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 Record ID#67621)

Project narrative

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 Record ID#67621).