Finnish engineering consulting firm Pöyry has been awarded a contract by Phonesack Group for the 650MW Nam Theun 1 hydro electric project in Lao People’s Democratic Republic.

Phonesack, which is the lead developer the hydro power project, has awarded a owner’s engineering services assignment contract to Pöyry.

The hydro electric power project is located at Nam Kading River, about 33km upstream of its joining with the Mekong River and 270km from Vientiane in Central Laos.

The project plays a significant role in the Lao and Thai Power development plan and is considered to increase electricity supply for both the countries.

Commercial operations of the project are expected to begin by the end of 2022.

Previously, Pöyry was contracted for feasibility study, basic/ detailed design and supervision of early works of the project. The company has been associated with the hydro project since 1995 and has been providing technical consultancy and engineering services.

As part of the latest contract, Pöyry will be responsible for environmental and social mitigation measures of the project until completion.

Pöyry Energy Business Group president Richard Pinnock said: "Delivering clean, renewable energy projects like this can aid economic growth and social progress and help alleviate poverty in developing countries.

“This project further strengthens Pöyry's position as one of the world's leading hydropower engineering consultancies.” 

Details about the contract’s financial value has not been disclosed.