"The construction of the project is now on the track to meet some of the key expectation needs including the date for filling the reservoir within 2008 and the date of beginning of commercial operation on December 2009," said Ian C. Porter, World Bank Country Director for South East Asia.

[Hear part of Ian C. Porter's press conference]

The bank Friday released the latest semi-annual update on the implementation status of the project, prepared jointly with the Asian Development Bank.

The update reports overall satisfactory progress since the last update was issued in March this year, Porter told a press brief in Bangkok which was conducted via teleconference also to Vientiane.

The World Bank sponsored construction of the $ 1.4 billion hydropower project in Nakai Plateau in central region of Laos to general incomes for one of the world least developed country.

Most of electricity produced by 1,070 megawatt hydropower dam would be exported to Thailand to generate foreign currency for poverty reduction in the land-locked country.

The project has a long history before materialisation due strong opposition from conservationists as the dam widely affected people and environment in the Nakai Plateua and another river basin nearby. Some 6,200 people in 1,200 households in the plateau were affected by the reservoir.

A total of 597 households have been removed to new resettlement areas few weeks ago, said Patchamuthu Illangovan, Country Manager for Lao. The project company intended to finish the remaining 600 households by June next year, he said. All affected population agreed to remove to new place on voluntary basis and most of them preferred to live near their previous place, he added.

Supalak Ganjanakhundee

The Nation