30 C
Vientiane
Wednesday, June 19, 2024

Nam Theun 2 Power Company Boosts Lao Government Revenue with Significant Tax Contribution

This Week

Nam Theun 2 Power Company handed over more than USD 15 million in income taxes from its electricity production in 2023 to the Lao government. Additionally, the company has made an advance payment of over USD 3.8 million for the first quarter of 2024.

The handover ceremony, held on 28 May, was attended by Marc-Antoine Rupp, Chief Executive Officer of Nam Theun 2, and Vanxay Phongsavanh, Governor of Khammouane Province. 

During the event, Rupp highlighted that this payment marks the first significant contribution between Khammouane Province and Nam Theun 2 Power Company during the 25-year concession period, from 2010 to 2035. It is anticipated that over this period, Nam Theun 2 will contribute approximately USD 2 billion to the Lao government through tax obligations, capital costs, and dividends to Lao shareholders.

(Photo: Nam Theun 2)

Governor Vanxay expressed gratitude towards Nam Theun 2, emphasizing the company’s crucial role in supporting Khammouane Province’s budget and contributing to Laos’ socio-economic development.

The Nam Theun 2 hydropower project, with a capacity of 1080 MW, commenced commercial operations in 2010 under a public-private partnership. The Lao government, through the Lao Holding State Enterprise (LHSE), holds a 25 percent stake in the project. The remaining shares are held by Electricité de France (EDF) at 40 percent and Electricity Generating Public Company Limited (EGCO) at 35 percent.

Annually, Nam Theun 2 generates 6,000 GWh of electricity. Of this, 5 percent is allocated to Laos, while the remaining 95 percent to Thailand’s power grids, according to state media

The construction of the Nam Theun 2 project necessitated the resettlement of approximately 6,300 individuals from 15 villages in the Nakai Plateau, Khammouane Province. In response, the project has provided resettlement communities with housing, community facilities, and livelihood programs in various sectors like fisheries, agriculture, livestock, forestry, and small businesses to improve their incomes.

Latest article