Theun Hinboun Hydro Power Plant I

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The 210-MW (2x105-MW), $315.5-MW Nam Hinboun Hydro Power Plant I is being developed through a 30-year BOT by Theun-Hinboun Power Co. Ltd. which comprises Electricite du Laos (60%), GMS Power of Thailand (20%) (formerly MDX Power), and Nordic Hydropower (20%)--a consortium Statkraft, Vattenfall, and Elkraft, Nordic Power Invest AB (a wholly owned subsidiary of Vatenfall). The project, which represents the first IPP in Laos, is under construction may be the first of a number of privately-funded hydro power project on the Nam Theun River. Nordic Hydro Power will construct, operate and maintain the project. A 25-year PPA was signed with the Electricity Generating Authority of Thailand (EGAT) to export power output from the project. The PPA specifies that half the payments are in dollars and the other half in Thai baht and calls for 3% annual increases in tariffs. The project also includes the development of a 138-km transmission line to Thakhek on the Thailand-Laos border. Electricite du Laos is receiving financing from the Asian Development Bank and is providing a small grant toward project development. Financial closure took place in October 1996 and the project was expected to become operational during 1998. The project was refinanced in April 2002, the financial adviser was BNP Paribas who replaced Citibank, the adviser on the first loan. It includes a Bt3bn 10-year loan arranged by Bangkok Bank with a fixed interest rate of 8% for the first 3 years and then a 125bp over the minimum lending rate. Participants were Bank of Ayudhya, Bank Thai, Ekachart Finance, Siam City Bank, Siam Commercial Bank and Thai Military Bank. Ex-Im Bank of Thailand also contributed a US$30m loan. In addition to the original plant, the expansion project would involve a 220MW plant, which is an extension to the existing plant, and a second plant comprising two 30MW units served by a new dam on the Nam Gnouang, with expepected operational schedule of March 2012. In October 2008, the expansion project reached closed finance, securing US dollar and Thai Baht syndicated loans totaling up to US$595 million at a signing ceremony held in Bangkok.