Loan for Hydro Power Plant Project in Lao People's Democratic Republic (Lao PDR):
Supporting Hydro Power Plant Business with First Loan to the Government of Lao PDR

• Region: Asia
• Infrastructures
• Environment
• Overseas Investment Loans

1. The Japan Bank for International Cooperation (JBIC; Governor: Hiroshi Watanabe) signed on September 3 a loan agreement totaling up to USD34.5 million with the Government of Lao PDR to enable the government to invest in Nam Ngiep 1 Power Company Limited (NNP1) through Lao Holding State Enterprise (LHSE), a state enterprise owned by the Government of Lao PDR. The Nam Ngiep 1  Hydro Power Plant Project will be implemented by NNP1, a Laotian company, in which The Kansai Electric Power Co., Inc., EGAT International Company Limited, a subsidiary of the Electricity Generating Authority of Thailand (EGAT), and LHSE have equity stakes. The loan is cofinanced with financial institutions including private one, with the total cofinancing amount reaching USD103.5 million.
    
2. In this Project, NNP1 will build, own, and operate a dam-type hydro power plant with the total capacity of 290 MW on the Nam Ngiep River in Bolikhamxay Province, Lao PDR, under the concession agreement between NNP1 and the Government of Lao PDR. Most of electricity produced is going to be sold to EGAT and also some to Electricite du Laos, a Laotian state-owned corporation, for 27 years.^*1This is a cross border project within the ASEAN region^*2 where the economic growth is remarkable.
    
3. The loan supports financially the participation of Japanese companies in overseas infrastructure projects and will contribute to maintaining and strengthening the international competitiveness of Japanese industries, as well as contributing to the reduction of CO2 emissions through the promotion of a renewable energy sourse, the effective utilization of the abundant water resources of Lao PDR.
    
4. As Japan's policy-based financial institution, JBIC will continue to support overseas deployment of infrastructure business of Japanese companies and contribute to maintaining and strengthening the international competitiveness of Japanese industries, by drawing on its various financial facilities and schemes for structuring projects, and performing its risk-assuming function.

Note

1. *1 The governments of Lao PDR and Thailand signed a memorandum of understanding (MOU) on the comprehensive power export.
2. *2 JBIC has separately signed a loan agreement in project financing for this project. See Press Release on August 19, 2014.