CWE provides $50.4 million supplier’s credit for Phase 1 of 2x20 MW Nam Mang 3 Hydropower Station Project (Linked to Record ID#63233)

Project narrative

In 2002, China International Water & Electric Corporation (CWE) and the Government of Laos signed a supplier’s credit agreement for Phase 1 of the 2x20 MW Nam Mang 3 Hydropower Station Project. The estimated face value of the supplier’s credit is $50.4 million. The borrowing terms of the supplier’s credit were as follows: 2% interest rate, a 20-year maturity period, and an 8-year grace period. The borrower was to use the proceeds from the supplier’s credit to finance 80% of the $63 million cost of a commercial (EPC) contract that CWE and Électricité du Laos (EDL) signed on November 24, 2001. In order to finance its supplier’s credit agreement with the Government of Laos, CWE secured an export seller’s credit from China Eximbank. The purpose of the project was to construct a 40MW hydropower station (with two 20MW power generators) on the Nam Gnong River with annual power generation capacity of 133 million kWh. The station is located at Phou Khao Khouay Mountain, 60 km north of Vientiane Capital City and 15 km southwest of Nam Leuk Hydropower Plant. CWE was the EPC contractor responsible for implementation. The project officially commenced on January 11, 2002. On June 1, 2004, the reservoir began to store water. On October 1, 2004, the first power generation unit began generating electricity. On January 18, 2005, a project completion handover ceremony was held. China Eximbank also financed Phase 2 of the project (see Record ID#63233).