VLP Dry Port

completed

The proposed investment is for financing the Thanaleng dry port (‘dry port’) being developed by Thanaleng Dry Port Sole Co., Ltd (TDP or the “Company”) a Special Purpose Vehicle (SPV) created by Vientiane Logistics Park Company Limited (VLP) for the development of the dry port (the “Project”). The financing includes: (a) IFC's own account investment of up to US$ 27 million including an A Loan of up to US$ 21 million and a non-convertible, subordinated C- Loan of US$ 6 million, (b) IFC B Loans / Parallel Loans of up to US$ 21 million; and c) subordinated debt of up to US$ 21 million from the International Development Association (“IDA”) Private Sector Window (“PSW”) Blended Finance Facility (BFF) to finance the construction of dry port.  The dry port is strategically located within a distance of 1 km from the Laos-Thailand friendship bridge which is the main cross-border trade point between Laos and Thailand; and next to the terminus of the upcoming Kunming (China) – Vientiane (Laos) railway line. The access road to the dry port from the existing Laos-Thailand Friendship Bridge is being constructed as part of the dry port phase 1 development. The access road construction will be included in the financing. The dry port is in advanced stages of construction with the construction expected to be completed by Second Quarter 2022. At construction peak, there were nine contractors with Sinohydro Bureau 10 (Lao) Co., Ltd (SHC) as main contractor responsible for the construction of the main civil and infrastructure works and building works for the dry port. At the time of the IFC’s appraisal, several contractors had already demobilized.