NORINCO provides $100 million supplier credit for Water Pipe System Extension of Sandin Water Supply Plant and Replacing of Old Water Pipe for Nampapa Nakhnone Luang Project

In 2016, China North Industries Corporation (NORINCO) — a Chinese state-owned company — issued a $100 million supplier credit to Nakhonluang Water Supply Enterprise — a special purpose vehicle that is owned by Asia Investment, Development and Construction Sole Co., Ltd. — for the Water Pipe System Extension of Sandin Water Supply Plant and Replacing of Old Water Pipe for Nampapa Nakhnone Luang Project. The borrowing terms are unknown, but it is known that the Ministry of Finance of Laos issued a sovereign guarantee in support of the supplier credit (loan). This project involved the expansion of a 60 km water distribution pipeline from Sendine (Sandin) BOT Project to Naxaithong District; the expansion of an 80 km water distribution pipeline for Dongmakkhay water treatment plant to Saithany district and Saysettha district; and the installation of a water supply supervisory control and data acquisition system to help reduce the water leakage and improve the management efficiency. Upon completion, it was expected that the project would supply 30,000 cubic meters of healthy and sanitary water per day to nearly 23,000 households in the Lao capital of Vientiane. NORINCO was the EPC contractor responsible for implementing the project according to the terms of the commercial contract that was signed on March 31, 2016. Project implementation commenced on October 12, 2016 and ended on February 27, 2019. China Eximbank financed the Dongmarkkhai Water Supply Expansion Project (see Project ID#33828) and the Sendine (Sandin) BOT Project (see Project ID#85306).

Additional details

1. The Chinese project title is 老挝万象市政供水项目. 2. One official source suggests that the face value of the supplier credit was $70 million. AidData relies on an estimate from a more recent official source for the time being. This issue merits further investigation.

Number of official sources

9

Number of total sources

21