Asian Development Bank

Implementation Arrangements

The Executing Agency for the Project is Theun Hinboun Power Co., Ltd. (THPC). Its sponsors are experienced in all facets of hydropower project financing, construction and operation. Electricité du Lao (EdL) and the shareholders of Nordic Hydropower (NH) are experienced in the construction and operation of hydropower plants, while the major shareholder of MDX Lao Co. Ltd. (MDXL) is experienced in arranging project financing. During project implementation the partners shared responsibilities according to their respective areas of expertise. Thus, EdL provided local professional and supporting staff, NH was responsible for overall project management and training services, and MDXL for accounting and financial management. THPC is conservatively capitalized with a 54:46 debt/equity ratio and adequate financing was put in place to complete the construction phase and provide for initial operating expenses. THPC has an authorized capital of $ 110 million consisting of 660,000 class "A" shares held by the Government and 440,000 class "B" shares held by NH and MDXL of $ 100 each, issued and subscribed at par and paid in full by the JV partners. The Government equity holder, EdL is a well run state organization which ensures that the country’s interests are fully protected during the life of the JV.