Xe-Pian Xe-Namnoy HPP

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In February 2014, Xe Pian Xe Namnoy hydropower project reached financial closure by securing debt financing of $736.5 million at 20 year maturity. This 410MW HPP greenfield BOT project was to be located on the Bolaven plateau, about 500km south-east of the Lao capital Vientiane, in Attapue and Champasak provinces. Xe Pian Xe Namnoy Power Co Ltd is the SPV of the project and the sponsors included SK Engineering & Construction (26%), Korea Western Power Co (25%), Ratchaburi (25%) and Lao Holding State Enterprise (24%) making an investment of $306 million. The total value of this project was estimated at $1,042.5 million and the debt/equity ratio was 71:29. The $736.5 loan was funded by Krung Thai Bank, Bank of Ayudhya, Export-Import Bank of Thailand, and Thanachart Group. Both the Asian Development Bank and Kexim had looked at the project, but when neither were able to complete their environmental assessments in time for construction to start during the dry weather period, the sponsors opted to proceed with just the Thai banks. The project involved damming the Xekong river, a tributary of the Mekong, and its resettlement and environmental risk mitigation practices attracted criticism from non-governmental organizations. Concession period is not available. Originally supposed to involve ADB (US$350 million) and KEXIM (US$73 million)