Completed Mixed AidData Chinese Aid

China Eximbank provides RMB 290 million concessional loan for Vang Vieng Cement Plant No. 2 Construction Project

¥290M RMB

Funder	Export-Import Bank of China (China Eximbank)
Recipient Organization	Lao Cement Public Company (LCC)
Country	Lao People's Democratic Republic
Start Date	Jan 01, 2000
End Date	Jun 29, 2029
Duration	10,772 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`33697`

Grant Description

China Eximbank provides RMB 290 million concessional loan for Vang Vieng Cement Plant No. 2 Construction Project In 1999, Lao Cement Public Company (LCC) was established as a joint venture between China Yunnan Corporation for International Technical and Economic Cooperation (CYC) and Lao State Agriculture Industry Development Corporation (DAI).

When LCC was established, CYC held a 60% ownership stake and DAI held a 40% ownership stake. In 1999, the China’s Ministry of Commerce also approved the Vang Vieng Cement Plant II Project.

Then, in 2000, the Export-Import Bank of China issued a RMB 290 million (approximately $36 million) concessional loan agreement for Vang Vieng Cement Plant No. 2 Construction Project. The loan carried an interest rate of 2.5%. The proceeds of the loan were to be used by the borrower to finance a commercial (EPC) contract with CYC.

The purpose of this project was to construct a cement plant — along Nongbone Road in the village of Heenkhunmark (also known as Nong Bone) within Vang Vieng district and Vientiane Province — with the capacity to produce 200,000 tons of cement per year. CYC was the EPC contractor responsible for implementation.

Construction began on March 3, 2000 and ended in July 2001. Cement production began in March 2002.

📋 Staff Comments

This project is also known as the Vang Vieng Cement Plant II Project and the Vang Vieng Cement Factory II Project. The Chinese project title is 万荣水泥二厂合资项目 or 万荣20万吨水泥厂. The Lao project title is ບໍລິສັດ ຊີມັງລາວ ຈຳກັດ.
The China Eximbank loan that supported this project is not included in the Overseas Development Finance Dataset that Boston University’s Global Development Policy Center published in December 2020. For the time being, AidData assumes that the borrower was the Government of Laos and it then on-lent the loan proceeds to LCC. However, this issue requires further investigation.

📚 Sources & References

CHINA HELPS LAOS IN ECONOMIC AND EDUCATIONAL DEVELOPMENT.
The Mineral Industry of Laos
Resource Mobilization and Dutch Disease Phenomena in the Lao PDR
中方在老签订第五个水泥厂投资批准协议
驻老挝大使布建国赴万荣水泥二厂调研
关于LCC
Assessment and Prospect of China-Laos Development Cooperation
PROSPECTUS LAO CEMENT PUBLIC COMPANY ('LCC')
Assessment and Prospect of China-Laos Development Cooperation
老挝：脱贫进行时
老挝万荣水泥厂：国际合作项目中的样板工程
老挝水泥生产现状
老挝工程承包市场浅析（二）
China's Foreign Economic Cooperation for CLMV: Contact Engineering in CLMV
Aiding Transparency: What We Can Learn About China ExIm Bank’s Concessional Loans
Macroeconomic Policy Support for Socio-Economic Development in the Lao PDR Phase 2 Main Report
China's Overseas Development Finance
The Increasing Presence of China in Laos Today: A Report on Fixed Point Observation of Local Newspapers from March 2007 to February 2009
About LCC
布建国大使赴万荣水泥二厂调研并出席万荣铁矿开采和还原铁项目开工仪式
中资公司参与工程承包简介 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

Lao Cement Public Company (LCC)

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