Nam Ngum III HPP

Active

Prospective

The Nam Ngum 3 Power Company (NN3PC), sponsored by Mrubeni Corporation, Ratchaburi Electricitiy Generating Holding PLC, GMS Lao Company and Lao Holding State Enterprise were planning the development of the 440 MW Nam Ngum 3 hydropower plant, southwest of Ban Longcheng, Xiasomboun District of Vientianne. Project capacity was reported as 460 MW by the Laos government. The project was to consist of an underground power station, 220 meter high dam and 105 km of transmission line (500 kV). Production was expected at 2,072 GWh annually, generating $770 million in revenue of which $200 million was earmarked for social services and environmental protection programs. GMS Lao was a subsidiary of Thailand's GMS Power Public Company, subsidiary of MDX public company. GMS was listed on the Stock Exchange of Thailand (SET). Ratchaburi Electricity Generating Holding was 45% owned by EGAT. Mrubeni participated in the project through its subsidiary Axia Power Holdings BV. Marubeni was listed on the Tokyo Stock Exchange. LSHE was a 100% state-owned entitiy of Lao PDR. GMS Lao held 27% of the equity, Ratchaburi Electricity held 25%, and Mrubeni (from Japan), held 25%. The remaining 23% was held by Lao State Holding Company. All power produced was to be sold to the Electricity Generating Authority of Thailand (EGAT) under a PPA. Tariff MOU was signed with EGAT in December 2006, the original PDA was signed in November 1997. The MOU was renegotiated in July 2008. In February 2007, the ADB announced a Cumulative Impact Assessment costing $0.98 million. Commissioning was expected for 2013, but reported for 2018 by the Laos government. The project also included 100 km tranmission line and connects to the Nabong substation and onwards to the Udon Thani substation, owned by EGAT. The concession has a duration of 27 years. The constructin permit and PPA were reported as under negotiation by the Laos government. Total project cost was estimated at $1.2 billion, funded half in Thai Baht and 50% in US dollars. IFC was considering a $100 million loan as of December 2011. The project received support from the ADB, exact amounts were still under negotiation but later announced at $465 million in November 2011. $350 million was to be lend by the ADB, under a risk participation agreement commercial financial firms were to assume up to $150 million of that ammount. Thai banks and other IFI's were to provide additional loans. The equity stake of the Lao government through LHSE was financed through a $115 million loan provided by the ADB. Estimated total costs of the project were $1 billion. Thailand's Kasikornbank also contributed to the debt financing, and provided THB 4 billion ($133 million) total to the Nam Ngum 3 hydropower plant, and the Nam Ngiep 1 hydropower plant together. Financial closure was not yet reached, in March 2012 it was reported the delay was caused by ongoing discussions on the interconnection and transmission issues. Total debt was valued at $800 million. FC was expected in June 2012. In 2013, ADB reported the project as canceled/terminated. The IFC however, did not report the same. As such, the project maintains recorded as under advanced development. Not all sponsors added - not in sponsor list yet. New sponsors forwarded for list updating. http://deals.pfie.com/pfideal.asp?dealnumber=2037724158 http://www.hydroworld.com/index/display/article-display/5194366051/articles/hrhrw/News-2/2011/11/asian-development.html http://www.mtnforum.org/sites/default/files/pub/6229.pdf http://www.ifc.org/ifcext/spiwebsite1.nsf/ProjectDisplay/SPI_DP30275 http://www.poweringprogress.org/download/News/news_criping/Lao%20Media/Vientiane%20Times/2008/august/VientianeTimes_14thAug2008_Xekhaman3_construction_costs_rise.pdf

Energy

World Bank Group

Project

Water Supply and Storage, Hydro, Power Generation (CCGT), Government, Manufacturing (Industrial), Commercial