WLE Mekong
  • About Us
    • About us
      • Our objectives
      • Our team
      • Contact us
    • Our partners
        • Cambodian Partners
        • Chinese Partners
        • International Partners
        • Lao Partners
        • Myanmar Partners
        • Thai Partners
        • Vietnamese Partners
    • Close
  • Changes
    • Where We Work
      • Irrawaddy River Basin
      • Mekong River Basin
      • Red River Basin
      • Salween River Basin
      • View all projects
    • Our Work
      • Benefit-sharing
      • Catchments & Landuse
      • Gender & Diversity
      • Research for Development
      • River Food Systems
      • River Monitoring
      • Water Governance
      • Capacity Building & Professional Development
    • Our Research
      • Greater Mekong Dams Observatory
      • State of Knowledge Series
      • Water Knowledge Series
      • Irrawaddy River Basin
      • Mekong River Basin
      • Red River Basin
      • Salween River Basin
    • Close
  • Dialogue
    • Stories
      • Irrawaddy River Basin
      • Mekong River Basin
      • Red River Basin
      • Salween River Basin
      • Mekong Citizen
    • Greater Mekong Fora
      • 2018 Greater Mekong Forum
      • 2017 Greater Mekong Forum
      • 2016 Greater Mekong Forum
      • 2015 Greater Mekong Forum
    • Close

Mekong Blog

  • Mekong River Basin

Thai banks finance Lao hydropower project

  • Stories
  • Greater Mekong Forums
  • Mekong Citizen

Thai banks finance Lao hydropower project

AdminMarch 27, 2014Vientiane Times

Vientiane Times, March 26, 2014

Xe-Pian Xe-Namnoy Power Company has secured funding to finance its hydropower project in the southern provinces of Laos, after four leading Thai banks agreed to fa cilitate the credit.

The company’s CEO, Mr Choi Young-Ju, announced last week that Krungthai Bank, the Export-Import Bank of Thailand, Bank of Ayudhya and Thanachart Bank had agreed to provide the company with US$700 million in loans to finance the project.

Construction of the 410 MW hydropower plant on the Bolaven Plateau bordering Champassak and Attapeu provinces is expected to begin in the near future, while commercial operation is scheduled to kick off in 2018.

The 410 MW hydropower plant is expected to generate 1,860GWh per year. About 370MW from the project will be distributed to the Electricity Generating Authority of Thailand under a 27-year power purchase agreement while the rest will be directed to Laos’ electricity grid.

The four banks’ decision to finance the hydropower project was one of the best reflections that Thai banks are confident about financing mega-investment projects in Laos.

Surging demand for electricity in Thailand has helped convince Thai banks to finance the project, which will generate the income to pay off the debt.

Xe-Pian Xe-Namnoy Power Company is a joint venture of SK Engineering and Construction Co with 26 percent, Korea Western Power Co with 25 percent, Ratchaburi Electricity Generating Holding Plc with 25 percent and the government of Laos via Lao Holding State Enterprise with 24 percent.

Mr Choi said once commercial operation started in 2018 and electricity started to be produced the project would not only make an outstanding contribution to economic development in Laos over coming decades but also help Thailand stabilise its power demand in the future.

Thailand has agreed to purchase 7,000 MW of power from Laos by 2015. At present, Laos has at least 20 hydropower plants with an installed capacity of about 3,000 MW.

The country has the potential to build 100 hydropower plants with an installed capacity of about 28,000 MW.

A number of Thai banks have established offices in Laos after learning that they need to provide service to their customers in the country.

There are a number of Thai investment projects in Laos. Most of them are involved in the construction and operation of hydropower plants.

One of the mega-investment projects that Thai banks have agreed to finance is the Xayaboury hydropower project, which is the first Mekong dam in Laos.

The Hongsa lignite-fired power plant is another Thai-funded project.

Previous
Story
Next
Story

Related Stories

  • mekong
    November 29, 2017
    Development Reduces Gender Impacts of Hydropower - a Perspective in China
    Gender & Diversity
  • mekong
    December 4, 2012
    Nam Khan II power plant has carbon offset potential
  • mekong
    November 19, 2013
    It could be citizen science Part 2: Crowdmapping CPWF’s map of hydroelectric dams in the Mekong
  • mekong
    October 14, 2012
    Xayaboury dam will have no transboundary impact: Project developers
  • mekong
    December 15, 2013
    Govt revokes agreement with Russian company on dam development
    Water Governance
  • mekong
    February 20, 2013
    Study sets Xayaboury irrigation scheme back on track
  • mekong
    June 13, 2013
    Natural resources could pay for nationwide primary education: Report
  • mekong
    March 28, 2013
    World Water Day a Week Long in Laos
  • mekong
    September 20, 2013
    Surveys begin on Borikhamxay dams
  • mekong
    February 20, 2014
    Luang Prabang hydropower development to surge
  • mekong
    August 29, 2013
    Developers ink concession agreement for Borikhamxay dam
  • mekong
    October 8, 2014
    "Mekong - The Movie" to be screened at 14th International Film Festival on Energy
  • mekong
    May 15, 2014
    Nam Ngum 5 provides assistance to affected villagers
  • mekong
    March 28, 2013
    Laos urged to revise energy production and supply policy
  • mekong
    February 5, 2015
    Extraordinary Meeting of the Friends of the Lower Mekong
  • mekong
    June 20, 2018
    Science-policy collaboration: an appealing way to tackle pollution from bananas
    Water Governance
  • mekong
    February 12, 2013
    Nam Lik 1 power dam construction to begin soon
  • mekong
    August 25, 2013
    Two hydro projects ready to go in Saravan
  • mekong
    May 15, 2014
    Mekong nations commit to sustainability
  • mekong
    April 24, 2014
    Laos welcomes comments on Don Sahong dam

The sustainable development of the Greater Mekong depends on the fair and equitable governance of its water.

ABOUT WLE

  • Our objectives
  • Our team
  • Our partners
  • Terms of use
  • Newsletters
  • Contact us

CO-SUPPORTED BY

WLE Greater Mekong is funded in part by the Australian Department of Foreign Affairs and Trade (DFAT).

Water, Land & Ecosystems Mekong - footer logos
© All rights reserved - WLE CGIAR
Subscribe to our newsletter SIGN UP
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.OkPrivacy policy