China Eximbank provides $39 million preferential buyer’s credit for Northern Province Rural Electrification Project

In 2010, China Eximbank and the Government of Laos signed a $39,094,086 preferential buyer’s credit (PBC) agreement for the Northern Province Rural Electrification Project. The borrowing terms of the loan are unknown. However, it is known that the borrower was to use the proceeds of the PBC to finance 95% of the cost of a $41,151,670 commercial (EPC) contract between China Gezhouba Group Company Limited (CGGC) and Electricite du Laos (EDL), which was signed on August 12, 2009. The purpose of the project was to construct a 1,030 km, 22kV power transmission line and a 246 km, 400V low-voltage power transmission line in seven provinces in northern Laos. Upon completion, the project is expected to benefit 30,000 households in 229 villages across the seven northern provinces. Construction commenced on or around July 24, 2010. Then, on April 15, 2012, Prime Minister Thongsing and CGGC staff representatives attended a ceremony marking the launch of power supply. The project was officially completed on May 30, 2012.

Additional details

The Chinese project title is 北方农村电网改造项目. 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

7

Number of total sources

11