Lao PDR: Thanaleng Dry Port

proposed

The project involves financing of development, construction and equipment cost of the Thanaleng Dry Port (dry port) being developed by the Thanaleng Dry Port Sole Co. Ltd. (TDP Co. or the Project Company), in Vientiane, Lao PDR (Project). The Project is an integral part of the Lao PDR government's efforts to transform the land-locked country into a land-linked country. The dry port is strategically located within one km from the Lao PDR-Thailand Friendship Bridge over the Mekong River, the main cross-border trade point between Lao PDR and Thailand and serves as an international border checkpoint and cargo terminal. It is next to the terminus of the Lao PDR-China railway line which has been operational since December 2021. The Project will facilitate trade flows between; (i) China-Lao PDR bilateral trade, (ii) Thailand-Lao PDR bilateral trade and (iii) China-Thailand (via. Lao PDR) transit trade. The Project is expected to offer access to advanced logistics services including multimodality, trans-shipment and value-added services with potential cost and time savings. The Project has been partially operational since December 2021 and is expected to be fully operational by the end of 2022. The Project is developed by Sitthi Logistics (Sponsor), part of the Phongsavanh Group, a diversified Laotian business conglomerate. In July 2020, the Government of Lao PDR awarded a 50-year concession to Vientiane Logistics Park Co. Ltd. (VLP Co.), a special purpose vehicle established by the Sponsor to develop an integrated logistics park in Vientiane, which includes the development of the dry port and a multi-service logistics park. AIIB's proposed financing will be used to finance only the dry port which is being developed by TDP Co., a subsidiary of VLP Co.