Skip to content
AidData logo

Overview

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

Commitments (Constant USD, 2023)$83,038,111
Commitment Year•2000Country of Activity•Lao People's Democratic RepublicDirect Recipient Country of Incorporation•Lao People's Democratic RepublicSector•Industry, Mining, ConstructionFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jan 1, 2000
Start (actual)
Mar 3, 2000
End (actual)
Jul 1, 2001

Geospatial footprint

Map overview

Visualizes the AidData-provided feature geometry for this project.

Loading map…

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. More detailed locational information can be found at https://www.openstreetmap.org/way/240116887

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Ultimate beneficial owners

At least 25% host country ownershipAt least 25% Chinese ownership

Funding agencies

State-owned Policy Banks

  • Export-Import Bank of China (China Eximbank)

Receiving agencies

Joint Venture/Special Purpose Vehicles

  • Lao Cement Public Company (LCC)

Implementing agencies

State-owned companies

  • China Yunnan Corporation For International Techno-Economic Cooperation

Loan desecription

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

Interest rate (t₀)•2.5%Interest type•Fixed Interest Rate

Narrative

Full Description

Project narrative

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.

Staff comments

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.