A signing ceremony for power purchase agreements (PPAs) for the 69-MW Nam San 3A and 45-MW Nam San 3B hydropower plant projects in Laos between Electricity of Vietnam (EVN) and the Phongsubthavy Group from Laos took place on January 4 within the framework of the 42nd Vietnam - Laos Intergovernmental Committee. The ceremony was witnessed by Prime Minister Nguyen Xuan Phuc and Lao Prime Minister Thongloun Sisoulith.

The Nam San 3A and Nam San 3B plants have been operating with total installed capacity of 114MW and annual average electricity output of 364 million kWh per year at Nam San 3A and 232 million kWh at Nam San 3B. These are two of eleven hydropower plant projects under the Nam Mo Group of hydropower plant projects being developed by the Phosubthavy Group in order to sell electricity to Vietnam through a 220kV transmission line, which will be co-invested by the Group for the section in Laos and EVN for the section in Vietnam. The transmission line is scheduled for completion by 2022.

The power purchase agreement was signed by Mr. Tran Dinh Nhan, General Director of EVN, and Mr. Phongsavath Senaphuan, Chairman of the Phongsubthavy Group, witnessed by Minister of Industry and Trade Tran Tuan Anh and Minister of Energy and Mines Khammany Inthirath.

The Ministry of Industry and Trade and the Lao Ministry of Energy and Mines completed negotiations and signed an agreement last February on cooperation in the development of electricity and mine projects during an official visit by Party General Secretary and State President Nguyen Phu Trong to Vietnam’s neighbor.

On June 24, the Phongsubthavy Group, the first power plant developer in Laos, signed a PPA with EVN for the Nam Sum 3 hydropower plant in Houaphan province, Laos, with a total capacity of 156MW and output of 626 million kWh per year.

Importing electricity from neighboring countries, including Laos, is one of the immediate measures being undertaken to help Vietnam meet its electricity demand for socioeconomic development.