China Eximbank provides $212.5 million preferential buyer's credit for 104MW Nam Chiane 1 Hydropower Project

In 2014, China Eximbank and the Government of Laos signed a preferential buyer’s credit (PBC) agreement for the 104MW Nam Chiane 1 Hydropower Project. The proceeds of the PBC were to be used by the borrower to partially finance a $250 million commercial (EPC) contract that China Gezhouba Group Company Limited (CGGC) and Électricité du Laos (EDL) signed on April 15, 2012. The precise face value of the PBC is unknown. However, since China Eximbank PBCs typically finance 85% of the total cost of a commercial (EPC) contract, AidData assumes that the face value of the PBC was $212.5 million (85% of $250 million). The purpose of the project was to construct two 52MW hydropower stations on the Nam Chiane River — a left branch of the upstream Nam Ngiep River in Xiangkhouang Province. The project stretches from Keosed village in Khoun district, Xieng Khuang Province to Samkothong village in Thathom district, Xaysomboun Province. Contracted works included rock-fill dam panel, flushing sluice, access tunnels, power plant buildings, and switching plants. The total reservoir capacity reaches 14 million cubic meters, with the total installed capacity of 104MW (2*52MW), and the contract term lasts for 56 months. CGGC was the EPC contractor responsible for implementation. Construction began on July 1, 2013. A formal groundbreaking ceremony was held on May 3, 2014. As of June 2017, the project had achieved a 94% completion rate. The two 52MW power generation units put into operation on February 10, 2018. The power plant was commissioned on February 24, 2018. The originally anticipated project completion date was May 1, 2018. China Eximbank conducted an on-site post-loan inspection in May 2018.

Additional details

1. This project is also known as the 104MW (2x52MW) Nam Chiane 1 Hydropower Project, the Nam Chiean Hydropower Project, and the Nam Chien Hydropower Project. 2. The Chinese project title is 老挝南涧水电站项目. 3. 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.

Number of official sources

10

Number of total sources

25