Project Data Sheet

Project Data Sheets (PDS) contain summary information on the project or program: Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

PDS Creation Date 13 Feb 2006
PDS Updated as of 14 Dec 2012

Borrower/Equity Investment Name NAM NGUM 3 POWER COMPANY
Country Lao People's Democratic Republic
Project/Program Number 40906-014
Status Terminated / Cancelled
Geographical Location The project is located on the Nam Ngum River, about 10 kms southwest of Ban Longcheng in Xiasomboun District of Vientianne, Lao PDR. It is approximately 260 kms by road from Vientianne.
In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.
Sector and/or Subsector Classification Not yet classified
/ For Classification
Thematic Classification Economic growth
Private sector development
Regional cooperation and integration
Not yet classified
Gender Mainstreaming Categories

Project Sponsors

GMS Lao Company Limited
Lao Holdings State Enterprise
Marubeni Corporation
Ratchaburi Electricity Generating Holding PLC


Type/Modality of Assistance Approval Number Source of Funding Approved Amount (thousand)
Private Sector Loan and Equity7341Others
(Documents under Negotiations)
Private Sector Loan and Equity7341Private Sector Loan
(Documents under Negotiations)
TOTAL USD 350,000

Summary of Environmental and Social Issues

Environmental Aspects
Involuntary Resettlement
Indigenous Peoples

Stakeholder Communication, Participation and Consultation

During Project Design
During Project Implementation


The Nam Ngum 3 Hydropower Project (NN3) is a 440-megawatt (MW) hydropower plant that will be located on the Nam Ngum River, a tributary of the Mekong River in the Lao People s Democratic Republic (Lao PDR), 130 kilometers from the capital city of Vientiane and 260 km upstream of the confluence with the Mekong River. The power generated by the project will be sold to Thailand under a power purchase agreement (PPA) with the Electricity Generating Authority of Thailand (EGAT). Nam Ngum 3 Power Company (NN3PC) will build, own, and run the hydropower plant for a 27-year concession period. NN3PC is owned by GMS Lao Company, a subsidiary of GMS Power of Thailand (27%); Ratchaburi Electric Generating Holding PCL of Thailand (25%); Axia Power, a wholly owned subsidiary of Marubeni Corporation of Japan (25%); and The Lao Holding State Enterprise (LHSE) of the Lao PDR (23%). Under 40906-014: Nam Ngum 3 Hydropower Project, ADB will provide private sector (nonsovereign) financing for the construction of a 220-meter-high concrete-faced rock-fill dam, an underground power station, a gated spillway to release water from the dam, an underground 10.6-km headrace tunnel to channel water from the reservoir to the power station, and a 99-km 500-kV transmission line. ADB will lend up to $350 million to NN3PC. Under a risk participation agreement, commercial banks will assume the risk on up to $150 million of that. Thai banks and other international financial institutions will also provide loans to the project. ADB is also lending approximately $115 million to the Lao PDR government to finance LHSE s equity stake in NN3PC and for the development of dedicated transmission facilities, which will be needed to export electricity to Thailand.1

Objectives and Scope

The NN3 plan will promote economic growth in Lao PDR by generating upwards of $770 million in export earnings for Lao PDR, of which more than $200 million is expected to go to poverty reduction and environmental protection programs. It will also provide critical energy to support sustainable economic growth and improve energy security in Thailand by diversifying the country s energy sources.

Project Rationale and Linkage to Country/Regional Strategy

ADB's participation in NN3 is consistent with its Country Strategy Program for Lao PDR (2007-2011), which calls for interventions designed to advance economic growth and poverty alleviation. The Country Strategy Program call for ADB to pursue public-private partnerships in large-scale infrastructure projects and projects promoting regional cooperation, among other activities.

Outputs and Implementation Progress

Description of Project Outputs
Construction of Nam Ngum 3 Hydropower Project in Lao PDR as a public-private partnership in an environmentally sustainable and socially inclusive manner
Status of Implementation Progress (Outputs, Activities, and Issues)
Status of Development Objectives
Material Changes

Business Opportunities

Date of First Listing
Consulting Services
Procurement and Consulting Notices


Concept Clearance 17 Jan 2006
Management Review Meeting 14 Mar 2011
Approval 03 Nov 2011
Last Review Mission


Approval No. Approval Signing Effectivity Closing
Original Revised Actual
Private Sector 7341 03 Nov 2011 01 Jan 1970

Contacts and Update Details

Responsible ADB Officer Christine Genalin C. Uy (
Responsible ADB Department Private Sector Operations Department
Responsible ADB Divisions Infrastructure Finance Division 2
Executing Agencies


Project Website
List of Project Documents