China Eximbank provides RMB 49.38 million loan for the Saysettha Comprehensive Development Zone Project (Linked to Record ID#64771, #64770)

Project narrative

On July 11, 2012, Chinese Government and the Lao Government signed an agreement to co-invest $360 million in the Saysettha Comprehensive Development Zone Project. In order to facilitate the implementation of this project, a joint venture called Lao-China Joint Venture Investment Co., Ltd. was established. It is jointly owned by Yunnan Provincial Overseas Investment Co., Ltd. (75% ownership stake) and the Municipal Government of Vientiane (25% ownership stake. The company's total share capital is $128 million, of which Yunnan Provincial Overseas Investment Co., Ltd. contributed $98 million and the Municipal Government of Vientiane contributed $30 million. In 2013, China Eximbank issued an RMB 200 million loan (captured in Record ID#64770) to Yunnan Overseas Investment Co., Ltd. to cover its pre-investment expenses related to the Saysettha Comprehensive Development Zone Project. Then, on May 12, 2015, the Yunnan Branch of the Export-Import Bank of China issued the first installment of a loan worth RMB 420 million to Yunnan Overseas Investment Co., Ltd. for the Saysettha Comprehensive Development Zone Project. This loan was provided in a USD-denominated tranche and an RMB-denominated tranche: Record ID#64771 captures the $60 million tranche and Record ID#67552 captures the RMB 49.38 million tranche. The purpose of the project is to build an industrial park (or ‘comprehensive development zone’) in downtown Vientiane, the capital of Laos. The development zone will be a low carbon demonstration zone which seeks to address climate change and support the green and low-carbon transition. The park covers covering an area of 11.5 square kilometers, and it is 19 km away from Wattay International Airport, 10 km from the planned new airport and 1.5 km from the Sino-Laos Railway Freight Station. Construction started on September 8, 2012. It is still under implementation.