ICBC agrees in principle to provide loan for EDL-Gen Energy Complex Plaza Project

ICBC agrees in principle to provide loan for EDL-Gen Energy Complex Plaza Project On March 22, 2019, EDL-Generation Public Company (EDL-Gen) — a Lao state-owned electricity company — signed a shareholders’ agreement with AVIC-INTL Project Engineering Company and Guizhou Transportation Planning Survey & Design Academe Co., Ltd. (GSDC) for the development of the EDL-Gen Energy Complex Plaza Project.

ICBC attended the signing ceremony.

Then, in May 2019, EDL-GENRECO Ltd. was legally incorporated as a special purpose vehicle and joint venture of EDL-Gen (80% ownership stake), AVIC-INTL Project Engineering Company (10% ownership stake), and GSDC (10% ownership stake).

The purpose of the EDL-Gen Energy Complex Plaza Project is to construct a building for EDL-Gen in Sibounheuang Village, Chanthabouly District, and Vientiane Capital.

The building will consist of 16 floors, which is divided into offices covering 12 floors, department stores covering 3 floors, convention halls covering 1 floor, and a two-and-a-half storey underground car park with a capacity approximately of 1,300 parking spaces. The total estimated cost of the project is $75.19 million.

The results of the project's feasibility studies suggest that the project’s internal rate of return is 13.62%. The project was originally expected to take 2-years to implement. As of July 2020, the project’s design was complete and a project contractor had been selected.

However, a request for a construction permit from Vientiane Capital’s Department of Public Works and Transport was pending, and approval from ICBC for a project finance loan was also pending.