The European Investment Bank (EIB) will lend US$55M to Laos for the construction of the Nam Theun 2 hydroelectric plant.
The loan will be used by the Government of Laos to make its equity contribution in the Nam Theun 2 Power COmpany (NTPC) in charge of the project. The loan will have a 30-year term, including a grace period of six years.
The total estimated cost of the project is close to US$1.3B. The Lao Government’s equity contribution will be financed by a US$20M long-term loan from the Asian Development Bank, as well as by grants from the World Bank and the Agence Française de Développement (AFD).
The Nam Theun 2 project will further sustain economic and social development in Laos. Commercial operations are scheduled for November 2009, and some 95% of the electricity produced will be exported to Thailand.