Completed Mixed AidData Chinese Aid

CWE provides $50.4 million supplier’s credit for Phase 1 of 2x20 MW Nam Mang 3 Hydropower Station Project (Linked to Record ID#63233)

$50.4M USD

Funder	Export-Import Bank of China (China Eximbank)
Recipient Organization	China International Water and Electrical Corporation (CWE)
Country	Lao People's Democratic Republic
Start Date	Jan 01, 2002
End Date	Sep 22, 2031
Duration	10,856 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`63225`

Grant Description

CWE provides $50.4 million supplier’s credit for Phase 1 of 2x20 MW Nam Mang 3 Hydropower Station Project In 2002, China International Water & Electric Corporation (CWE) and the Government of Laos signed a supplier’s credit agreement for Phase 1 of the 2x20 MW Nam Mang 3 Hydropower Station Project.

The estimated face value of the supplier’s credit is $50.4 million.

📋 Loan / Grant Terms

💰 Loan Amountwere as follows: 2% interest rate

📅 Maturity20 years

⏳ Grace Period8 years

💹 Interest Rate2%

The borrower was to use the proceeds from the supplier’s credit to finance 80% of the $63 million cost of a commercial (EPC) contract that CWE and Électricité du Laos (EDL) signed on November 24, 2001.

In order to finance its supplier’s credit agreement with the Government of Laos, CWE secured an export seller’s credit from China Eximbank.

The purpose of the project was to construct a 40MW hydropower station (with two 20MW power generators) on the Nam Gnong River with annual power generation capacity of 133 million kWh.

The station is located at Phou Khao Khouay Mountain, 60 km north of Vientiane Capital City and 15 km southwest of Nam Leuk Hydropower Plant. CWE was the EPC contractor responsible for implementation. The project officially commenced on January 11, 2002. On June 1, 2004, the reservoir began to store water.

On October 1, 2004, the first power generation unit began generating electricity. On January 18, 2005, a project completion handover ceremony was held. China Eximbank also financed Phase 2 of the project (see Record ID#63233).

📋 Staff Comments

This project is also known as 40MW(2x20 MW) Nam Mang 3 Hydropower Station Project.
The Chinese project title is 南梦3水电站项目 or 老挝南梦3水电站附属输变电站修建和输变电线路架设项目.
The Lao project title is ເຂື່ອນໄຟຟ້າ ນໍ້າມັງ 3.
According to the IMF, the Lao Government successfully negotiated more concessional borrowing terms with China Eximbank by September 2002. However, it is unclear if the borrowing terms captured by AidData (2% interest rate, a 20-year maturity period, and an 8-year grace period) reflect the borrowing terms from before or after the negotiation. This issue merits further investigation.

📚 Sources & References

China to Help Laos Become E-Government
Lao People's Democratic Republic Technical Assistance for Capacity Building in the Hydropower and Mining Sectors
老挝南梦3水电站工程项目
China in Laos: Is There Cause For Worry?
Existing and Planned Lao Hydropower Projects
Perspective from the Mekong Region: New Financiers and Familiar Problems
Export Finance Activities by the Chinese Government
Lao People's Democratic Republic— Letter of Intent
Memorandum on Economic and Financial Policies, and Technical Memorandum on Program Monitoring
NAM MANG 3 HYDROPOWER PLANT
中国进出口银行副行长一行视察老挝南梦3水电站
Lao People's Democratic Republic
南梦3水电站
The Future Impacts on Downstream Communities: A Case Study of the Multipurpose Nam Mang 3 Hydropower Project in Lao PDR
To the Lao People's Democratic Republic in Support of the Greater Mekong Subregion Power Trade Projects
BU_PITCH_ENGLISH_2019-clean5.xlsx
在战略转型中实现跨越发展
中国水利电力对外公司老挝南梦3水电开发项目首台机组发电成功
老挝南梦3项目隆重举行竣工和移交仪式
China's Global Energy Finance
The Study on Master Plan of Transmission Line and Substation System in Laos Final Report, 2015 EDL Bond Prospectus 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

China International Water and Electrical Corporation (CWE)

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