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Chinese Company Signs Deal for Power Project in Laos
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A deal was signed Sunday between China International Water & Electric Corp. (CWE) and the Lao government to build a hydropower station near Vientiane, capital of Laos.

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

"With an investment of US$142 million the deal marks the first hydropower project using the 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 a contract value and investment of nearly US$178 million.

"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 looking abroad," said Lu.

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

(Xinhua News Agency November 20, 2006)

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