The Electricity Generating Authority of Thailand (EGAT) plans to buy about 995MW of electricity from Lao developer Nam Theun II Power Company, beginning from 2008, according to reports on the Vietnam News Agency. The electricity would be used for domestic consumption in the country.

As estimated, this purchase will provide US$4.8M in revenue to Laos.

The move would be the green light signal for preparatory works for Laos’s planned Nam Theun II hydroelectric power project worth US$1.3B.

If Thailand gives the go-ahead and an agreement is reached with the World Bank over loan guarantees, Nam Theun II would reach full commercial operation in 2008, company advisor Loy Chansavat was quoted as saying.

Laos’s Nam Theun II dam across the Thai-Lao border from Nakhon Phanom province, 750km northeast from Bangkok, is a joint venture between Lao, Thai and French companies.

The biggest partner of the project is Electricity de France, with a 35% stake. Two Thai companies account for 25% and 15%, and Electricity of Laos, 25%.