Lao People's Democratic Republic: GMS Nam Theun 2 Hydroelectric Project

Sovereign Project | 37734-013 Status: Closed

The Asian Development Bank is working the Lao People’s Democratic Republic to build the Nam Theun 2 Hydroelectric Project (NT2). The project is seeting the standard for the construction of "good dams" - those that address environmental and social impacts, and steer revenue toward the country's neediest people.

Project Details

Project Officer
Bui, Duy-Thanh Southeast Asia Department Request for information
  • Lao People's Democratic Republic
  • Loan
  • Energy
Project Name GMS Nam Theun 2 Hydroelectric Project
Project Number 37734-013
Country Lao People's Democratic Republic
Project Status Closed
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 2162-LAO: GMS Nam Theun 2 Hydroelectric Project
Ordinary capital resources US$ 20.00 million
Loan: GMS Nam Theun 2 Hydroelectric Project
European Investment Bank US$ 52.00 million
Agence Francaise de Developpement US$ 6.50 million
International Development Association US$ 20.00 million
Strategic Agendas Environmentally sustainable growth
Drivers of Change Private sector development
Sector / Subsector

Energy - Large hydropower generation

Gender Equity and Mainstreaming No gender elements
Description The Project includes development, construction and operation of 1070 MW hydropower plant on Nam Theun reiver in Laos PDR. The project will export 5354 GWh electricity to Thailand and provides 300 GWh for domestic consumption. The project will promote enomic growth in the region. Project revenues will support the Government priority poverty reduction and environmental conservation programs as outlined in the National Growth and Poverty Eradication Strategy.
Project Rationale and Linkage to Country/Regional Strategy The project aims to support two of the Lao PDR key national development objectives through the powe sector: (i) promote economic and social advancement by providing electricity supply and (ii) earn foreign exchange from electricity export. The project is an integral part of the government development framework.

Sustainable economic growth

Poverty reduction in Lao PDR

Environmental conservation

Project Outcome

Description of Outcome

Provide stable and affordable electricity to Thailand and the Lao PDR in an environmentally and socially sustainable way

Generate revenue for the Government through the Project for its poverty reduction and conservation programs

Protection of the NNT-NPA

Progress Toward Outcome
Implementation Progress
Description of Project Outputs

1. Physical infrastructure built for power generation

2. Physical infrastructure built for power transmission

3. Environmental measures implemented

4. Resettlement and ethnic minority development plans implemented

5. NNT-NPA protected from illegal logging

6. Strengthened public expenditure management system

Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location Central provinces Khammuane & Bolikhamxay, SE of Vientiane.

Safeguard Categories

Environment A
Involuntary Resettlement A
Indigenous Peoples

Summary of Environmental and Social Aspects

Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation

Business Opportunities

Consulting Services not applicable

ADB loan is used as equity of GOL in the project company.

No specific procurement is needed.

Responsible Staff

Responsible ADB Officer Bui, Duy-Thanh
Responsible ADB Department Southeast Asia Department
Responsible ADB Division Energy Division, SERD
Executing Agencies
Ministry of Industry and Handicrafts
Dr. Somboune Manolom
Lao People's Democratic Republic
Nam Theun 2 Power Company Limited (NTPC)
Mr. Jean Pierre Katz
26 Khun Boulom Road
P.O. Box 5862,
Vientiane, LAO PDR


Concept Clearance 08 Mar 2003
Fact Finding 03 Aug 2004 to 06 Aug 2004
MRM 25 Nov 2004
Approval 04 Apr 2005
Last Review Mission -
PDS Creation Date 06 Dec 2006
Last PDS Update 16 Apr 2010

Loan 2162-LAO

Approval Signing Date Effectivity Date Closing
Original Revised Actual
04 Apr 2005 26 Apr 2005 30 May 2005 02 Feb 2011 - 02 Feb 2011
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 98.50 Cumulative Contract Awards
ADB 20.00 04 Apr 2005 15.50 0.00 84%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 78.50 04 Apr 2005 18.43 0.00 100%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - Satisfactory - Satisfactory - Satisfactory

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.

The Public Communications Policy (PCP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.

The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.

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.

Safeguard Documents See also: Safeguards

Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

Title Document Type Document Date
Nam Theun 2 Hydroelectric Project Environment and Social Impact Assessments Nov 2004

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

The Public Communications Policy (PCP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.

Requests for information may also be directed to the InfoUnit.

  • 09 Nov 2015 | News Release

    Statement on the Release of the NT2 Panel of Experts 24th Report

    The Nam Theun 2 Multipurpose Hydropower Project (NT2) in Lao PDR represents a long-term commitment and concerted effort by all stakeholders to develop a socially and environmentally responsible hydropower project—one that generates power while also protecting the environment and reducing poverty in one of the world’s poorest countries. We welcome the 24th Report of the International Environmental and Social Panel of Experts (PoE) for Project. 
  • 17 Nov 2010 | Article

    Life Beyond the Dam

    Though a hydropower project relocated villagers, it also brought electricity, roads, and schools to a remote valley. Phon Sa-On Resettlement Village, Nakai Province - Kai Kensavaong will never again walk the muddy lanes of her birth village. Her old home is beneath a reservoir of caramel-brown water. "I'll never forget that place," said the 41-year-old villager, her lips dyed pink from chewing betel nut. "It was my home. I picked my first bamboo stalks there."
  • 31 Jan 2009 | Project Result / Case Study

    Hydropower Helps Lift Rural Communities

    In Lao PDR, a hydroelectric project builds dams that address environmental and social problems and steer revenue toward the country's poorest people.