Nam Ngiep 1 gets loans
Under the lead by Asian Development Bank (ADB) and Japan Bank for International Cooperation (JBIC), four Thai banks have taken part in the credit facility for a hydropower plant in Laos.
Aside from Bangkok Bank, Export-Import Bank of Thailand, Kasikornbank and Siam Commercial Bank, three Japanese banks - Mizuho Bank, Sumitomo Mitsui Banking Corporation, and Bank of Tokyo-Mitsubishi UFJ - are also backing the 290-megawatt Nam Ngiep 1 project.
Following the signing of the loan facility on August 15, the construction will start next month. Generation is scheduled for early 2019. Ninety five per cent of the power will be exported to Thailand under the power purchase agreement with Electricity Generating Authority of Thailand (EGAT) and the remaining five percent will be used domestically.
EGAT International holds a 30 per cent stake in the project, while the rest is owned by KPIC Netherlands (45 per cent), a subsidiary of Japan’s Kansai Electric Power; and the Lao Holding State Enterprise (25 per cent).
Following several years of local and national consultations on the project plans including construction design, a social development plan and an environmental management plan, the Nam Ngiep 1 Concession Agreement was approved by the National Assembly in early April 2014.
The project’s objective is to provide electricity to the Lao national grid and to the neighbouring country, earning foreign exchange for national development.
ADB social and environmental standards are built into the company’s agreement with the government and NNP1 is committed to building an environmentally sustainable project that contributes to improved livelihoods for local communities and Lao people in general.