Nam Theun 2 Power Company
| Company type | Private |
|---|---|
| Industry | Hydropower, Energy |
| Predecessor | Nam Theun Electricity Consortium (NTEC) |
| Founded | 2002 in Vientiane, Laos |
| Headquarters | Vientiane , Laos |
Area served | Laos, Thailand |
| Products | Electricity generation (1080 MW) |
| Owner | EDF Nam Theun Holding (40%), Electricity Generating Public Company Limited (35%), Lao Holding State Enterprise (25%) |
Nam Theun 2 Power Company Limited (NTPC) was created to develop and operate the Nam Theun 2 Hydropower Project located in Khammouane Province, Laos. Based in Vientiane, NTPC oversees the generation of 1080 MW, which is supplied to the Lao national electricity grid and also exported to Thailand.
History
The hydropower capabilities within the Nakai Basin were first recognized during the 1970s. After comprehensive feasibility assessments, an agreement was reached in 1993 between the Thai and Lao governments to export 1,500 MW of electricity to Thailand. In 1995, the Nam Theun Electricity Consortium (NTEC), now known as NTPC, requested support from the World Bank to mitigate project risks. Although progress was hindered by the 1997 Asian financial crisis, NTPC was officially formed by 2002, and a Concession Agreement was signed with Laos. Construction commenced in 2005 following the completion of resettlement plans, environmental safeguards, and financial closure, culminating in project completion in 2010.
NTPC originated from the Nam Theun Electricity Consortium after French company Electricite du France joined and took on operational leadership responsibilities.
Environmental and Social Responsibility
NTPC’s objectives extend beyond electricity production to promoting sustainable development within Laos. The company facilitated the resettlement of 16 villages in the Nakai district, delivering new infrastructure such as roads, potable water systems, agricultural resources, educational institutions, and healthcare facilities:
- 1,330 homes equipped with utilities
- 270 kilometers of all-weather roads
- 104 community structures
- 330 water pumps installed
- 17 primary schools and 16 nursery schools established
- 2 health centers plus an upgraded district hospital
These initiatives have led to increased school enrollment rates (94% at primary level, 31% at secondary) and boosted adult literacy to 86%, surpassing national averages. Health indicators improved as well, with child mortality declining to 50 per 1,000 live births. Survey data reveals that 98% of residents report an improved standard of living since project commencement.
Resettlement efforts are governed by a two-stage action plan over the concession period (2010–2035): initially, a Resettlement Implemented Phase (RIP) concluded in December 2017, followed by a Medium-Term Development Plan (MTDP). These programs were developed collaboratively by the Lao government, NTPC, and international organizations such as the World Bank and Asian Development Bank. They emphasize sustainable livelihood strategies including fisheries enhancement, forest resource management, off-farm income generation, agricultural and livestock development, gender equity, assistance for vulnerable groups, and active engagement of ethnic minorities.
Among MTDP projects is the Nakai Plateau Livestock Agriculture, Livestock, and Fisheries initiative (NP-LAF), which supports local farming and fishing activities aimed at ensuring long-term income sustainability.
NTPC complies with environmental safeguard policies set forth by the World Bank and Asian Development Bank by creating designated ‘eco-zones’ that separate human settlements from protected areas like the Nakai-Nam Theun National Park, which hosts a rich variety of plant and animal species. The company also contributes to preserving endangered flora such as the Chinese swamp cypress (Glyptostrobus pensilis), native to this area.
Within the Nam Theun 2 Reservoir area, NTPC continuously monitors water quality, greenhouse gas emissions, and aquatic ecosystems through internal expertise to maintain environmental integrity alongside power production.
Ownership and Financial Structure
The ownership of the Nam Theun 2 Project is allocated as follows:
- EDF Nam Theun Holding (EDF-NTH) – 40%
- This entity is a subsidiary of EDF S.A., a prominent integrated European energy corporation engaged in power generation, transmission, distribution, and energy trading.
- Electricity Generating Public Company Limited (EGCO) – 35%
- Recognized as Thailand’s inaugural independent power producer, EGCO supplies capacity to EGAT under long-term power purchase agreements.
- Lao Holding State Enterprise (LHSE) – 25%
- Established in 2005, LHSE is a government-owned organization responsible for managing the Lao Government’s equity in NT2.
Equity contributions from partners correspond to their ownership percentages. The total equity investment reaches $350 million USD, accounting for 28% of the overall $1.45 billion USD project funding. Within this equity segment, 60% originates from public sector investors through LHSE and EDF-NTH.
Development and concession agreements were executed between the Lao Government and the Nam Theun Electricity Consortium and NTPC respectively, defining a build-operate-transfer framework. Complete operational control will transfer to the Lao government in 2035, marking 25 years after the start of operations. The government's $87.5 million USD equity stake is supported by international grants and loan arrangements.
Economic impact
From 2010 through 2016, NT2 contributed $153 million in revenue to the government, primarily allocated toward poverty alleviation and environmental stewardship. A 2019 World Bank report highlighted that 39% of these funds were directed to education and 14% to healthcare—the two largest funded sectors—while remaining revenues supported road development and rural electrification initiatives.
The project facilitated the resettlement of 6,300 families, integrating them into local economic sectors such as fisheries, agriculture, forestry, and small-scale businesses. These initiatives substantially boosted household incomes: 97% of resettled families experienced income doubling, and savings rates increased dramatically from 21% in 2006 to 99.6%.
Recent Achievements
On September 11, 2024, Nam Theun 2 Power Company was honored with the 5th ASEAN Occupational Safety and Health Network (OSHNET) Award held in Singapore, coinciding with the 11th ASEAN OSHNET Conference. Endorsed by Laos' Ministry of Labor and Social Welfare, the company earned recognition for maintaining a “strong safety culture and exemplary performance.”