The Phonesack Group Co., Ltd is investing USD 4 billion in the construction of a large coal-fired thermal power plant in Xekong Province, with the power generated to be sold to Cambodia.
A groundbreaking ceremony for the plant took place at the site in Kaleum district on 2 April.
The plant will have a generating capacity of 1,800 megawatts and will become one of Laos’ most important energy industry development projects, the President of the Phonesack Group, Phonesack Vilaysack, said.
When the plant is built, the electricity generated will be transmitted to Cambodia’s energy grid under a Power Purchase Agreement with the state-owned Electricite Du Cambodge (EDC).
Construction will be divided into three phases, with the first power plant set to begin generating electricity in January 2028 and full completion and operation planned for January 2030.
The project will be managed by Phonesack Group’s subsidiaries Xekong Thermal Power Co., Ltd and Xekong Power Plant Co., Ltd.
In addition to the construction of the power plant, the project includes the construction of a 500-kilovolt, 253-kilometre transmission line connecting the power plant to the Lao-Cambodian border.
The project will use advanced combustion technology that complies with international standards to ensure reliability, safety, and environmental responsibility.
The Chairman of the Board of Directors of PSG Corporation Public Company Ltd., Van Hoang Dau, said the project is also a collaboration between China Western Power Corporation, a supplier of mechanical and electrical equipment, and PSG Corporation Public Company Ltd.
The Lao company is responsible for construction and supporting systems to combine international technology and Lao people’s skills.
Petro Vietnam Power Corporation will provide training to local staff in plant operation and maintenance, ensuring that long-term benefits are rooted in the community.
Van Hoang Dau thanked Vietnam’s Military Commercial Joint Stock Bank (MB Bank) for providing financial support for the project and said the company would develop the project to international standards of efficiency, respect the environment, help to improve local people’s living standards, and contribute to the overall sustainable development of Laos.