China Eximbank provides RMB 290 million concessional loan for Vang Vieng Cement Plant No. 2 Construction Project

In 1999, Lao Cement Public Company (LCC) was established as a joint venture between China Yunnan Corporation for International Technical and Economic Cooperation (CYC) and Lao State Agriculture Industry Development Corporation (DAI). When LCC was established, CYC held a 60% ownership stake and DAI held a 40% ownership stake. In 1999, the China’s Ministry of Commerce also approved the Vang Vieng Cement Plant II Project. Then, in 2000, the Export-Import Bank of China issued a RMB 290 million (approximately $36 million) concessional loan agreement for Vang Vieng Cement Plant No. 2 Construction Project. The loan carried an interest rate of 2.5%. The proceeds of the loan were to be used by the borrower to finance a commercial (EPC) contract with CYC. The purpose of this project was to construct a cement plant — along Nongbone Road in the village of Heenkhunmark (also known as Nong Bone) within Vang Vieng district and Vientiane Province — with the capacity to produce 200,000 tons of cement per year. CYC was the EPC contractor responsible for implementation. Construction began on March 3, 2000 and ended in July 2001. Cement production began in March 2002.

Additional details

1. This project is also known as the Vang Vieng Cement Plant II Project and the Vang Vieng Cement Factory II Project. The Chinese project title is 万荣水泥二厂合资项目 or 万荣20万吨水泥厂. The Lao project title is ບໍລິສັດ ຊີມັງລາວ ຈຳກັດ. 2. 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. For the time being, AidData assumes that the borrower was the Government of Laos and it then on-lent the loan proceeds to LCC. However, this issue requires further investigation.

Number of official sources

9

Number of total sources

21