Project Data Sheet (PDS): Details


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.

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.

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

Safeguard Categories

Environment: A
Involuntary Resettlement: A
Indigenous Peoples: A

Project Sponsors

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

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.

Project Data Sheets (PDS)


Concept Clearance
17 Jan 2006

Private Sector Credit Committee Meeting
14 Mar 2011

Board Approval
03 Nov 2011