SEOUL, KOREA – Korea EximBank, in partnership with the Asian Development Bank, will provide US$420 million to a project to build a hydroelectric power plant in Laos. This is the first instance in which the Economic Development Cooperation Fund is combined with project financing loans. Under the aegis of the government program, major Korean companies such as SK Engineering & Construction and Korea Western Power will participate as contractors.

 

Of the $420-million fund to be disbursed to the Sapien-Senamnoi hydroelectric project, Korea EximBank will first pay $73 million to the Laotian government. The bank will also support the project in cooperation with the Asian Development Bank by mobilizing a $350-million project financing fund in the form of a special-purpose corporation.

 

In the special-purpose corporation, SK E&C (26%), Korea Western Power (25%). and the Laotian government (24%) will participate as stakeholders.

 

The 32-year project calls for building a 410-megawatt hydroelectric power plant in a Mekong tributary and supplying electric power to Thailand and Laos. The total cost of construction is estimated at $1 billion.