Series of deals to boost finances for power export project

The Asian Development Bank (ADB) has approved a series of loans for the Nam Theun 2 hydroelectric project in Laos, due to come on line in 2009.

ADB will grant a $20 million public sector loan, a private sector loan of up to $50 million, and a political risk guarantee of up to an aggregate maximum liability of $50 million. The public sector loan will be used to purchase equity shares in the Nam Theun 2 Power Company Ltd, which will develop, construct, and operate the 1,070 MW trans-basin diversion power plant on the Nam Theun river. The private sector loan will be provided directly to NTPC, which is itself owned by a consortium of EdF International with 35%, the Laotian government and the Electricity Generating Public Company of Thailand with 25% each, and the Italian-Thai Development Public Co, also of Thailand, with 15%.

Total estimated costs for the project, which is expected to export some 5 TWh to Thailand every year, is about $1.25 billion. It will generate about $1.9 billion in foreign exchange earnings over the 25 year lifespan.