China Eximbank provides loan for Southern Provinces Transmission Development I Project

📋 Staff Comments

1. 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.
2. This project may be related to the 115kV Pakse-Khone Pha Pheng Transmission Line Project (captured via Record ID#64818).
3. According to the World Bank's Debtor Reporting System (DRS), the weighted average maturity of all official sector lending from Chinese creditors to government and government-guaranteed borrowing institutions in Laos was 15.2194-years in 2004. AidData estimates the maturity of the China Eximbank loan that supported the Southern Provinces Transmission Development I Project by using this figure. See https://www.dropbox.com/s/949n5rctiue6d7c/IDS_Average_grace_period_and_maturity_on_new_external_debt_commitments.xlsx?dl=0 4. According to the World Bank's Debtor Reporting System (DRS), the weighted average grace period of all official sector lending from Chinese creditors to government and government-guaranteed borrowing institutions in Laos was 8.3724-years in 2004. AidData estimates the grace period of the China Eximbank loan that supported the Southern Provinces Transmission Development I Project by using this figure. See https://www.dropbox.com/s/949n5rctiue6d7c/IDS_Average_grace_period_and_maturity_on_new_external_debt_commitments.xlsx?dl=0 5.. According to the World Bank's Debtor Reporting System (DRS), the weighted average interest rate of all official sector lending from Chinese creditors to government and government-guaranteed borrowing institutions in Laos was 2% in 2004. AidData estimates the interest rate of the China Eximbank loan that supported the Southern Provinces Transmission Development I Project by using this figure. See https://www.dropbox.com/s/ab8qt4n6jijcbhd/IDS_Average%20interest%20on%20new%20external%20debt%20commitments.xlsx?dl=06. To estimate the face value of the loan, AidData relies on the aggregate value ($181,940,666.70) of all official sector lending from Chinese creditors to government and government-guaranteed borrowing institutions in Laos in 2004, which the Government of Laos voluntarily disclosed to the World Bank's Debtor Reporting System (DRS). AidData relies on this figure because there are no other 2004 loan commitments in its dataset that are reportable to the World Bank under the DRS Reporting Directives. See https://www.dropbox.com/s/2sw4f7gluxa52fk/DRS%20Official%20Commitments%20from%20China%20Through%202021.xlsx?dl=0

📚 Sources & References

• PROJECT APPRAISAL DOCUMENT ON A PROPOSED IDA GRANT IN THE AMOUNT OF SDR 12.6 MILLION (US$20 MILLION EQUIVALENT)
• GEF PROJECT BRIEF ON A PROPOSED CREDIT IN THE AMOUNT OF USD 20 MILLION EQUIVALENT AND PROPOSED GRANT FROM THE GLOBAL ENVIRONMENT FACILITY TRUST FUND IN THE AMOUNT OF USD 3.75 MILLION
• To the Lao People's Democratic Republic in Support of the Greater Mekong Subregion Power Trade Projects
• 老挝南方农村电气化项目签署EPC商务合同
• Lao PDR Power to the People: Twenty Years of National Electrification
• 集团股份公司签署老挝南方农村电气化工程合同协议
• China Overseas Development Finance
• DRS Official Commitments from China Through 2021 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.