THE GOVERNMENT OF LAOS has signed a memorandum of understanding with an Australian corporation for the construction of the 150MW Nam Fa hydro power project in northern Laos. The Australian corporation has been granted a concession to proceed with the US$150M project as a joint venture with the State of Laos.

Located near the border of Bokeo and Luang Namtha provinces, the Nam Fa hydro station is about 80km from the Lao-Thai and Lao-Chinese borders. The hydro project consists of an 80m high dam, and a reservoir almost as large as the Nam Ngum hydro station in Vientiane province. The project is expected to have an annual generation capacity of 600-700M kWh.