Lao Energy Firm Earns US$21.7m From Nam Theun 2 Dam

By VientianeTimes, August 16th, 2013

The state-owned Lao Holding State Enterprise (LHSE), a major energy developer, earned about 170 billion kip (US$21.7 million) from the Nam Theun 2 (NT2) hydropower project in the first six months of this year.

LHSE Deputy General Manager, Dr Sayphet Aphayvanh, reported at the biannual meeting on Tuesday that the income includes the first dividend of about US$4.45 million and the NT2 debt service reserve account of more than US$17.31 million.

Dr Sayphet Aphayvanh speaks at the biannual meeting of the Lao Holding State Enterprise.  The company also made a payment of more than 138.23 billion kip (US$17.7 million) in regard to debts or loans, interest, taxes and dividend in the first six months of this year, according to a handout.

Dr Sayphet said the enterprise had paid principle and interest of more than US$2.4 million to the Ministry of Finance earlier this year.

“We have provided more than US$15.31 million in contributions to government coffers,” he said.

The contributions to the nation’s wealth include a dividend tax of over US$2.17 million, the last six months profit tax of over US$3.14 million and the enterprise’s net profit of US$10 million in advance.

The LHSE was set up by the government in February 2005 to facilitate investment in energy generation.

Its first investment was in the NT2 dam, and it now holds a 25 percent stake in the NT2 Power Company Limited (NTPC).

NT2 is the largest ever single project developed in Laos, with an installed capacity of 1,070 megawatts operating within Borikhamxay and Khammuan provinces.

“The government received more than 37 billion kip (US$4.75 million) in royalties from the project in the first six months of this year,” Dr Sayphet said.

The government received a much larger amount in royalties from the NT2 dam in 2012 than in the previous years.

LHSE reported recently that the government received almost 119.3 billion kip (US$14.91 million) in royalties from the project last year and about 93.3 billion kip (US$11.66 million) in royalties in 2011.

NTPC also paid out a large amount of money on salaries tax, grants for social and economic development, irrigation schemes, national events and education.

It is expected the government will earn more than 15.6 trillion kip (US$1,953.29 million) from the project over the 25 year concession period, the report noted.

LHSE is now a shareholder in several power plant projects generating electricity for export and local supply. The projects include NT2, Hongsa Thermal Electric Power, Xe Pian-Xe Nam Noi and Nam Ngiep 1.

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