In Laos, the peaceful life of many villages is often disrupted by major infrastructure development projects aimed at promoting greater economic benefit. One such project affected several villages in northern Luang Prabang Province, when both public and private industries decided to build the Nam Khan 3 Hydropower Plant on the Khan River in Xieng Nguen district, between Donmo village and Khonvaiy village on 25 June, 2012.
The project led to the relocation of hundreds of families, including Top – a pseudonym to protect his identity. It wasn’t an easy transition for the 42-year-old resident of Samakkhyxay village, who moved from the area where the dam is currently situated to a location in front of it.
Top spent his entire life in the old location, he grew up and later raised his own family there. Yet, all of a sudden, he had to move out.
Sitting on the porch of his new two-story house in the resettled village, he shared the emotional toll of leaving his lifelong home but acknowledged the project’s broader benefits.
“At first, I was unhappy to leave, but the EDL staff explained it was for the province’s good,” he said.
Despite the challenges of relocation, Top appreciated the assistance provided.
“They helped us move, built homes, donated to schools, provided jobs, and even taught children how to swim.”
Luang Prabang is home to several hydropower plants, including the Nam Khan 3 Hydropower Plant on the Khan River, a tributary of the Mekong.
Operating since 25 June, 2016, the plant has two 30 MW generators, with a total capacity of 60 MW, producing around 240 GWh annually to power northern Laos. Covering a 7,049-square-kilometer catchment area, it is one of three planned projects along the Khan River.
However, the establishment of the hydropower plant required the relocation of 650 families from ten villages in Phoukhoun and Phonexay districts.
EDL-Generation Public Company (EDL-Gen), the publicly listed energy firm overseeing the project, emphasized its commitment to fair compensation and comprehensive support for the affected communities.
“Relocation was a significant challenge, but we prioritized fairness and support for the families involved,” said Sengchan Xayavong, Director of Nam Khan 2 and 3 Hydropower Plants under EDL-Gen.
According to him, the company facilitated the relocation process by constructing new two-story homes with zinc roofs for the affected families.
Supporting Communities Through Transition
To help the resettled families adapt, EDL-Gen also organized training programs focused on practical skills like farming, fishing, and livestock care.
Healthcare initiatives also formed part of the company’s efforts, including free bird flu vaccinations for the relocated residents. Sengchan reiterated EDL-Gen’s commitment to improving their living standards as well as ensuring the environmental sustainability of the project.
“Going hand in hand with supporting the resettled residents is the environmental conservation, which is integral to the Nam Khan 3 Hydropower Plant’s operations,” Sengchan noted.
According to the official, the plant collaborates with local communities on initiatives such as fish releases, tree planting, and waste collection campaigns to encourage sustainable practices.
Despite these efforts, challenges persist, particularly with plastic waste management in areas where environmental awareness is limited.
“We’re addressing this by putting up no-litter signs and running awareness campaigns,” Sengchan noted, adding that language barriers and limited education among some groups, including the Lao Soung (Hmong highland people), remain obstacles.
However, efforts didn’t go unnoticed. A young resident from Phongkham village mentioned the positive changes the hydropower projects brought to local villages, particularly in addressing electricity reliability.
“Before the dams, life was hard because the electricity was unreliable,” he said. “Now, with stable electricity, Luang Prabang is better equipped as a tourist destination.”
In addition to community engagement, the plant also supplies clean water to key tourist hubs in northern Laos, such as Xieng Nguen village and Tat Sae Waterfall. However, water distribution is managed by EDL-Gen headquarters, as Sengchan clarified: “Our role is to supply clean water to the station, which oversees its distribution.”
From Energy to Tourism
Looking ahead, EDL-Gen envisions transforming the areas around the Nam Khan 3 dam into a tourist destination. Drawing inspiration from the success of Nam Ngum 1, Sengchan believes the site has the potential to boost tourism in Luang Prabang Province.
“Luang Prabang Province doesn’t have enough tourist attractions beyond spots like Kuang Si Waterfall and Sae Waterfall,” Sengchan noted.
“With the vast space around Nam Khan 3, this area could become a major tourist destination. The revenue would not only benefit EDL-Gen but also the entire province.”
While the idea is still in its infancy, Sengchan expressed optimism about its potential.
“The plan hasn’t been fully developed yet, so there are no concrete details to share at this time,” he said.
Located about 29 kilometers southeast of Luang Prabang City, the plant is easily accessible via Road No. 13 and a short 5-kilometer drive along the Nam Khan River.
According to Sengchan, the plant was developed to meet several key objectives, the foremost being energy security.
“Our goal is to provide a stable and reliable electricity supply to support the growing demands of northern Laos,” he explained. This dependable energy source also boosts regional economic growth by supporting industries, services, and tourism.
“The Nam Khan 3 Hydropower Plant is a cornerstone of our energy infrastructure in Luang Prabang Province.”
Over 42 months of construction, the project also saw the establishment of a 115 kV high-voltage transmission line connecting the plant to the Xieng Nguen power station.
Spearheaded by the State Electricity Company of Laos (Electricité du Laos) under the Ministry of Energy and Mines, the hydropower plant leverages the river’s energy potential. The project not only enhances energy production but also promotes economic and social progress in the region.
The plant was financed with a total investment of USD 127.77 million, 95 percent of which came from the Export-Import Bank of China (EXIM Bank), with the remaining five percent provided by the Lao Electric Power Company. The loan carries a 20-year term with a 5 percent annual interest rate.
This story was supported by Internews’ Earth Journalism Network.