China Eximbank provides RMB-denominated overseas investment loan for Phase 1 of Luangprabang Conch Cement Plant Construction Project

Project narrative

In 2016, the Anhui Branch of China Eximbank and Luangprabang Conch Cement Co., Ltd. (瑯勃拉邦海螺水泥有限公司) -- a special purpose vehicle and joint venture between China's Conch Group and Laos' Krittaphong Group -- signed an RMB-denominated overseas investment loan agreement for Phase 1 of the Luangprabang Conch Cement Plant Construction Project. The borrowing terms of the loan are unknown. However, it is known that the proceeds of the loan were to be used by the borrower to finance a commercial contract between Luangprabang Conch Cement Co., Ltd. and Shanghai Baoye Group Corp., Ltd. The purpose of the project was to construct a clinker cement production line -- with the capacity to produce 2500 tons per day -- in Nam Thouam within Luangprabang Province. Shanghai Baoye Group Corp., Ltd. (上海宝冶集团有限公司) -- a large, state-owned enterprise specializing in construction and engineering -- was the EPC contractor responsible for implementation. It won the EPC contract for the project on November 18, 2016. The project reached completion on November 29, 2019 when the first cement clinker production line was put into operation.