Vietnamese Minister of Construction visits Xekaman 3 Hydropower Project work site in Lao PDR

Vietnamese Minister of Construction Nguyen Hong Quan paid a working visit to Xekaman 3 Hydropower Work in the Lao PDR from April 4 to 6, 2009

Vietnamese Minister of Construction Nguyen Hong Quan paid a working visit, from April 4 to 6, 2009, to Xekaman 3 Hydropower Project Work, which has been invested by Viet-Lao Power Joint Stock Company (under Song Da Corporation) in Dakcheung district, Sekong province, Lao PDR. This is the first large scale hydropower project invested offshore by Vietnam under the form of Build-Operate-Transfer (BOT) with the installed capacity of 250 MW, total investment capital of 311 million USD, average output of nearly 1 billion kWh.

      As reported by Xekaman 3 Power Company Limited, the Project was started construction on April 05, 2006 and expected to generate power of the unit No.1 in early 2011. Up to now, the General Contractor has completed 100% operation road with the length of 5.4 km; 16.34/17.2 km of left bank road; 10.2/17 km of right bank road. The dam, chute spillway and scour pool have been building promptly and expected to complete in December 2009. Nearly 2,000 workers of Song Da Corporation were making every effort at the work site to ensure the power generation of the unit No.1 and completion of remaining work items. Song Da Corporation completed the auxiliary work items, camps served for life and work of personnel at the work site. In order to help the people living in Project area, the Investor built a new school and upgraded a hospital valued at 126,000 USD in Dakcheung district, Sekong province.

On behalf of construction units working at the work site, the representative of Song Da General Contractor reported to the Minister on the difficulties in the process of development of the offshore investment project. Due to the extensive area of the work site located in the middle of primeval forest, much rain (dry season lasts only 3-4 months/ year), difficult traffic road, complicated engineering geological conditions, so the construction work has met many difficulties. In addition, all materials, equipments and workforce as well as necessities served for the Project must be imported from Vietnam, whilst the import procedures of Laos side have many limitations. Some policies on foreign labour management of Laos are rather close. Appreciating the effort made by the personnel on the work site, Minister Nguyen Hong Quan recorded and commended the multi-sided development of Song Da Corporation when overcoming difficulties to organize construction in accordance with the project plan. The Minister affirmed that Xekaman 3 Hydropower Work would not only bring economic benefits when completed, but also have great significance in politics and special diplomatic relations between Vietnam and Laos. This is also the Vietnamese-invested project with the most capital foreign countries. With such specific difficulties of the offshore investment as clearance procedures at the border gate, skilled labour attraction mechanism, work quality control etc, the Investor need coordinate with the appropriate authorities to strictly comply with the regulations of the Lao PDR, at the same time, create favorable conditions to ensure the work progress and working quality at the Work site.

      The Minister also drew much attention of the construction units to work safety in construction because the Work is located far from the center the infrastructure at the project area is poor. The construction units should attach special importance to the material and spiritual conditions of the personnel working at the work site. Referring to the export duty of materials, salary mechanism for laborers working in a foreign country, the Minister requested the Investor and the construction units to abide by the regulations of the both Governments. As for wage level of Vietnamese laborers working in Laos, the Investor need to study and consider, taking the total investment capital into account, suitable wage level together with making policy, maintaining and developing human resources, training workers with professional skills. The Investor should work directly with the State Bureau for Construction Quality Inspection on the process of construction quality control and supervision on work site. The Ministry of Construction also would propose opinions to Lao diplomatic agency to facilitate the clearance procedures at border gate, labour management etc… suitable to the characteristics of the Project.

Minister Nguyen Hong Quan desired Song Da Corporation and the construction units on Xekaman 3 Hydropower Work to make more effort to confirm investment direction of Vietnam in foreign countries. This is the first Project invested in Laos, which will open opportunities to develop hydropower potentials in the neighboring country. In the future, more and more Vietnamese enterprises will have investment projects in Laos, thus, Xekaman 3 Hydropower Project needs to be completed as a model project for others.