The Asian Development Bank has agreed US$100M in private funding for the Nam Theun 2 hydro power scheme under development in Lao PDR only a few months after approving another loan.
ADB has approved US$50M of private sector loan for the project and also provided US$50M of political risk guarantee. Earlier this year the bank separately approved a US$20M loan to the project.
Nam Theun 2 will have an installed capacity of 1070MW and is to export 5354GWh of electricity across the boarder to Thailand. Project sponsors include Italian Thai Development Public Co (ITD), edf International and the government of Lao PDR.
The project is being developed on the Nam Theun river and will include a 39m high dam to impound a reservoir that gives a head of 350m over the power house.
Nam Theun 2 Power Co, the developer of the scheme, has a 31-year concession – including 25 years of operation. Under the concession agreement, Lao PDR will earn income from taxes, royalties and dividends, and 300GWh is to be kept for use in the country.
In recent months the bank and the World Bank noted progress being made in the development of the scheme, including institutional and corporate strengthening, and enviro-social adaptation being matched to the construction progress and resettlement activities.