Officials from the National Environment Committee (NEC) last week visited the Theun Hinboun hydropower expansion project in Borikhamxay province and the Nam Theun 2 hydropower project in Khammuan province.

The visit to the two dams was led by Deputy Prime Minister and NEC President Asang Laoly.

During the visit to the Theun Hinboun dam, Mr Asang urged officials in Borikhamxay province to step up improvement of villagers' living standards after they had been relocated to other areas.

Local residents had to move to make way for the expansion of the Theun Hinboun plant and will receive help with new farming and animal husbandry activities.

Mr Asang also said every development project in the province should play a part in ensuring environmental protection.

Further infrastructure development, especially roads to link districts and villages in the province were needed, he said.

A total of 707 families of 4,187 people in 13 villages would be affected by the expansion of the Theun Hinboun hydropower dam, said Deputy Governor of Borikhamxay province Leuam Xonsivilay.

He said provincial officials and the sectors involved had plenty of work to do in moving people out of the area and helping them resettle.

Preliminary work on the Theun Hinboun expansion project began late last year.

The Theun-Hinboun Power Company Limited (THPC) is spending about 6.2 trillion kip (US$720 million) on the project. Twenty percent consists of the company's own equity, with the remaining 80 percent coming from financial institutions.

THPC is carrying out the expansion to boost the distribution of energy for local supply and export and to increase generating capacity from 220 megawatts (MW) to 500MW, which will generate more than 3,000 million kWh of electricity a year.

The project is scheduled for completion by the end of 2012. When the dam is operational, 440MW will be sold to Thailand with the remaining 60MW sold to Electricite du Laos (EDL) for local supply.

THPC is 60 percent owned by the government through EDL, with Nordic Hydro (Statkraft) and GMS Lao each holding a 20 percent share.

The Nam Gnouang River was selected for the expansion project with an installed capacity of 60MW. THPC was the first independent hydropower project in Laos and has operated successfully since 1998. The project began in 1995.

Mr Asang next visited the Nam Theun 2 hydropower project, where 6,933 people in 1,289 families in 23 villages are being relocated, said Governor of Khammuan province Khambay Damlat.

Work on the Nam Theun 2 dam began in mid 2005 and is scheduled for completion in December this year. The dam will generate electricity for both the local and export markets.

The dam will have an installed capacity of 1,070MW of which Thailand will buy 995MW of electricity, and 75MW will be used for domestic consumption.

Investment in the project amounts to more than 11.8 trillion kip (US$1.2 billion).