Top Biz News

Chinese company signs deal in Laos

(Xinhua)
Updated: 2006-11-20 09:46

China International Water & Electric Corp. (CWE) signed a deal with the Lao government on Sunday to build a hydropower station near Vientiane, capital of Laos.

The hydropower station would have an installed generating capacity of 100,000 kilowatts, and be operated under the model of BOT (Build-Operate-Transfer), said Lu Guojun, general manger of CWE in Beijing on Sunday.

"With an investment of 142 million U.S. dollars, the deal marks the first hydropower project under BOT model by Chinese companies in Laos, he said.

CWE has participated in three hydropower projects in Laos since it entered the country in 1996, involving the contract value and investment of nearly 178 million U.S. dollars.

"As China and the Association of Southeast Asian Nations (ASEAN) push for the establishment of a free trade area, ASEAN countries have become popular destinations for Chinese companies eyeing abroad," said Lu.

According to the deal, the concession period of the project will be 30 years, including the estimated four and a half years for project construction. Then CWE will transfer the project to the Lao government.