Houay Ho Hydro Power Project

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The 126MW, US$220.0 Houay Ho Hydro Power Plant is located in Attapu province. It was originally being developed through a 25-year BOT through a consortium of Daewoo Corp of Korea (60%), Loxley Plc. of Thailand (20%) and Electricite du Laos (20%), a special purpose company created by the Govt of Laos. In January 2002, Daewoo Engineering and Construction sold its 60% stake to Tractebel for US$121 million. The project company name is Houay Ho Power Co. Loxley sold its share in the plant in 2002. Sulzer and ABB were the turnkey contractors and equipment was being purchased from Voest Alpine Industrienlangenbau. Initial financing came in the form of a $20.0 million bullet loan from the Korea Long Term Credit Bank and was obtained in December 1996. Taylor DeJongh was the financial advisor to the consortium. The project is currently under construction and was expected to become operational in 1999. A 30-year PPA was signed with the Electricity Generating Authority of Thailand (EGAT) in June 1996 to export power output from the project. In December 2002, the project company obtained additional financing in the form of a debt amount of US$95 million which was provided by a syndicate of Thai Banks led by Bangkok Bank but including Bank of Ayudhya, Bank Thai, Thai Exim Bank and Thanachart Bank. ONDD, a Belgian export credit agency, is providing political risk insurance. There was also a US$3 million facility which was for bankers' letter of guarantee to Egat. In January 2015 refinancing of the project reached financial closure. Borrower was Houay Ho Power Co Ltd. Sponsors were Glow Co (67.25%) (a subsidiary of Glow Energy PCL which is majority owned by GDF SUEZ), the Electricite du Laos (20%), and Hemaraj Land and Development (12.75%). Financing comprised a US$84 million 9-year term loan. Credit Agricole and SMBC are MLAs. SMBC was also the facility agent. Financial close was expected to happen 24 Sept 2014, but it was delayed.