40906-014: NAM NGUM 3 HYDROPOWER PROJECT

Project Data Sheet (PDS): Overview


Description

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. Read More

Country Lao People's Democratic Republic
Borrower/Equity Investment Name NAM NGUM 3 POWER COMPANY
Project Number 40906-014
Project Type or Modality of Assistance Private Sector Loan and Equity
Financing Private sector (Nonsovereign)
Status Terminated / Cancelled
Date of Termination 01 Jan 2013
Reason for Termination
Approval Numbers 7341
Approval Date 03 Nov 2011
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.
Sector / Subsector Classification Not yet classified
/ For Classification
Safeguard Categories Environment: A
Resettlement: A
Indigenous People: A

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Project Data Sheets (PDS)

Responsible ADB Officer
Christine Genalin C. Uy
Request for information

Responsible ADB Department
Private Sector Operations Department

Responsible ADB Divisions
Infrastructure Finance Division 2

PDS Creation Date
13 Feb 2006

Last PDS Update
14 Dec 2012

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