Boualapha Power Project
Boualapha Power Project formerly known as Khammoune Coal Fired Power Plant2,000 MW Ultra Supercritical Coal Fired Power Plant located in Boualapha District, KhammouneProvince, Lao PDR. The project started in 2016 with full cooperation between Petroleum Trading Lao Public Company Limited (through Lanexang Property and Power), Power Line Engineering and Shanghai Electric. To date the following has been achieved.
1. Memorandum of Understanding for the development, finance and construction of Coal Fired Power Plant in Khammouane, Lao PDR on 5th April 2016 between Shanghai Electric and Lanexang Property and Power (Lanexang).
2. Letter of Interest for Buyer’s Credit Insurance from China Export & Credit Insurance Corporation issued on 8th December 2016.
3. Letter of Interest with indicative term sheet from Bank of China issued on 15th December 2016
4. Memorandum of Understanding to undertake feasibility study of Khammoune Coal Fired Power Plant entered into on 25th October 2020 between The Government of the Lao PDR (GOL) and Lanexang.
5. Memorandum of Understanding was entered into on dated 5th February 2018 between Vietnam Electricity and Lanexang, to allow Lanexang to apply for permission and approval from the Government of the Lao PDR to invest, own and operate the Khammouane Coal Fired Power Plant in Khammouane Province, Lao PDR, transmission lines facilities in order to sell electricity to Vietnam Electricity (EVN).
6. Feasibility Study for the project completed in September 2018 and GOL has approved the Project and the Feasibility Study on 29th March 2019
7. Project Development Agreement entered into on 12th August 2019 between GOL and Lanexang to formalize the contractual relationship on an exclusive basis and to enable for project documents necessary to develop the Project to be completed jointly to reach financial close.
8. GOL issued a letter of support from Ministry of Energy and Mines dated 13th November 2019 to allow Lanexang to approach and negotiate for Power Purchase Agreement with EVN.
9. Lanexang issued a tariff offer letter to EVN in March 2020.
10. GOL and Lanexang entered into negotiation on Concession Agreement in July 2020 and expect to conclude the agreement in January 2021.