The deal stipulates that the companies will build three dams and a hydropower plant across the Mekong River in the southern plateau of Bolaven by 2018.
The Xe-Namnoy plant will have an estimated capacity of 410MW and will be owned and managed by Korean Western Power until 2045.
Ownership of the plant will then be transferred over to the Laotian authorities.
Electricity generated at the plant will be predominantly sold to Thailand with Laos expected to earn an estimated $30m per annum in taxes and other fees.
