http://www.sinohydro.com
November 26, 2007

China’s Sinohydro Corporation has signed an agreement to sell electricity to Thailand’s Electricity Generating Authority (EGAT) from future hydro dams on Nam Ou, a large Mekong tributary in Laos.

The deal is worth US$2 billion and signifies a new era of cooperation between Sinohydro Corporation, Thailand’s Department of Energy, and EGAT (Electricity Generating Authority of Thailand), according to Sinohydro’s web site. The Sino-Thai deal was signed at Sinohydro’s headquarters on November 26 in Beijing by Thailand’s Department of Energy Secretary, Dr. Peng Chai, EGAT president, Mr. Songbu [last name missing], Chief of Lao PDR Energy Promotion Development Bureau, Department of Energy and Minerals, and Sinohydro managers Fan Jixiang and Huang Baodong.

Sinohydro began studying Laos’ Nam Ou hydropower potential in 2005, and proposed a multi-stage Nam Ou build-operate-transfer (BOT) project, which the Lao government approved in October 15, 2007.

The Sino-Lao agreement was signed in Vientiane by Sinohydro’s representative in Laos, Shen Decai, and officials with Laos’ Planning and Investment Committee and Electrical Power Office. Chinese embassy economic counsellors, governors of Luang Prabang and Phong Saly provinces, and other high-ranking government officials attended the
signing ceremony.

According to the plan, up to 7 dams will be built in Nam Ou basin, and 90% of the dams’ power output will be sold to EGAT.

In May 2005, Sinohydro signed an agreement with the Lao government to develop the 640-MW Nam Ou 8 hydroelectric power station as a Build-Operate-Transfer investment.
Nam Ou [Nam is Lao for river] is the largest Mekong tributary in Laos. It is 475 kilometres long and originates in China.

On December 14, Bangkok Post reported that Thai officials are finalizing an agreement to purchase power from a Nam Ou hydropower plant, with an installed capacity of
1043 MW, which is due to start operating by 2013.

Sinohydro statements translated by Kevin Li