Hydropower project in Laos secures $217m loan

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Laos hydropowerThe Asian Development Bank (ADB) has approved funding worth $217 million for a 290-megawatt hydropower project in Laos

The bulk of the electricity generated by Nam Ngiep 1 will be delivered to neighbouring Thailand, which relies heavily on natural gas. The project is expected to cut around 500,000 tonnes of carbon emissions in Thailand every year.

Laos has a hydropower potential of 20,000 megawatt, according to the ADB.

Kurumi Fukaya, Lead Investment Specialist at ADB’s Private Sector Operations Department said: “The project is a win-win for Laos and Thailand. It will generate revenues for the Laos’ economic and social development and provide Thailand with cost-efficient power.”

The facility is expected to start producing electricity in 2019.

The project will be constructed on the Nam Ngiep River in the provinces of Xaysomboun and Bolikhamxay. It consists of a main power station, a reservoir of 67 square kilometers, a re-regulation power station, and a 125-kilometer transmission line to connect the main power station to the Nabong substation near the capital Vientiane.

The financing comprises a $50 million direct loan, a $95-million baht-denominated loan and a separately funded B loan of $72 million. The B loan is funded by The Bank of Tokyo-Mitsubishi, Sumitomo Mitsui Banking Corporation and Mizuho Bank, with ADB acting as lender of record. The project will also be financed by Japan Bank for International Cooperation and four Thai banks.

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Reading Time: 1 minute

The Asian Development Bank (ADB) has approved funding worth $217 million for a 290-megawatt hydropower project in Laos

Reading Time: 1 minute

Laos hydropowerThe Asian Development Bank (ADB) has approved funding worth $217 million for a 290-megawatt hydropower project in Laos

The bulk of the electricity generated by Nam Ngiep 1 will be delivered to neighbouring Thailand, which relies heavily on natural gas. The project is expected to cut around 500,000 tonnes of carbon emissions in Thailand every year.

Laos has a hydropower potential of 20,000 megawatt, according to the ADB.

Kurumi Fukaya, Lead Investment Specialist at ADB’s Private Sector Operations Department said: “The project is a win-win for Laos and Thailand. It will generate revenues for the Laos’ economic and social development and provide Thailand with cost-efficient power.”

The facility is expected to start producing electricity in 2019.

The project will be constructed on the Nam Ngiep River in the provinces of Xaysomboun and Bolikhamxay. It consists of a main power station, a reservoir of 67 square kilometers, a re-regulation power station, and a 125-kilometer transmission line to connect the main power station to the Nabong substation near the capital Vientiane.

The financing comprises a $50 million direct loan, a $95-million baht-denominated loan and a separately funded B loan of $72 million. The B loan is funded by The Bank of Tokyo-Mitsubishi, Sumitomo Mitsui Banking Corporation and Mizuho Bank, with ADB acting as lender of record. The project will also be financed by Japan Bank for International Cooperation and four Thai banks.

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