Nam Ou river cascade dams

[3] The Lao government and Sinohydro, a Chinese based project contractor, signed a $2.733 billion deal of investment in April 2011[4] with the aim of financing the construction of a series of hydropower dams on the Nam Ou river.

[2] The Nam Ou cascade dams mark the first time that a Chinese company has held development rights of a foreign project.

[2] The project also fits under Lao government objectives to become the “Battery of Southeast Asia”, with electricity as a commodity serving to boost the national economy.

Power China Resources’ (Sinohydro's parent company) share of international hydropower development market comprised half of the entire industry.

This model is also being incorporated in projects involving Chinese construction firms in Nepal, Macedonia, Cambodia, Burma, and Pakistan.

[2] PowerChina also attempts to collaborate with local construction and development companies to boost relevant Laos industries.

[2] The Xe Pian-Xe Namnoy hydropower complex collapsed on July 23, 2018 causing damage to homes and agriculture 80 kilometers from the site and killing at least 71 people.

The project had South Korean, Thai, American, and Lao stakeholders including SK E&C and Korea Western Power.

This response included sending the Lao Ministry of Energy and Mines a message of condolence and two subsidiaries of PowerChina (Chengdu Engineering Corporation Ltd. and Kunming Engineering Corporation Ltd.) joined the World Bank and Lao Ministry of Energy and Mines in the subsequent safety investigations of the site.

The Lao government also halted all hydropower project construction and planning in order to have a national review of development strategy.

[12] PowerChina offered the Lao government technical assistance and support as well as engaged in rescue work in the affected areas.

[11][independent source needed] The entire series of dams in the project will spread across 80% of the Nam Ou river.

[14] The environmental impact of the project on the Phou Den Din National Protected Area near Nam Ou 6 will most likely be detrimental.

[13] There have been attempts to mitigate the impact of these types of hydropower projects by companies by including features in the dam that are meant to allow for the safe passage of fish.

Some scholars are skeptical of the viability of these solutions, but even if successful, the dams still cause stagnant waters that could destroy fish breeding grounds.

Large scale hydropower projects have also been criticized by academics like Richard Frankel for creating high greenhouse gas emissions and underwhelming economic returns.