NAM LONG HYDROPOWER PROJECT
01. OVERVIEW
In the end of 2006, the Memorandum of Understanding (MOU) for the development of Nam Long Hydropower Project, was signed between the relevant authorization of Luang Nam Tha Province and Luang Paseuth Construction Sole Co., Ltd (LCC). LCC commenced Pre-feasibility Study and the Initial Environment Evaluation of this project, by their first site survey in February 2007 for engineering data collection that related to the study. In order to implement the Nam Long HydroPower Project, Nam Long Power Co., Ltd. (NL) has been established between Luangpaseuth Construction Sole Co., Ltd. (LCC) and Electricite Du Laos (EDL). The purpose of Nam Long Power Co., Ltd. is to Build, Own, Operate and Transfer (BOOT scheme) the Nam Long Hydropower Project.

Nam Long Hydropower Project is a 5MW project, the forecasted annual electricity production is about 37 GW/h. Since Luang Nam Tha was behind in attainment of the EDL grid, it started import electric from China in 2003. The import electricity mainly is to supply central Namtha and Sing Districts. In overall about 35% of the total households of the Province has been electrified. Long district is one of non-electrified districts belong to Luang Nam Tha Province. It is the town where Nam Long Hydropower Project to be located and only 18km from the town center. Long District is one potential electricity consumer of the Project. In addition, there are copper mining invested by Chinese company located just 21 km from the Project Site. This mining needs electric power to feed their processing plant initially about 3 MW and ready to double its capacity within couple months. Moreover, Long district has large potential for tourism industry due to its beautiful nature and nice whether almost year round.

The Feasibility Study has presented a large interest in Nam Long Hydropower Project it would be the local energy source for Luang Nam Tha Province, and may consequently replace China electricity import. It is an important step toward energy independence for Laos.



02. BENEFITS
The Nam Long Hydropower Plant is free of the environmental impacts associated with large-scale projects because it use a “run of river” design that does not require a large dam and storage reservoir. Instead, run of the river projects generate electricity by diverting only part of the stream. This produces relatively little change in the stream channel and flow, and minimizes impacts on fish migration, water quality, and wildlife habitat.

03. FINANCIAL INFORMATIONS
The project will be financed by a project finance method which is mixture of equity and shareholders loan. It is assumed here the project company will put up the equity covering 30% of project cost, while loans cover the remainder. The equity share of the Luangpaseut Construction Sole Co., Ltd. is 80% and the equity share of EDL is 20% of the total equity.

Firstly the FIRR of the project is considered acceptable. This exceeds significantly the interest of loans (10%). This means Nam Long is worthwhile for implementation from the view point of investor.
04. TECHNICAL INFORMATIONS
Nam Long Hydro Power Project is a run-off river scheme, meaning that the power generation will depend on the immediate river water-flow. The project includes a dam/weir (gravity over spill type), a water intake equipped with a settling basin, a 3500 m length reinforced concrete headrace channel, a forebay (head basin), a steel pen-stock and a power house equipped with 2 pelton turnbines.

Nam Long Technical Data
05. PROJECT OVERALL VIEW


PROJECT TIME FRAME

06. HYDROPOWER AS A GREEN AND CLEAN ENERGY PLATFORM
With carbon fuels under supply stress, hydropower present one functional clean and green energy alternative. here is an overview of hydropower and its practical application in modern society. There are many different types of alternative energy available today. from solar panels to wind turbines to geothermal energy sources, the renewable energy field is exploding. Nations throughout the world are also coming up with their own ways of reducing usage of polluting and traditional energy sources, with clean and green hydro energy being a popular solution. using water as an energy source has been around for ages. with the addition of modern technology, it has become a more efficient and useful resource for generating power for hungry world.

Hydropower generates about 20 percent of the electricity generate in the world, making it the most widely used alternative energy source on earth. Hydropower is a major player in the energy game. Frankly, it should be used even more where possible. Currently, the energy produced via hydro-power production replace the use of 22 billions gallons of oil each year. That is a significant number, but more may be about to come.

Compare to carbon fuel, hydropower is a very attractive way to meet our energy demands.



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