China Eximbank provides $86.9 million preferential buyer's credit for Phongsaly-Lantouy International Checkpoint Section of National Road No. 1A Upgrading Project

On January 5, 2011, Guangdong No.3 Water Resources and Hydropower Engineering Board (广东省水利水电第三工程局) and the Ministry of Public Works and Transport of Laos signed a $91,590,903 commercial engineering, procurement, and construction (EPC) contract for the Phongsaly-Lantouy International Checkpoint Section of the National Road No. 1A Upgrading Project. China Eximbank subsequently issued a $86,925,000 preferential buyer’s credit (PBC) to the Government of Laos in support of this project. The borrowing terms of the PBC are unknown. However, it is known that the borrower was to use the PBC proceeds to finance 95% of the cost of the EPC contract. The purpose of the project was to renovate a 141.7 km section of National Road No. 1A that runs from the town of Boun Neua (Bounneua orເມືອງບຸນເໜືອ) in Phongsaly Province to Lantouy International Checkpoint at the Laos-China border. Guangdong No.3 Water Resources and Hydropower Engineering Board was the EPC contractor responsible for implementation. Construction began on November 30, 2013 and the project was originally expected to reach completion on May 30, 2017. As of March 2014, 26.2% of the earth and stone works were completed, and 2.7% of the drainage works were completed. As of September 2014, the project had achieved a 40% completion rate. This project was ultimately completed, but its precise implementation end date is unknown.

Additional details

1. This project is also known as the National Road No. 1A Renovation Project. The Chinese project title is 老挝丰沙里省本怒至兰堆1A道路建设修整项目 or 丰沙里省国道扩建工程 or 老挝1A道路改造项目. 2. 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

7

Number of total sources

12