Enterprise prepares to hold shares in four power projects
The Lao Holding State Enterprise (LHSE) is developing its human resources to ensure effective implementation once it holds shares in four more hydropower project.
Deputy General Manager of the enterprise, Dr Saiphet Arphayvan, said yesterday that the enterprise has been assigned by the government in June last year to hold shares in four more project Nam Ngum 3, Nam Theun 1, Nam Ngiep 1 and the Hongsa Lignite Power Plant.
“Construction on the four project has yet to start, but all initial surveys have been completed,” he said.
“The government and investor are discussing project agreement relating to loyalty fees, and environmental and resettlement issues. I think that they will sign agreement to being the four project soon.” he said.
Dr Saiphet said the LHSE, on behalf of the government, will hold a 23 percent share in Nam Ngum 3, and 20 percent shares each in Nam Ngiep 1, Nam Theun 1and the Hongsa Lignite Power Plant.
As part of its preparation to hold shares in the four projects, the LHSE held a seminar on public-private partnerships in the power sector and project finance yesterday at its office for the first since it was established in 2005.
The five-day seminar was supported by the French Development Agency and the Centre for Financial, Economic and Banking Studies.
Those attending the seminar, from the ministries of Energy and Mines, Planning and Investment, and Finance, and Electricite du Lao, learnt about project finance, negotiation processes ahead of project agreements, and evaluation methods.
The seminar was opened by the General Manager of the enterprise, Dr Somboune Manolom, and the Director of the French Development Agency, Mr Etienne Woitellier.
Dr Somboune said capacity building was necessary for the country's future development as “we don't have the financial resources to hire foreign experts”.
Dr Saiphet said various development project required cooperation between state and private sector to ensure the effectiveness of the projects.
The LHSE was congratulated earlier this year by the government for its success in mobilizing funds for the Nam Theun 2, the largest hydropower project in Lao.
It now holds a 25 percent share in the Nam Theun 2 Power Company Limited, having mobilised funds from five sources for Nam Theun 2 project - the International Development Association, the Asian Development Bank, the European Investment bank, Multilateral Investment Guarantee Agency and the Nordic Investment Bank.
Nam Theun 2 is currently under construction, with an installed capacity of more than 1,000 MW for export to Thailand and for domestic supply.
The project will be completed by the end of 2009.