Vietnam Company Signs Agreement to Build Largest Wind Power Project in Laos

Vietnam's AMI Renewables Signs Agreement for Largest Energy Investment in Laos
FILE: This image is used only for representational purpose (photo: The GIOI Vietnam)

Representatives from the Lao government and Vietnam’s AMI Renewables Quang Binh Investment Joint Stock Company signed an agreement last week in Vientiane Capital to establish a wind power plant project in Sepone, Savannakhet province.

The AMI Savannakhet Wind Power Plant project, with a total capacity of 1,220 MW, has received a total investment of over USD 2 billion. This makes it the largest venture by Vietnam in the energy sector of Laos.

The signing ceremony was presided over by the Minister of Science and Technology, Mr. Boviengkham Vongdara, and the Ambassador of Vietnam to Laos, Mr. Nguyen Ba Hung. It was also attended by the CEO of AMI AC Renewables, Mr. Nguyen Nam Thang, and other officials.

During the ceremony, Mr. Nguyen Nam Thang announced that AMI Quang Binh would finalize and submit the final feasibility report for approval by September 2023. They expect to sign the franchise contract by the end of 2023 and commence construction in the second quarter of 2024. The wind power plant aims to begin commercial electricity generation in the fourth quarter of 2025.

Mr. Nguyen also expressed his commitment to adhering to agreed terms and striving to finish the project ahead of schedule and make practical and effective contributions to the economic cooperation between Quang Binh and Savannakhet, as well as between Vietnam and Laos as a whole.

Dr. Sathabandit Insixiengmay, Deputy Minister of Planning and Investment of Laos, who also took part in the ceremony, emphasized how this project was in line with the government’s five-year socio-economic development plan (2021-2025).

He highlighted the potential of the energy sector in Laos, given its advantageous landscape for the development of energy sources such as hydroelectricity, wind power, and solar power.

Dr. Sathabandit further mentioned that the development of wind energy projects aligns with the country’s goals of transitioning towards a modern, high-quality, green, and sustainable economy.

AMI Quang Binh is a prominent investor in Quang Binh province and has previously invested in the B&T wind farm project, which has a capacity of 252 MW. This new project not only signifies the special solidarity and comprehensive cooperation between Quang Binh and Savannakhet because of its scale and budget but also highlights the strong partnership between Vietnam and Laos.

The Monsoon Wind Power Plant, another wind power plant in Laos, began construction in May. The Asian Development Bank (ADB) and the Monsoon Wind Power Company agreed to a USD 692.55 million credit deal to fund the project, which will comprise 133 wind turbines spread over 1,000 hectares.