Hydropower project in Laos secures $217m loan

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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The 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...

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.



Support ASEAN news

Investvine has been a consistent voice in ASEAN news for more than a decade. From breaking news to exclusive interviews with key ASEAN leaders, we have brought you factual and engaging reports – the stories that matter, free of charge.

Like many news organisations, we are striving to survive in an age of reduced advertising and biased journalism. Our mission is to rise above today’s challenges and chart tomorrow’s world with clear, dependable reporting.

Support us now with a donation of your choosing. Your contribution will help us shine a light on important ASEAN stories, reach more people and lift the manifold voices of this dynamic, influential region.

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Donation Total: $10.00