The types of fund described below are related to investment of Lao Holding State Enterprise (LHSE) in Nam Theun 2 Hydropower Project.
the fund provided to LHSE for financing it's equity in Nam Theun 2 Power Company Limited (NTPC) is a package of loans from the Government of Lao PDR (GOL).
The sources of fund that GOL use to re-lend to LHSE are a combination of loans and grants received from so-called GOL’s equity providers such as ADB, AFD, EIB and IDA.
The ADB Loan is from Ordinary Capital Resources (OCR). This Loan shall be used to cover “ADB Eligible Costs”, which have been defined as ADB Eligible Costs in the ADB OCR Facility Agreement between NTPC and ADB, and includes costs associated with works, goods and services to be financed under four designated subcontracts of the Head Construction Contract. The fund from AFD, EIB and IDA would have to meet their funding requirements on issues such as procurement policy, eligibility of goods and services, minimum drawdown amounts, etc.
The equity fund to LHSE has been fully a package of loans that LHSE is liable to payback in accordance with the subsidiary loans between the GOL represented by Ministry of Finance (MOF) and LHSE. No grants are provided to LHSE.