2. PROJECT PROFILES

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2.1 DON SAHONG HYDROPOWER PROJECT

The Don Sahong project is located in Champassak Province on the Mekong River. It involves the construction of a barrier between two islands in the mainstream and generates electricity from the head provided by the Khone Falls. The layout of the Project is shown in the attached plan. The project is in a sensitive area. As a mainstream project within the Seephandone reach of the Mekong close to the Cambodian border, it is likely to arouse international interest. The Consultant has evaluated the Project using:

• Existing field data – no new field data was collected;

• Updated hydrology (1966 to 2002 streamflow series);

• EVALS hydropower dimensioning and evaluation software;

The technical and economic characteristics of the Project are summarized in the following table. No project interactions were assumed in determining these outputs. The EVALS outputs are provided. Some environmental and social costs are accounted for in the EVALS evaluation and are reflected in the program outputs.

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Technical and Economic Data (Source: EVALS Output):

Development: Installed Capacity Factor Run-of-river Contractual status MOU Level of study PrefeasibilityAccess Roads: New road 5 km Rehabilitation 0 kmHydrology: Name of river Mekong Av. annual precipitation (dam site) 1631 mm/a Ave. Reservoir Inflow 1,0663.4 m3/sReservoir: Full supply level (FSL) 71.00 m asl Minimum operating level (MOL) 71.00 m asl Max storage volume (FSL) 5.91 hm3

Active storage volume hm3

Maximum reservoir area (FSL) 1.6 km2

Reservoir filling time 0.5 monthsDam: Main dam type Concrete Gravity Maximum height 26 m Crest length 110 mSpillway: Spillway type n/a (Mekong) Design discharge n/a (Mekong)Power Station: Type Surface Number of units 4 Turbine type Kaplan Turbine rated head 20 mTransmission: Line Length 198 km Voltage 115 kVOutput: Installed Capacity 56 MW Average generation 356 GWh p.a. Primary generation (95% firm) GWh p.a. Secondary generation 356 GWh p.a. Average plant factor 72 %Economic: Basic project cost (no esc. or IDC) 88.35 mUS$ Capacity cost 1,823 US$/kW Average energy cost 3.2 ¢/kWh Weighted energy cost1 6.4 ¢/kWh

1 The calculation of weighted generation cost values secondary energy at half the value of primary energy

based on a definition of primary energy as energy produced with 95% firmness.

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2.2 HONGSA LIGNITE THERMAL PROJECT

The Hongsa Lignite project is a lignite-fired base load power generation project located in Xayabouri Province on a lignite deposit capable of supporting a 1,400 MW development. The Consultant has evaluated the Project using:

• Existing field data – no new field data was collected;

• SCOPE thermal project evaluation software;

• Spreadsheet calculation of specific generation costs.

The technical and economic characteristics of the Project are summarized in the following table. The SCOPE outputs and spreadsheet calculation of specific generation cost are provided. Some environmental and social costs are accounted for in the SCOPE evaluation. Emission control equipment sufficient to comply with international air emission standards are priced into the project’s capital and operating costs. Parameters and Performance of Honsa Lignite Project

Contractual status Concession Level of study Feasibility Study Market Export

Installed Capacity (MW) 1,400 Fuel Cost ($/tonne) 16 Fuel Heating Value (HHV) (MJ / tonne) 9.1 Fuel Consumption (mill tones p.a.) 11.00 Gross Heat Rate (LHV) (kJ / kWh) 9,500 Plant Factor (%) 82% Gross energy production (GWh p.a.) 9,980 Station Own Use (%) 7.4% Specific Investment Cost ($ / kW) 950

Average cost of energy (¢/kWh) 4.39 Weighted average cost of energy (¢/kWh) 5.27

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The project was initially sized as a 720 MW development. A concession agreement was signed with GOL and a PPA was initialed with EGAT but the Project was unable to attract lender commitment. The tariff agreement with EGAT has since lapsed. The developer has increased the size of the project to capture economies of scale and improve its economic performance. It is also understood that EGAT is categorizing thermal and hydropower projects separately for the purposes of IPP power purchase and this may assist the project in overcoming intense competition from hydropower alternatives. The Project is too large for the domestic market and is being promoted for export to Thailand. It would interconnect with the EGAT system through Mae Moe. Opposition to lignite projects is growing due to their environmental impacts. New emission control technologies are being developed and this could improve the economic and environmental performance of Hongsa.

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2.3 HOUAY LAMPHAN GNAI HYDROPOWER PROJECT

The Houay Lamphan Gnai project is located in Attapeu Province on the Houay Lamphan Nai, a tributary of the Xe Kong. The layout of the Project is shown in the attached plan. The dam is situated on the Bolavens Plateau and the Project generates electricity from the head provided by the Bolavens escarpment. The Project has good year round generation characteristics and is well positioned to reduce dependence on dry season imports in the Southern Grid. The Project has shown promise in a number of inventory level studies and has been identified as the priority project for the Southern Grid in the PSDP power system expansion studies. The Consultant evaluated the Project using:

• Existing field data – no new field data was collected;

• Updated hydrology (1966 to 2002 streamflow series);

• EVALS hydropower dimensioning and evaluation software.

• SESAMEE environmental and social impact assessment.

The technical and economic characteristics of the Project are summarized in the following table. No project interactions were assumed in determining these outputs. The EVALS outputs are provided. Some environmental and social costs are accounted for in the EVALS evaluation and are reflected in the program outputs. The project’s wider impacts have been assessed using SESAMEE and are internalized into the evaluations reported in Section 6 of Volume A, Main Report. Little fieldwork has been carried out and information about the geology and hydrology of the site is limited. The Houay Lamphan Gnai is ungauged and there is an urgent need to improve the certainty of the mean annual flow estimate and to better understand the geology of the dam site and reservoir. A prefeasibility study is recommended to investigate the technical and economic aspects of the Project, including its role in supplying the Southern Grid.

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Technical and Economic Data (Source: EVALS Output):

Development: Installed Capacity Factor 1.75

Contractual status No mandate awarded

Level of study Inventory

Access Roads: New road 36 km

Rehabilitation km

Hydrology: Name of river Lamphan

Av. annual precipitation (dam site) 1,944 mm/a

Ave. Reservoir Inflow 6.4 m3/s

Reservoir: Full supply level (FSL) 820 m asl

Minimum operating level (MOL) 800 m asl

Max storage volume (FSL) 269 hm3

Active storage volume 150 hm3

Maximum reservoir area (FSL) 9.0 km2

Reservoir filling time 14.5 months

Dam: Main dam type RCC Gravity

Maximum height 77 m

Crest length 74.49 m

Spillway: Spillway type Gated Ogee

Design discharge 810.00m3/s

Power Station: Type Surface

Number of units 2

Turbine type Pelton

Turbine rated head 567 m

Transmission: Line Length 44 km

Voltage 115 kV

Access Roads: Length of new road 36 km

Length of rehabilitated road 0 km

Output: Installed Capacity 56 MW

Guaranteed capacity (95%) 54 MW

Average generation 249 GWh p.a.

Primary generation (95% firm) 240 GWh p.a.

Secondary generation 8 GWh p.a.

Average plant factor 50 %

Economic: Basic project cost (no esc. or IDC) 66.51 mUS$

Capacity cost 1,373 US$/kW

Average energy cost 3.4 ¢/kWh

Weighted energy cost2 3.4 ¢/kWh

2 The calculation of weighted generation cost values secondary energy at half the value of primary energy

based on a definition of primary energy as energy produced with 95% firmness.

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2.4 NAM BAK 2B (NAM CHA) HYDROPOWER PROJECT

The Nam Bak 2B project is a basin transfer project located in the Xaisomboun Special Zone. It diverts water from the Nam Bak to the Nam Xan and generates electricity from the head created by the elevation difference between the basins. The layout of the Project is shown in the attached plan. Nam Bak 2B was evaluated as a storage project by Knight Piesold (1997) and performed well. Subsequent inventory level studies confirm the Project’s promise. The developer with the current mandate undertook an inventory study of the site and configured the Project as a run-of-river. The deletion of the dam and reservoir reduced the Project’s capital cost and improved its average generation cost, but its weighted generation cost and its performance in system expansion studies suffered as a result of reduced generation in the dry season. The Consultant evaluated the Project using:

• Existing field data – no new field data was collected;

• Updated hydrology (1966 to 2002 streamflow series);

• EVALS hydropower dimensioning and evaluation software;

• SESAMEE environmental and social impact assessment.

The EVALS outputs are provided. The technical and economic characteristics of the Project are summarized in the following table. No project interactions were assumed in determining these outputs. Both the Nam Bak and Nam Xan flow into the Nam Ngum reservoir and there would therefore be little impact on generation at Nam Ngum once the Nam Bak reservoir has filled for the first time. As a basin transfer project, two basins are impacted. Some environmental and social costs are accounted for in the EVALS evaluation and are reflected in the program outputs. The project’s wider impacts have been assessed using SESAMEE and are internalized into the evaluations reported in Section 6 of Volume A, Main Report.

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Technical and Economic Data (Source: EVALS Output):

Development: Installed Capacity Factor 1.75 Contractual status MOU Level of study InventoryAccess Roads: New road 50 km Rehabilitation 5 kmHydrology: Name of river Nam Bak Av. annual precipitation (dam site) 1,944 mm/a Ave. Reservoir Inflow 9.3 m3/sReservoir: Full supply level (FSL) 1,030.00 m asl Minimum operating level (MOL) 1,000.00 m asl Max storage volume (FSL) 186 hm3

Active storage volume 119 hm3

Maximum reservoir area (FSL) 4.8 km2

Reservoir filling time 5.5 monthsDam: Main dam type Earthfill Maximum height 77 m Crest length 510 mDiversion: Design discharge 1,300 m3/s Tunnel Diameter 11.5 m Tunnel Length 550 mSpillway: Spillway type Gated Chute Design discharge 1,022.00 m3/sPower Station: Type Surface Number of units 3 Turbine type Pelton Turbine rated head 583 mTransmission: Line Length 24 km Voltage 115 kVOutput: Installed Capacity 85 MW Guaranteed capacity (95%) 80 MW Average generation 389GWh p.a. Primary generation (95% firm) 355 GWh p.a. Secondary generation 33 GWh p.a. Average plant factor 52 %Economic: Basic project cost (no esc. or IDC) 161 mUS$ Capacity cost 2,229 US$/kW Average energy cost 5.2 ¢/kWh Weighted energy cost3 5.4 ¢/kWh

3 The calculation of weighted generation cost values secondary energy at half the value of primary energy

based on a definition of primary energy as energy produced with 95% firmness.

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2.5 NAM BENG HYDROPOWER PROJECT

The Nam Beng Hydropower Project is located in Oudomxay Province on the Nam Beng. The layout of the Project is shown in the attached plan. The project invoves the construction of a dam of about 40 m height and a power station at its base which generates from the head created by the dam. The Consultant has evaluated the Project using:

• Existing field data – no new field data was collected;

• Updated hydrology (1966 to 2002 streamflow series);

• EVALS hydropower dimensioning and evaluation software;

The technical and economic characteristics of the Project are summarized in the following table. With a weighted generation cost over 6 ¢/kWh, the project is not attractive from an economic perspective but there are few good sites in northern Lao PDR and Nam Beng may find favor in a system sense by virtue of its location. No project interactions were assumed in determining these outputs. The EVALS outputs are provided. Some environmental and social costs are accounted for in the EVALS evaluation and are reflected in the program outputs.

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Technical and Economic Data (Source: EVALS Output):

Development: Installed Capacity Factor 1.75 Contractual status No mandate issued Level of study InventoryHydrology: Name of river Nam Beng Av. annual precipitation (dam site) 1,944 mm/a Ave. Reservoir Inflow 25.4 m3/sReservoir: Full supply level (FSL) 430.00 m asl Minimum operating level (MOL) 410.00 m asl Max storage volume (FSL) 101 hm3

Active storage volume 97.90 hm3

Maximum reservoir area (FSL) 12.0 km2

Reservoir filling time 1.5 monthsDam: Main dam type RCC Gravity Maximum height 37 m Crest length 160 mSpillway: Spillway type Gated Chute Design discharge 1,890 m3/sPower Station: Type Surface Number of units 2 Turbine type Francis Turbine rated head 78 mTransmission: Line Length 148 km Voltage 115 kVOutput: Installed Capacity 33 MW Guaranteed capacity (95%) 33 MW Average generation 125 GWh p.a. Primary generation (95% firm) 104 GWh p.a. Secondary generation 21 GWh p.a. Average plant factor 43 %Economic: Basic project cost (no esc. or IDC) 61.54 mUS$ Capacity cost 2,081 US$/kW Average energy cost 6.0 ¢/kWh Weighted energy cost4 6.5 ¢/kWh

4 The calculation of weighted generation cost values secondary energy at half the value of primary energy

based on a definition of primary energy as energy produced with 95% firmness.