China Eximbank provides $21.25 million preferential buyer’s credit for Vientiane Flood Drainage Channel and Pump Station Project

In 2012, China Eximbank and the Government of Laos signed a preferential buyer’s credit (PBC) agreement for the Vientiane Flood Drainage Channel and Pump Station Project. The proceeds of the PBC were to be used by the borrower to finance a $25 million commercial (EPC) contract with China CAMC Engineering Co Ltd. The precise face value of the PBC is unknown. However, 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 $21.25 million (85% of $25 million). The purpose of the project was to construct flood drainage channels (measuring 2.3 km in length and 23 meters in width) — including footpaths on both sides — and a pump station (equipped with five 4.5 m3/s pumps in five villages within Sisattanak district: Kaoyord, Phiavat, Thatkhao, Beungkayong and Vat Nark. The ultimate purpose of the project was to allow for a better outflow of water from the city of Vientiane; the pumps that were to be installed were capable of handling at least 21.5 cubic meters per second, or an average of 77,400 cubic meters per hour. The project was also designed to support the 9th ASEM Summit in Laos by increasing the flood control capacity of Don Chan Island—the major activity area of the Summit — during rainy season. China CAMC Engineering Co Ltd. was the EPC contractor responsible for implementation. The project’s implementation start date is unknown. However, it is known that Prime Minister Thongsing Thammavong conducted an on-site project inspection on July 27, 2012 and Vice Prime Minister Thongloun Sisoulith conducted an on-site project inspection on August 5, 2012. The project was officially completed and handed over to the local authorities on March 21, 2013. Deputy Minister of Planning and Investment Khamlien Pholsena, Deputy Minister of Public Works and Transport Lattanamany Khounnivong, Vice Mayor of Vientiane Mr. Keophilavanh Aphaylath, President of CAMCE Luo Yan attended the project handover ceremony.

Additional details

This project is also known as the Vientiane City Floodway and Pumping Station Project. The Chinese project title 万象市东珍排洪渠及泵站项目. The China Eximbank loan that supported this project is not included in the Overseas Development Finance Dataset that Boston University’s Global Development Policy Center published in December 2020.

Number of official sources

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Number of total sources

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