China Eximbank pledges loan for Sekong Coal-Electricity Integration Project

On March 17, 2016, EDL-Generation Company Limited (EDL-Gen) — a state-owned power company in Laos — and China National Heavy Machinery Corporation (CHMC) signed a $2.1 billion EPC contract. The purpose of this project, which is located in Xékong Province, is to construct one coal mine with an annual production capacity of 3 million tons (raw coal), and one pit-mouth power plant with an total design installation capacity of 700MW (2 sets 350MW generator units). The anticipated period of construction is 48 months, and the project was originally scheduled to use a buyer’s credit loan (or ‘commercial loan’) from China Eximbank. However, it does not appear that a China Eximbank loan was ever finalized.

Additional details

This project is also known as the Xékong Coal-Electricity Integration Project. The Chinese project title is 老挝色贡煤电一体化项. Électricité du Laos (EDL) is the state corporation of Laos that owns and operates the country's electricity generation, electricity transmission and electricity distribution assets. The company also manages the import and export of electricity from the national electricity grid of the country. EDL-Generation Company Limited (EDL-Gen) was incorporated in 2010 and operates as a subsidiary of Electricite Du Laos.

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