The Xayaburi Dam on the Mekong River is scheduled to begin commercial operations next month, and dam construction is nearing completion. The opening ceremony of the dam operation is expected to be held on November 28, and November 29 will be the beginning of the 29-year franchise period.
The Xayaburi Dam is a run-of-river hydropower station that began construction in 2012 with an installed capacity of 1,285 MW and cost approximately US$ 3.8 billion. The dam is one of the priorities of the Lao government and aims to contribute to socio-economic development through the use of advanced technology.
During the 29-year franchise period, the Lao government is expected to earn $3.9 billion from dam operations, including royalties of US $1.897 billion and taxes of US $637 million. The Lao Government is committed to using this funding to fund poverty alleviation plans and infrastructure
development so that Laos can catch up with other countries in terms of overall development.
Some hydropower plants under construction are expected to be operational by the end of this year, including Don Sahong, Nam Ngum 3, Nam Ngiep 1 and Xe-Pian Xe-Namnoy.
At present, Laos can produce about 4,500 megawatts of electricity for export, and when the Shay Buri dam starts generating electricity, the amount of electricity exported will increase.
In addition, Laos Minister of Energy and Minerals Khammany Inthirath said that Laos has signed some power trade agreements with neighboring countries and is discussing the possibility of more
electricity sales in the future.