China Eximbank provide $45.6 million preferential buyer's credit for 23MW Xeset 3 Hydropower Project”

In 2014, China Eximbank and Électricité du Laos (EDL) — the state corporation of Laos that owns and operates the country's electricity generation, electricity transmission and electricity distribution assets — signed a $45.657 million preferential buyer's credit (PBC) agreement for the 23MW Xeset 3 Hydropower Project. The borrowing terms of the PBC are unknown. However, it is known that the borrower was to use the PBC proceeds to approximately 90% of the $50.73 million cost of a commercial (EPC) contract between EDL and NORINCO International Co., Ltd. In order to facilitate loan repayment, the borrower (EDL) was responsible for depositing revenues into an escrow account. The purpose of the project was to construct a 23MW hydropower plant on the Xeset river between Saravan and Champassak provinces, about 750 kilometers from Vientiane. The exact locational coordinates of the power plant are 15.342113°N 106.31115°E. Upon completion, the plant was designed to produce 80 million kilowatt hour (kWh) per year. The main components included an inter-basin water transfer system, a dam water retaining system, water diversion, and a power generation and transmission system. NORINCO International Co., Ltd. was the EPC contractor responsible for implementation. Construction officially began on January 18, 2004. The first power generating unit of the hydropower station successfully passed a 72 hour trial operation on July 28, 2016, after which point it started to generate electricity 5 months ahead of schedule. A project completion ceremony was held on or around January 9, 2017. The originally anticipated project completion date was January 17, 2017.

Additional details

The Chinese project title is 赛德3水电站.

Number of official sources

11

Number of total sources

20