An extremely challenging project led by Kansai Electric Power in Laos with the vision of building a large scale hydro power plant equivalent to Kansai's Kurobegawa No. 4 Hydro Power Station in Japan.
AsiaLaos
Nam Ngiep 1 Hydropower Project
Equity participation
45%
(Equivalent to 131MW)
The Nam Ngiep 1 hydropower plant is a large-scale dam type power station located on the Nam Ngiep River, a tributary of the Mekong River that flows through the border between Lao People's Democratic Republic (Laos) and the Kingdom of Thailand (Thailand). The Nam Ngiep 1 project has two power stations with a total capacity of approximately 290 MW. The Main Power Station is equipped with a total of approximately 270MW power units and a large-scale dam which is 167m high and 530m long in its dam crest. The Main Dam is equivalent to Kurobe Dam of the Kansai Electric Power Company in terms of its size. The Re-regulation Power Station is equipped with an approximately 20MW power unit.
The Nam Ngiep 1 is a BOT (*) project which sells its generated electricity to Thailand and Laos for 27 years. The Main Power Station supplies electricity to Electricity Generating Authority of Thailand and the Re-regulation Power Station supplies electricity to Electricité Du Laos.
*) BOT: a form of project financing, wherein a private entity receives a concession from the private or public sector to finance, design, construct, own, and operate a facility stated in the concession agreement.
History of Project Development
- April 2006
- Exclusive development right granted by the government of Laos to Kansai Electric Power.
- April 2013
- Establishment of Nam Ngiep 1 Power Company ("NNP1")
- May 2013
- Signing of Shareholders Agreement (Acquisition of Stock in May)
- August 2013
- Signing of Power Purchase Agreement and Concession Agreement
- August 2014
- Signing of Loan agreement
- October 2014
- Start of Construction of 2 dams and 2 power stations
- September 2019
- Commencement of Commercial Operation
The project requested around 3,500 local people to relocate mainly due to the impounding of the main reservoir.
It was quite a challenge for Kansai Electric Power in undertaking the Nam Ngiep 1 Project to construct a large-scale concrete gravity dam and long-distance transmission lines. Moreover, it was also crucial to request around 3,500 residents living in five villages to relocate in enabling the project to go ahead. The affected areas include the land and houses of over 550 households inundated by the project's main reservoir.
In order to address and alleviate their concern, staff from Kansai Electric made a lot of efforts to hold long and detailed consultation with local communities including the Hmong, the largest ethnic group in the project area. One of the above efforts includes a demonstration farm NNP1 offered to the relocated people so that they could visualize a new life in the future resettlement village. NNP1 provided workshops and training sessions on rice cultivation and growing agricultural produce in order to alleviate each one of their concerns. The relocation was finalized in April 2018 thanks to devoted efforts from the local staff in the Environmental and Social Division of Nam Ngiep 1 Power Company Ltd. along with strong supports from the Government of Laos. Besides houses for all re-settlers, the construction of buildings at the Phuhomxay Resettlement Area comprises access roads, a bridge across the Nam Ngiep 1 Project Area, kindergartens, schools and accommodation for the teachers, a market, a village meeting hall and a bus station.
Development of paddy fields, fields for cropping and tree plantation areas, grazing land, and an irrigation systems are all provided. Livelihood and Income Restoration Plan is under implementation as part of mitigation measures for Project Affected People: the aim is for a 200% increase in the average community income from their current baseline income within ten years after COD. The Nam Ngiep 1 Project is committed to long-term development of these communities and we believe the above development plan will be mutually beneficial to the resettled villagers and the Project.

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Health care
- Construction of a health center
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Education
- Construction of a kindergarten, a primary school, and a secondary school
- Scholarship program to pursue higher education at a recognized college and university
- Adult literacy training for resettlement villagers who cannot read or write
- Orientation program for school teachers stationed in the resettlement village
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Agricultural Development
- Development of paddy fields, cash crop and fruit tree plantation areas: 2 hectares for each household
- Development of gazing land: 1.2 hectares for each household
- Soil improvement (acidic soil amelioration and enrichment with fertilizers)
In support of long term income via agriculture we have set a goal to double the residents' income within ten years after COD.
We have placed a strong focus on environmental conservation.
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Watershed management and protection
- Preservation measures such as forest protection, land use management and fisheries management
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Biodiversity conservation
- Engagement in protection of endangered species in the watershed.

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Biomass clearance
- Clearances of vegetation in the impounding reservoir to prevent sunk trees from being decayed.

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Biodiversity offsets
- Conservation of the original ecosystem by establishing a substitute habitat and compensating for residual losses from the hydropower project.

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