China’s Huaneng Group and Thailand’s GMS Co will jointly build and operate two power stations on the Lancang-Mekong River in the southern Chinese province of Yunnan. The project is expected to cost 9 billion yuan (US$1=8.27 yuan).

Huaneng will hold a 75% the stake in the venture to build the Jinghong and Nuozhadu power stations on the Lancang River, which connects China by water to Southeast Asia, reported the Xinhua News Agency.

The Nuozhadu station, with a designed installed capacity of 5.85 million kilowatts, will be the fifth of eight power stations planned along the Lancang River in the province. The sixth will be located in the northern suburbs of Jinghong in Yunnan Province with an installed capacity of 1.5 million kilowatts.

Kou Wei, Huaneng’s general manager, told Xinhua News Agency that work on Jinghong will start this year while Nuozhadu is scheduled to begin next year.

The two stations will deliver electricity to energy-short Guangdong Province and to Thailand.

Originating in the Qinghai-Tibet Plateau in western China, the Lancang-Mekong River is called Lancang in the Chinese territory and runs through Myanmar, Laos, Thailand, Cambodia and Vietnam before entering the South China Sea. It is the only river in Asia that flows through six countries.

The 1,240-km section of Lancang River in Yunnan Province has exploitable water sources of 22.59 million kw. The total installed capacity of the eight planned stations is expected to reach 16.05 million kw.

Currently, the province has power stations at Manwan and Dachaoshan, with construction underway on another at Xiaowan.