Xekong's Kaleum district makes way for hydro plant
Construction of Xekong province's new Kaleum district got under way last Tuesday, with an official groundbreaking ceremony held at the site 31km from the existing district.
Kaleum district is being relocated because of the planned Xekong 4 hydropower plant, which will encroach into part of the district, and also because of frequent flooding in the area, according to a press release from Region Oil on Friday. Region Oil is the Russian company that will build the hydropower plant.
The current district offices are also inconveniently located for development and business activities, as well as in terms of attracting tourists.
The groundbreaking ceremony, held near Vak village, was attended by Xekong province Governor Mr Khampheuy Bouddavieng and representatives of the local Phonesak Group and Region Oil.
It is estimated it will cost about 930.5 billion kip (US$116.3 million) to build the hydropower plant on a 1,500 hectare site over a period of about three years.
Financing will be provided by the Lao government, including about US$36 million to be paid by Region Oil for the cost of resettling and relocating families who will lose their homes when the Xekong 4 dam is built.
Under an agreement with the government, Phonesak Construction Company will build infrastructure, including roads and public offices, to facilitate the relocation of the district's administrative offices.
The new offices will be linked by a new road to the existing offices. Roads will also be built within the new development.
Other project components include construction of 38 public offices and the installation of electricity, water supply and street lights; UXO clearance; building of residential areas; and the provision of land for people to earn a living.
Deputy Head of Xekong provincial Administrative Office, Mr Soulaphon Meunviseth, said authorities are building a road from Xekong provincial capital through Kaleum district to the Vietnamese border, hoping to motivate people to grow commercial crops and to attract investment to the district.
The people of Kaleum district mainly rely on farming and animal breeding for their livelihood, so local authorities need to identify the crops that are best suited to this area and can be grown for market sale. Kaleum is one of the 45 poorest districts in Laos and 95 percent of its territory is mountainous. It is located some 74km from Xekong provincial capital and has a population of nearly 15,000 people, with almost half of the district's 2,488 families living under the poverty line.
Region Oil is working on the formation of a project company in Laos to build the Xekong 4, Xekong 5 and Nam Kong 1 hydropower plants on the Xekong and Kong rivers in Xekong and Attapeu provinces.
The projects will require investment of about 16 trillion kip (US$2 billion) and will have an installed capacity of about 1,200 megawatts both for local supply and for export.
