Malaysia’s Kumpulan Powernet Bhd has secured an MYR 66 million (USD15.9 million) contract from Zhenghong Building Road & Bridge Construction to build a hydropower plant at Nam Samoy in Vientiane, Laos.
Under the contract, the Malaysian firm will undertake, among others, the design, supply, construction, commissioning and completion of an 8 MW dam, New Straits Times reported.
The two parties will sign a definitive agreement within 30 business days from the date of the award, and the project is expected to be completed within 18 months from the commencement date.
“The company’s move is in line with our plans to expand into the provision of project management and construction-related activities in energy and utilities, infrastructure and logistics with a focus to incorporate green technology and green energy element,” Powernet group managing director Mustakim Mat Nun said, as quoted by New Straights Times.
Laos has increased its electricity exports by 145 percent over the past five years amid a growing number of hydropower plants.
The country also sells over 570 MW to Vietnam, and the Lao government expects to increase the power supply to 1,000 MW in 2020, to 3,000 MW in 2025, and to 5,000 MW by 2030.
In addition, Laos supplies 10 MW of electricity to Myanmar a year and will sell 20 MW more by 2022. The figure is expected to grow as the governments of Laos and Myanmar signed a cooperation contract on purchasing 100 MW of power in 2023, and 300 MW in 2025.
Meanwhile, Laos and Cambodia signed an agreement in 2019 in energy cooperation development of 6,000 MW by 2030.
Further afield, Laos has exported 100 MW of electricity to Malaysia via Thailand, and the Lao government expects to sell 300 MW more in 2020.