Deal Details

67c1c192-0b9b-4955-a2a1-4c74d6dbf633

All Deals
Base layers
Country
Lao People's Democratic Republic
Spatial Accuracy
1km to 10km
Intended area (ha)
7620.0 (ha)
Intention of Investment

Mining

Remark
Hongsa lignite power plant, installed capacity: 1878 MW
Nature of the deal

Lease/Concession

Negotiation Status
Contract signed
Duration of Agreement (years)
25 (years)
Year
2016
Implementation status
In operation
Year
2015
Remark
Two generators (out of three) fully operational as of November 2015
Implementation status
Startup phase
Year
2014
Remark
Construction of power plant, water reservoir and pit started in October 2009. Generator units will start with electricity generation in 2015
Announced amount of investment
3.71 billion US$
Current number of employees
3000
Year
2014
Investor
Name
Electricity Generating Authority of Thailand (EGAT)
Country of origin
Thailand
Secondary Investor
Name
Banpu Power Company
Country of origin
Thailand
Secondary Investor
Name
Lao Holding State Enterprise (LSHE)
Country of origin
Lao People's Democratic Republic
Secondary Investor
Name
Ratchaburi Electricity Generating Holding PLC
Country of origin
Thailand
Data source
Personal information
Date
2012-10-07
Remark
Overview of the resettlement village
Data source
Personal information
Date
2012-10-07
Remark
Village sign of the "Hongsa Power Resettlement Villages"
Data source
Research paper
Date
2010-08-01
Remark
The Potential Impacts of Lignite Mining on the Environment and Local Livelihoods in Hongsa District, Sayabouli Province, Lao PDR.
Data source
Media report
Date
2014-08-14
Remark
"Energy investor Lao Holding State Enterprise (LHSE) has reported that, as at the end of June, construction of the Hongsa Mine-Mouth Power Project in Hongsa district, Xayaboury province, was 87.7 percent complete. [...] “The project has so far cost more than 17.55 trillion kip (US$2.19 billion), which is 79 percent of the total projected cost of over 28.93 trillion kip (US$3.71 billion),” Dr Somboune said. The Hongsa mine-mouth power project will begin energy generation in 2015. It is the largest power plant to be built in Laos, and will have an installed capacity of 1,878 megawatts. Dr Somboune said the 87.7 percent completion included construction of the powerhouse which was 89.1 percent complete, the 500kV and 115kV transmission lines and substation were 99.97 percent complete; and the two dams on Nam Leuak and Nam Kaen for use by the project, plus pipeline systems were 99.9 percent complete. With regard to the coal mining side of the project, the overburden sub pit was 83.6 percent complete; and the overburden main pit and construction of a coal stockyard and infrastructure were 100 percent finished. Dr Somboune said the power plant, which started construction in October 2009 in Hongsa district, is expected to start commercial operations in 2015. The generator units 1 and 2 will begin electricity generation in May and October next year and unit 3 will start in February 2016. The plant will have an installed capacity of 1,878 megawatts (MW) to generate energy of about 12,582GWh annually for the Lao and Thai markets. LHSE was set up by the government in February 2005 to facilitate investment in energy generation, and it holds a 20 percent share in the Hongsa power plant. The Thai Ratchaburi Electricity Generating Holding Public Company owns a 40 percent shareholding in the project, while Banpu Power Ltd of Thailand owns the remaining 40 percent.[...]"
Data source
Media report
Date
2013-04-03
Remark
Vientiane Times: "The 2,036 people in Hongsa district, Xayaboury province, who had to leave their homes to make way for the construction of a lignite-fired power plant, are now settled in two new villages. The new communities of 452 houses, which will house the more than 420 relocated families, are 12km away from the project site. Construction of the two villages has been funded by the project developer, Hongsa Power Company Limited, at a cost of over US$20 million. [...] Mr Sommy said the company has built the new houses in the villages of Homsavang and Homxay, 8km from the urban centre of Hongsa district. The relocated families previously lived in Meuanghan, Nachan, Champa, Namaiyom, Nanongkham and Naxaikham villages and in other nearby communities. Some of those who made the move are now employed at the project site. In their new location, the villagers have access to an asphalted road, which was paid for by Hongsa Power Company Limited. The road runs between Sibounheuang and Napoung villages. The company has also built schools and a market, installed water and electricity and provided other facilities. The construction of a hospital is under way and will soon be complete, according to a report from the Hongsa Lignite Fired Power Project. Mr Sommy said each family had also received two hectares of farmland from the project. Families have planted rubber trees on one hectare after being given saplings, fertiliser and wages by the project, and are growing rice, sweetcorn and vegetables on the remaining land. The villagers have also received training in farming methods, livestock raising and massage skills. [...] Ratchaburi Electricity Generating Holding owns a 40 percent share in the project, while Banpu also has a 40 percent stake and the Lao Holding State Enterprise holds a 20 percent share. The plant is scheduled to commence commercial operations in 2015. Most of the electricity generated will be exported to Thailand, Mr Sommy said. The development is a massive project that involves constructing a lignite mining and electricity generation facility on a 60 square kilometre site, more than 300km northwest of Vientiane. The concession period starts on the project execution date and ends 25 years after the start of commercial operations."
Data source
Media report
Date
2015-11-30
Remark
VIentiane Times report on 30/11/2015: "Hongsa Power to celebrate commercial power generation: Hongsa Power Company Limited will hold a celebration to mark commercial power generation at the Hongsa power plant, with two generators now fully operational and the third set to operate early next year. The ceremony will be held at the Hongsa Mine Mouth Power Plant, Hongsa district, Xayaboury province on December 9, and will be attended by high ranking officials of Laos, Thailand and other foreign guests. The first power generator was officially put into operation in June of this year and the second generator began operating early this month, while the third one is expected to begin generating in March next year, according to the company. The plant will help to create revenue for the government for development and to promote the bilateral economic relationship between Thailand and the Laos. The constructions started in 2011 and are expected to finish next year with a 25 year land concession of 76.2 square kilometres from 2016-2041. The company is expected to spend US$3.7 billion on the construction and the plant will have a total capacity of 1,878 MW or 626MW per generator, using 14.3 million tonnes of lignite per year. Under the agreement, 1,473 MW of electricity will be sold to the Electricity Generating Authority of Thailand (EGAT), and 100MW to Electricite du Laos (EDL). Banpu Power Limited, and Ratchaburi Electricity Generating Holding Public Company Limited both share 40 percent, and Lao Holding State Enterprise shares the remaining 20 percent. The Hongsa Mine Mount Power Project is the biggest thermal power plant in the country. The project respects international environmental standards but some people are still concerned about the pollution it might cause. The company cooperated with the provincial Health Department to ensure and follow up the health of current and coming generations. After the project began construction, it created many jobs for local people, especially young workers. According to a 2014 company report, almost 3,000 Lao people are employed in the plant and this number is expected to rise this year. This has improved living conditions of the local people and reduced the number of people illegally working in Thailand. The company highly values its social responsibility to families affected by the project by promoting agricultural projects, livestock breeding and handicrafts to gain an income. However, many families still suffer as the special projects are located far from their homes. The company also assists the community with educational development and health promotion by constructing schools and dispensaries and handing over equipment within the district, as well as road construction works.
Data source
Company sources
Promised or received compensation
Houses replaced, 2 ha agric land per household, employment opportunities
Number of people actually displaced
2036
Mineral

Coal

Use of produce
Export