Completed Development AidData Chinese Aid

Yunnan Provincial Energy Investment Group provides loan for 70MW Xelanong 1 Hydroelectric Power Plant Construction Project

$114.11M USD

Funder	Yunnan Provincial Energy Investment Group
Recipient Organization	Xelanong 1 Hydropower Company
Country	Lao People's Democratic Republic
Start Date	Jan 01, 2020
End Date	Oct 12, 2030
Duration	3,937 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`105704`

Grant Description

Yunnan Provincial Energy Investment Group provides loan for 70MW Xelanong 1 Hydroelectric Power Plant Construction Project In February 2017, Yunnan Provincial Energy Investment Group Co., Ltd. (香港雲能國際投資有限公司) and Électricité du Laos (EDL) signed a power purchase agreement (PPA) for the 70MW Xelanong 1 Hydroelectric Power Plant Construction Project.

Then, in 2020, Yunnan Provincial Energy Investment Group Co., Ltd. issued a loan to Xelanong 1 Hydropower Company — a special purpose vehicle (SPV) and joint venture of Yunnan Provincial Energy Investment Group Co., Ltd. (YEIG) [70% equity stake], Daosavanh Investment & Construction DICG Group Co., Ltd. [15% equity stake], EDL [10% equity stake], and China's Sun Paper Holdings Laos Co., Ltd. [5% equity stake] — for the 70MW Xelanong 1 Hydroelectric Power Plant Construction Project.

📋 Loan / Grant Terms

💰 Loan Amountare unknown

The purpose of the $163 million project was to construct a 70MW hydroelectric power plant — with two 35MW vertical-axis Francis turbine-generator sets — in Savannakhet Province between Phin district and Nong district in the south of Lao PDR (exact locational coordinates: 16.355732, 106.237564). The project covers an area of almost 2,500 hectares in the Dong Phu Vieng National Protected Area.

Sinohydro Bureau 10 Co., Ltd. was the EPC contractor responsible for project implementation.

Power China Chengdu Engineering Corporation Limited was responsible for the design and supply of electromechanical equipment.

Construction commenced in 2017. 88 families were relocated in June 2019 to make way for the construction of the power plant.

However, those who were relocated reportedly did not yet to receive any kind of compensation from the project company (SPV), despite being promised 40 million kip (approximately $320) for each hectare (2.47 acres) of land that they lost to the project. The tract that the relocated villagers were given to grow food on was reportedly unsuitable for rice and other crops.

The new village that was built for the families also remained unfinished as of February 2020, with some houses having no walls, running water, or toilets. The new village also lacked a school or health center. The first power generation unit was connected to the grid on July 22, 2020. The second power generation unit was connected to the grid on August 7, 2020.

📋 Staff Comments

This project is also known as the Laos Xelanong Grade One Hydropower Station Project, the Selanong 1 Hydropower Station Project, Xe La Nong 1 Hydropower Station Project, and the Xe Lanong 1 Hydropower Station Project. The Chinese project title is 色拉龙一级水电站 or 老撾沙拉龍一級水電站 or 老挝色拉龙一级水电项目 or 老挝色拉龙水电一级开发项目 or 老撾色拉龍一級水電站項目. The Lao project title is ໂຄງການ ເຂື່ອນໄຟຟ້າ ເຊລະນອງ. The Vietnamese project title ix Dự án thủy điện Xelanong 1.
The face value of the loan from Yunnan Provincial Energy Investment Group Co., Ltd. is unknown. For the time being, AidData assumes that the $163 million project was financed according to a debt-to-equity ratio of 70:30, which implies that the loan commitment was equivalent to $114.11 million. This issue warrants further investigation.
Yunnan Provincial Energy Investment Group Co., Ltd is a provincial state-owned enterprise (SOE) based in Yunnan Province, China. YEIG is principally engaged in the investment and management of natural gas, hydropower, power grid, and coal energy businesses worldwide. YEIG is more than 90% indirectly owned by the Yunnan SASAC, with 83.1% held through Yunnan Provincial Investment Holdings Group Co. Ltd. (YIG).
Rajah & Tann -- a Singaporean law firm -- advised on this project finance transaction in 2020 (https://www.rajahtannasia.com/accolades/2020-accolades/iflr-1000).
Électricité du Laos (EDL) is the state corporation of Laos that owns and operates the country's electricity generation, electricity transmission and electricity distribution assets. The company also manages the import and export of electricity from the national electricity grid of the country.

📚 Sources & References

PRELIMINARY OFFERING CIRCULAR DATED 17 NOVEMBER 2018
Xe Lanong 1, 2 & 3 Dams Hydropower Info
Part 2 Risk Factors related to the Issuer
老挝色拉龙一级水电站首台机组并网发电
色拉龙一级水电站工程, 1. Namche 1 Hydropower plant project
BRI WATCH ISSUE 0 - JUNE 2020
云南省投资控股集团有限公司 2023年度第六期超短期融资券募集说明书
Hydro power projects (operational, under construction, in planning) as point (Savannakhet)
AsiaLaw Profiles (2020)
Awards and Accolades 2020 IFLR-1000
老挝色拉龙一级水电站成功下闸蓄水
IFLR-1000 2020 Accolades
云南省能源投资集团有限公司 2023年面向专业投资者公开发行公司债券（第一期）募集说明书
云南能投境外项目老挝色拉龙一级水电站首台机组成功并网发电
水电十局老挝色拉龙一级水电站2号机组投产发电
Still no Compensation for 88 Families Relocated for Laos’ Xe La Nong 1 Dam
Power plant profile: Se Lanong 1
Laos Loan applications and disbursements are still being received and processed as the projects continue to evolve. Ongoing monitoring and evaluation are in place to ensure project continuity.

All Grantees

Xelanong 1 Hydropower Company

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