Nam Kham 2 will be located 30 kilometers southeast of Luang Prabang city on the Nam Kham river. The plant is expected to generate 556 million kWh of electricity per year. Nam Kham 3 will be located 70 kilometers north of Luang Prabang city and is expected to generate 222 million kWh per year.

Under the agreeement, a 230 kilovolt power transmission line will be built from Xiengkhouang to Luang Prabang city. The transmission project includes expansion of transformer station at Xiekhouang and construction of a new transformer station at Luang Prabang.

EDL Chairman Khammone Phonekeo said “the energy sector, especially hydro power, plays a very key role in Laos’ economic development.” He expected the construction work on the new projects to begin soon.

Sinohydro Deputy General Manager Huang Baodong said “Sinohydro has over 10 years of business experience in Laos and the contracts with EDL will further consolidate and improve Sinohydro’s market share in the country’s hydro power sector.”

Institute of Public and Environmental Affairs Director Ma Jun said “Chinese hydro power enterprises should strictly abide by local environmental rules and reduce impacts on local environment as much as possible when they are exploring hydro power projects overseas, especially when they’re doing projects in some developing countries in which the environmental assessment and supervision system still needs improvement.”