China Eximbank provides $29.4 million preferential buyer’s credit for Nam Theun 2 (NT2) Tailrace Outlet No. 3 Irrigation Subproject (Linked to Project ID#63933)

In 2013, China Eximbank and the Government of Laos signed a preferential buyer’s credit (PBC) agreement for the Nam Theun 2 (NT2) Tailrace Outlet No. 3 Irrigation Subproject. The proceeds of the PBC were to be used by the borrower to finance 95% ($29.4975 million) of the cost of a $31.05 million commercial contract with China North Industries Group Corporation Limited (NORINCO) and Sinohydro Corporation Ltd. (Sinohydro), which was signed in April 2013. This project — also known as Phase 1 of the Xebangfai-Xebanghieng Irrigation and Flood and Drought Management Scheme — involved the construction of an irrigation canal system, access roads, farm bridges, and other supporting works (measuring 101 km in length and covering 2800 hectares) in the irrigation area controlled by Nam Theun 2 Tailrace Outlet No.3. The ultimate purpose of the project — located in Nhommalath District within Khammouane Province — was to utilize water discharged from outlet No. 3 of the Nam Theun 2 Hydroelectric Project, to improve the living conditions of the people inhabiting the irrigated areas, increase food production, and reduce flood damage. NORINCO and Sinohydro were the EPC contractors responsible for implementation. Construction commenced on November 2, 2013 and ended on January 6, 2015 ("驻老挝大使关华兵出席甘蒙省灌溉项目开工仪式"). At a project completion ceremony on February 5, 2015, then Deputy Prime Minister of Laos Somsavat Lengsavad struck a gong 12 times to ask for a constant flow of water 12 months a year and a good harvest every year. Upon completion, the project reportedly benefited 1,300 farming households in nine villages by providing a stable source of irrigation water for 2,800 hectares of paddies and other cash crops. China Eximbank also financed the Nam Theun 2 Tailrace Outlet No. 4 and Outlet No. 1 Irrigation Subproject (see Project ID#63933).

Additional details

This project is also known as the Nam Theun 2 Sluice No.3 Irrigation Project and Phase 1 of the the NT2 Irrigation Project. The Chinese project title is 老挝甘蒙省灌溉项目 or 老挝南腾2水电站尾水1号3号5号闸门灌溉项目 or Xebangfai河流域灌溉和防洪管理项目 or 老挝南腾灌溉项目 or 老挝南腾2尾水三号闸门灌溉项目 or 老挝南腾2水电站尾水3号闸门灌溉项目. 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

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