Bank of China provides $140 million loan for 120MW Nam Ngum 5 Hydropower Plant Project (Linked to Project ID#67434)

In 2004, Électricité du Laos (EDL) — the state corporation of Laos that owns and operates the country's electricity generation, electricity transmission, and electricity distribution assets — and Sinohydro Corporation Ltd. signed a Memorandum of Understanding (MOU) regarding the 120MW Nam Ngum 5 (NN5) Hydropower Plant Project. Then, on July 3, 2007, EDL and Sinohydro Corporation Ltd. created a joint venture and special purpose vehicle called the Nam Ngum 5 Power Company (or Nam Ngum 5 Power Co., Ltd) in order to finance, develop and implement the 120MW Nam Ngum 5 Hydropower Plant Project on a build-operate-transfer (BOT) basis. Sinohydro Corporation Ltd. holds an 85% ownership stake and EDL holds a 15% ownership stake in Nam Ngum 5 Power Company. At the end of a 25-year concession period, Nam Ngum 5 Power Company will transfer ownership of the NN5 to the Lao Government. The total cost of the project falls somewhere between $200 million and $227.23 million. Bank of China issued a $140 million loan to Nam Ngum 5 Power Company in support of the project. The borrowing terms of the loan are unknown. Sinohydro Corporation Ltd. also made a $54 million equity contribution in support of the project (as captured by linked project ID#67434). The purpose of the project was to build a 120MW hydropower plant on the Nam Ting River (a main tributary of the Nam Ngum River) in Luangprabang Province and Xiangkhouang Province. The power plant was designed with two sets of 60MW hydro turbine and generator units. Upon completion, the power plant was expected to provide 501,930MWh each year to the national grid. The project involved the construction of a 104.5-meter-high dam, a powerhouse, and a 2.5 km 115kv transmission line that runs from the switchyard of the Nam Ngum 5 power station to a new 115kv substation near the Nam Ngum 5 powerhouse. The powerhouse is located 15 km south of the dam and it discharges water into the Nam Ngum River. The geographical coordinates of the dam are east longitude of 102°27’9.13586” and north latitude of 19°21’23.80023”. The geographical coordinates of the powerhouse are east longitude of 102°42’44.00212” and north latitude of 19°21’35.83757. Sinohydro Corporation Ltd. was the contractor responsible for implementation. A project feasibility study was completed in March 2008. Then, an environmental impact assessment (EIA) was completed in June 2008. The EIA was approved on June 23, 2008. Equipment purchase and construction contracts were signed on July 9, 2008 and August 31, 2008, respectively. Construction commenced on November 21, 2008. The project had achieved a 60% completion rate as of June 2011. It was ultimately completed in November 2012 and the power plant was put into commercial use in December 2012.

Additional details

1. This project is also known as the NN5 Project, the 120MW Nam Ngum 5 Hydropower Project, the NNG5 Project, and the Nam Ngum 5 Hydropower Development Project. The Chinese project title is 南俄5水电站项目. The Lao project title is ເຂື່ອນໄຟຟ້ານ້ຳງື່ມ 5. 2. The concession agreement and power purchase agreement was signed by Sinohydro and the Lao Government in 2007. The project was reportedly financed according to a 70:30 debt-to-equity ratio.

Number of official sources

13

Number of total sources

15