THB Group Solo Company has inked an agreement with the Fujian Construction Company of China and the AC and C Company of Thailand to supply crushed stones for construction of the Hongsa lignite-fired power plant in Xayaboury province.
The agreement was signed in Vientiane last week between THB Group Solo Company President Mr Tong Homsombat, Fujian Construction Company President Mr Bounlap Vongphengsy, and AC and C Company representative Mr Alex.
The signing was witnessed by Deputy Minister of Energy and Mines Mr Synava Souphanouvong.
It is expected the Hongsa power plant will become operational in 2015, with a generation capacity of 1,878MW. The sale of electricity generated by the plant to Thailand is expected to begin in 2016.
The project shareholders comprise Ratchaburi Electricity Generating Holding Public Company and Banpu Power Ltd of Thailand, which each hold a 40 percent share, and the Lao Holding State Enterprise, which holds a 20 percent share.
The project began with a survey for lignite in 1994 and consists of two phases: firstly, lignite will be mined locally to supply the plant and, secondly, power will be generated.
During the 25 year concession period, the power plant expects to supply 1,473MW to Thailand and 100MW to Laos. Electricity generated over and above this amount will be used to power the plant.
The plant will consume 14.3 tonnes of lignite to produce electricity each year, from a total of 577.4 million tonnes.