JBIC concluded a project finance loan agreement with Laos-based Nam Ngiep 1 Power Company Limited (NNP1), in which the Kansai Electric Power Co., Inc. (KEPCO), a subsidiary of the Electricity Generating Authority of Thailand (EGAT), and a Laotian state-owned company have equity stakes. This is JBIC's first project financing loan for Laos and will be used for the Nam Ngiep 1 Hydropower Project. JBIC is also providing the government of the Lao Peoples Democratic Republic with funds to invest in NNP1 through a Laotian state-owned company.
This is a cross-border project in two member countries of ASEAN, which is experiencing dramatic economic growth, and involves building, owning, and operating a dam-type hydropower plant on the Nam Ngiep River in Bolikhamsai Province. The power generated by the plant will be sold to both EGAT and Electricite du Laos for 27 years. The project also contributes to a reduction in CO2 emissions by promoting the effective use of Laos's abundant water resources, a source of renewable energy.