A hydroelectric power plant in Vietnam

Viet Nam has paved the way for greater energy ties with Laos by ploughing more than half of its total investment in the land-lock country into a hydroelectric power plant.

The 250MW Sekaman 3 plant in Sekong province, that borders the central province of Thua Thien-Hue, Quang Nam and the Central Highlands province of Kon Tum is being built at a cost of 273 million USD by the Viet Nam-Laos Electricity Development and Investment Company.

Once the plant is completed, it will create jobs for locals while transportation and trade between the bordering localities of the two countries will increase, said Lao Economic and Trade Charge d'Affaires to Viet Nam Som Vang Nithavong.

The Electricity of Viet Nam Group has already announced plans to buy 90 percent of all power generated by the plant, which will have an annual capacity of 1 billion kWh a year after its scheduled completion in 2010.

Som Vang Nithavong went on to predict that after Sekaman 3 begins full operations, two way-trade between Laos and Viet Nam would increase to 1 billion USD from the 260 million USD recorded in 2006.

Dependant on the success of Sekaman 3, and planned studies have been completed by the Viet Nam-Laos Electricity Development and Investment Company (VLEDIC), a further eight other hydro-electric power plants could possibly be built in Viet Nam's eastern neighbour.

VLEDIC Director General Nguyen Thang Long said that more than 1.1 billion USD would be invested in the new plants that could begin construction as early as 2008 or 2009.

Source: VNA