According to the KPL news agency the relevant agreement was signed in Vientiane in mid-May. In return, the bank will have a share in the joint venture between the Lao government and South East Asia Limited who will construct the project.

The Nam Ngum 2 project will comprise a hydroelectric power plant with a capacity of 615MW that will be constructed by 2011. Its total construction cost will be close to US$832M.

Much of the plant’s electricity will be supplied to the Electricity Generating Authority of Thailand (EGAT), while the remainder will be supplied to rural areas in Laos.

Meanwhile, the Norwegian government has provided a grant worth US$1.5M to Laos to part finance the construction of the Second Xeseth hydroelectricity dam construction project in Saravan province. The relevant agreement was signed in Vientiane in late May.

The Bank of China is providing a US$135M low-interest loan for the implementation of the project.