China's Sinohydro Corporation and state-owned Electricite Du Laos (EDL) have signed an agreement to construct two hydro-electric power (HEP) plants and a power transmission line, according to China Daily.

The US$ 559 million contract will see construction of the 130 MW Nam Kham 2 and 47 MW Nam Kham 3 hydro power plants.

Nam Kham 2 will be located 30 km southeast of Luang Prabang city on the Nam Kham river. It is expected to generate 556000 MW of electricity per year.

The Nam Kham 3 will be located 70 km north of Luang Prabang and is expected to generate 222 million kW of power per year.

A 230 kilovolt power transmission line from Xiengkhouang to Luang Prabang will also be constructed.

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