China Eximbank pledges loan for 1320MW Pak Lay Hydropower Project

On June 11, 2007, Sinohydro signed a Memorandum of Understanding (MoU) with the Government of Lao PDR regarding the 1320MW Pak Lay Hydropower Project. This project involves the construction of a dam that is 630 meters long, 35 meters high, with a 108 sq km area. 5,010 people would need to be resettled as a result of the dam, although there is a proposal under consideration to reduce these resettlement impacts. There are also concerns that the dam along the Mekong river would seriously adversely affect the environment as the Mekong river is the site of a major inland fishery. As of 2009, the project was undergoing feasibility studies. Then, on August 25, 2017 a feasibility study report was approved by the Lao Government. Construction is expected to start in 2022 and the commercial operations are expected to begin in 2029. China Eximbank has reported expressed interest in financing this project. However, However, AidData has not identified any evidence that a loan agreement with China Eximbank was ever finalized.

Additional details

This project is also known as the Pak Lay BOT Project. The Chinese project title is 老挝芭莱水电站项目. In the Overseas Development Finance Dataset that Boston University’s Global Development Policy Center published in December 2020, it identifies this project as being supported by a $90 million China Eximbank loan commitment.

Number of official sources

8

Number of unofficial sources

18