CWE provides $22.1 million supplier’s credit for Phase 2 of 2x20 MW Nam Mang 3 Hydropower Station Project (Linked to Record ID#63225)

Project narrative

In 2003, China International Water & Electric Corporation (CWE) and the Government of Laos signed a supplier’s credit agreement for Phase 2 of the 2x20 MW Nam Mang 3 Hydropower Station Project. The estimated face value of the supplier’s credit is $22,175,830. The borrowing terms of the supplier’s credit were as follows: 2% interest rate, a 15-year maturity period, and a 3-year grace period. The borrower was to use the proceeds from the supplier’s credit to finance 80% of the $27,719,788 cost of a commercial (EPC) contract that CWE and Électricité du Laos (EDL) signed on June 23, 2003. 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 reconstruct 6 substations and install 30 km of 115KV and 22KV transmission lines between the Nam Mang 3 Hydropower Station, Khoksaad, Thanaleng, and Naxaythong. This project reached completion status in 2005.