China Eximbank pledges $60.86 million preferential buyer’s credit for Nam Theun 2 Tailrace Outlet No. 4 and Outlet No. 1 Irrigation Subproject (Linked to Project ID#67621)

On October 15, 2014, the Government of Laos and Northern International Cooperation Co., Ltd (NORINCO) signed a commercial contract for the Nam Theun 2 Tailrace Outlet No. 4 and Outlet No. 1 Irrigation Subproject with an estimated value of $71.6 million. China Eximbank reportedly agreed (at least in principle) to issue a preferential buyer’s credit (PBC) to finance this contract. The precise face value of the PBC is unknown, but 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 $60.86 million (85% of $71.6 million). This project — also known as Phase 2 of the Xebangfai-Xebanghieng Irrigation and Flood and Drought Management Scheme — involved the construction of an irrigation infrastructure in the irrigation area controlled by Nam Theun 2 Tailrace Outlet No. 1 and Tailrace Outlet No. 4. Upon completion, the two tailrace outlets were expected to have the capacity to irrigate a combined 7,600 hectares of cultivated land in Gnommalath and Mahaxay districts. NORINCO was the EPC contractor responsible for implementation. AidData has not identified any evidence that this project was implemented. China Eximbank also financed the Nam Theun 2 (NT2) Tailrace Outlet No. 3 Irrigation Subproject (see Project ID#67621).

Additional details

This project is also known as Phase 2 of the the NT2 Irrigation Project. The Chinese project title is Xebangfai河流域灌溉和防洪管理项目 or 老挝南腾2水电站灌溉项目 or 老挝甘蒙省灌溉项目 or 老挝南腾2水电站尾水1号闸门灌溉项目 or 际就老挝甘蒙省南腾2尾水渠1号4号闸门灌溉项目 or 老挝南腾2灌溉二期项目.

Number of official sources

5

Number of total sources

8