2020 Volume 76 Issue 1 Pages 26-42
Recently hydropower developments invested by Independent Power Producers frequently face to several risks, which deteriorate the economy of projects and sometimes bankrupt projects, especially when worse topographic and geological conditions and resettlement issues come out. The developer usually prefers to select EPC (Engineering Procurement, and Construction) contract to pass through these risks. In the case of project having natural risks, EPC contract tends to increase the total project cost and make project uncompetitive. In the Nam Ngiep 1 Hydropower project (NNP1) in Laos, the developer has intentionally selected a different type of construction contract from EPC contract and tried to directly manage risks referring to practice of total more than 150 hydropower projects in domestic and overseas. This paper present the practice of NNP1 and proposes practical risk management for hydropower development in Southeast Asia.
