Electricity Generating Authority of Thailand (EGAT) starting in July 2010. Under the 25-year contract, Egat will buy electricity from NT2 at the rate of five US cents per kWh.

Of the total length of the transmission line that will supply electricity from the dam to Egat’s national grid, 107 kilom will be in Laos and 93 km in Thailand.