Active Development AidData Chinese Aid

ICBC provides $100 million loan for 45MW Nam Phoun Hydropower Project

$100M USD

Funder	Industrial and Commercial Bank of China (ICBC)
Recipient Organization	Électricité du Laos (EDL)
Country	Lao People's Democratic Republic
Start Date	Mar 22, 2018
End Date	Mar 03, 2028
Duration	3,634 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`65225`

Grant Description

ICBC provides $100 million loan for 45MW Nam Phoun Hydropower Project In June 2015, SOK Corporation and the Government of Laos (GOL) began negotiations on a Project Development Agreement (PDA) for the 45 MW Nam Phoun Hydropower Project. Negotiations on the PDA were completed in March 2016.

Then, in May 2016, Nam Phoun Power Company Limited (NPPC) — a special purpose vehicle (SPV) and joint venture between EDL-Generation Company Limited (EDL-Gen) [51% equity stake] and SOK Corporation [49% equity stake] — was created to support the implementation of the 45 MW Nam Phoun Hydropower Project.

Six months later, on November 18, 2016, Nam Phoun Power Company Limited (NPPC) and Power China Chengdu Engineering Corporation Limited signed a commercial (EPC) contract worth $99,998,918 for the 45 MW Nam Phoun Hydropower Project.

Then, on March 22, 2018, the Industrial and Commercial Bank of China (ICBC) and Électricité du Laos (EDL) — Laos' state-owned power company — signed a $100 million loan agreement for the 45MW Nam Phoun Hydropower Project.

The borrower was expected to use the proceeds of the loan to finance the $99,998,918 commercial contract between NPPC and Power China Chengdu Engineering Corporation Limited. Then, on November 11, 2018, a concession agreement was signed for the 45MW Nam Phoun Hydropower Project.

The purpose of the $128 million project is to construct a 45 MW hydroelectric power plant in Paklai (Paklay) District and Xayabuly Province.

More specifically, it involves the construction of a head-race tunnel, a powerhouse and a substation, and related infrastructure facilities; the installation of turbines, generators, and transformers; and the laying of transmission lines. Upon completion, the plant is expected to generate annual energy output of 190 million KWh.

Power China Chengdu Engineering Corporation Ltd was the contractor responsible for implementation. Pre-construction activities, including a feasibility study in May 2018, did commence. However, it is unclear whether or when construction commenced. The project was scheduled for completion in 2024.

📋 Staff Comments

This project is also known as the 45MW Nam Phoun Hydropower Station and the 45 MW Nanpu Hydropower Station Project. The Chinese project title is 南浦水电工程 or 南普水电站项目. The Laotian project title is ເຂື່ອນໄຟຟ້ານ້ຳພູນ.
AidData has identified the face value of the loan as $100 million based on this source (https://www.dropbox.com/s/nklella57vg868u/Banking%20and%20finance%20in%20Hong%20Kong%20_%20Law%20firm%20and%20lawyer%20rankings%20from%20The%20Legal%20500%20Asia%20Pacific%20guide.pdf?dl=0).
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. EDL-Generation Company Limited (EDL-Gen) was incorporated in 2010 and operates as a subsidiary of EDL.
It is unclear why EDL is identified as the borrower rather than Nam Phoun Power Company Limited (NPPC). One possible explanation is that EDL on-lent the proceeds of the loan to Nam Phoun Power Company Limited (NPPC). However, this issue requires further investigation.
Some sources identify a 60MW Nam Phoun Hydropower Project rather than a 45MW Nam Phoun Hydropower Project. This issue merits further investigation.
The total cost of this independent power project (IPP) is $128 million and a $100 million loan was issued by ICBC. However, it is unclear how the remaining $28 million was financed. The project sponsors (investors) likely made $28 million of equity contributions. However, this issue requires further investigation.
NPPC is also known as Nam Phoun Power Co., Ltd.

📚 Sources & References

陈波出席老挝南普水电站项目贷款协议签署仪式
工行四川省分行：践行大行担当给力实体经济
中国工商银行与老挝国家电力公司成功签署南普水电站项目贷款协议
老挝南普水电站项目举行总承包合同签字仪式
EPC contract of Nam Phoun HPP Signing Ceremony between Nam Phoun Power Company Limited (NPPC) and Power China Chengdu Engineering Corporation Limited
NPPC – Nam Phoun Hydro Power Plant 60 MW – Xayaboury
EDL-Generation Public Company The First Semi-Annual Report
Invitation to the Annual General Shareholders’ Meeting for the Year 2019. - Pursuant to the Notice no. 0814/EDL-Gen dated 05/05/2020.
Banking and finance in Hong Kong
Law firm and lawyer rankings from The Legal 500 Asia Pacific guide
Power Grid Improvement Project (Record ID: P149599) Draft Environmental and Social Management Plan (ESMP)
The signing ceremony on the concession agreement
Xayaburi Province approves private study on feasibility of Nam Phun Dam
Nam Phoun Dams Hydropower Info by Hobo Maps 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.