Mega First Corp Bhd announced today that its hydropower plant in Laos, the Don Sahong Hydropower Project, has begun commercial operations.
The company, in a filing with Bursa Malaysia, said 80%-owned indirect subsidiary Don Sahong Power Company Ltd (DSPC), has on 4 November received a certificate from the Ministry of Energy and Mines of Laos confirming that the commercial operational date (COD).
“The concession period shall end on the date occurring twenty-five (25) years after the COD, which is on 30 September, 2045,” it said.
“In accordance with the Concession Agreement dated 15 September 2015, DSPC will be exempted from income tax until the fifth anniversary of the COD,” it added.
The Don Sahong project on the Mekong River officially came online in November last year.
The USD 401 million hydropower project, near Khone Falls in Champasack Province, was completed 48 days ahead of schedule, according to the developer, Malaysia’s Mega First Corp Bhd, after construction began in January 2016.
Investors in the project include Mega First, with an 80 percent share, while Laos’s EDL-GEN holds the remaining 20 percent.
The Don Sahong Dam is a run-of-the-river dam at the downstream end of the Hou Sahong channel between Don Sahong and Don Sadam islands. It has an installed capacity of 260 MW.