The Lao Holdings State Enterprise (LHSE) expected that revenues from the next six months of operations are set to increase with the government’s bottom line to benefit from increased royalties linked to the company’s business operations.
First six months of this year, the company has seen some US$10.37 million in returns on investment, of which US$8.75 million was derived from the Nam Theun 2 hydropower project, over US$1.2 million from mining section of the Hongsa Mine Mouth Power Project and about US$400,000 from other income, LHSE General Manager Dr Somboune Manolom told a first six months of the year review meeting last week.
The meeting was attended by Deputy Minister of Energy and Mines, Mr Viraphonh Viravong, government officials from relevant sectors and the company board members council along with its technical employees.
From the achievement, the company handed over its obligation of US$917,568 to the Ministry of Finance, he said.
Over the six month period the company had drawn a loan of almost US$102 million to invest in the Hongsa Mine Mouth Power Project, US$300,000 for the Xepien-Xenam Noy hydropower project and US$2.8 million for Nam Gniep I hydropower project as well as servicing debt payments for both capital and interest of about US$2.55 million for the Nam Theun 2, Dr Somboune said.
The government received royalties and profit tax of some US$16.6 million from projects that the company was involved in.
The fly ash business associated with Hongsa Mine Mouth Power Project is progressing after infrastructure construction was almost completed, it also reported.
There are currently many companies interesting in purchasing fly ash for a variety of uses, of which five companies already signed trading agreements, he said.
Until the end of June, the company has sold 2,494 tonnes of fly ash worth US$10,571, a figure expected to increase in the latter six months.
He explained that first six months of the year, the business operation of the company had progressed well and attracted revenue to the government exceeding the target set.
Looking to the final six months of the year, leadership provided by government especially the Ministry of Energy and Mines and the company’s board member council would likely result in continued positive results, the meeting heard.
The company holds shares in some four power projects, the Nam Theun 2 (25 percent) with installed capacity of 1,080MW, as well as 24 percent of the Xepien-Xenamnoy hydropower project (410MW), 25 percent of Nam Gniep 1 (290MW) and 20 percent of Hongsa Mine Mouth Power Project (1,878MW).
The Xepien-Xenamnoy hydropower project construction is now 54.64 percent complete while Nam Gniep 1 has progressed to and 42.20 percent, according to the company’s figures.
Source: Vientiane Times