The signing ceremony took place on May 25 at the Ministry of Foreign Affairs between the Deputy Foreign Minister of Laos, Phongsavath Boupa, and the Norwegian Ambassador to Laos, Kjell Storløkken whose residence is in Hanoi, Vietnam. The ceremony was also attended by senior officials from the foreign ministry and the Norwegian Embassy.
Grant aid from the Norwegian government will enable the provision of experts from Norconsult to monitor and control the project, including construction of a 7km tunnel, a 115kw high voltage electricity grid from the dam to Pakxong district, and the checking of equipment installation and technical systems for safety of operation. Norway has continued to provide grant aid to the Lao PDR, especially for dam construction and electricity grid installation, which boosts the economy and upgrades the living standards of Lao people as a whole.
Xeset 2 hydropower plant is located in Lau-ngam district, Saravan province. The Lao government borrowed about 80 percent of the total cost of building the dam from the Exim Bank of China and the rest came from Electricite du Laos, with a total cost of US$135.5 million. A Chinese company won the bid to construct the hydropower plant.
