$1.2b power plant in Laos

A Consortium of South Korean and Thai firms signed an agreement on Monday to build a US$900 million (S$1.2 billion) hydroelectric power plant in Laos, company officials said.

The consortium involves Thai power supplier Ratchaburi Electricity Generating Holding and two South Korean firms, SK Construction and Korea Western Power.

SK Construction said a memorandum of understanding was signed between the consortium and the Electricity Generating Authority of Thailand (EGAT), which will sell electricity from the plant across Thailand.

The plant, capable of generating up to 390 megawatts, will be located at Senamnoi, in southern Laos.

SK Construction is responsible for financing and building the plant, while Korea Western Power will maintain it.

Construction will begin in 2013, an SK Construction spokesman said, adding the consortium would operate the plant for 27 years. ‘We hope the new project will help create new jobs and eventually expand much-needed energy infrastructure in Laos,’ he said.