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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.

On 26 April 2005 the following Agreements and Contract related to LHSE equity funding were executed:
Loan Agreement between GOL and ADB
Finance Contract between GOL and EIB
Grant Agreement between GOL and AFD
Development Grant Agreement between GOL and IDA
Project Agreements between NTPC and ADB, AFD, EIB, IDA
The Tripartite Agreements between GOL and ADB, AFD, EIB, IDA and NTPC was signed on 28 April 2005.
The Equity Contribution Agreement was signed on 03 May 2005.
The Subsidiary Loan Agreements between MOF and LHSE was executed on 05 May 2005.
In addition to Base Equity, the Contingent Equity of LHSE had been made available at Financial Close and placed into an Escrow Account in Singapore under the control of the Lenders. Other NTPC Shareholders did the same.
Information on fund flow and arrangements is described in another webpage called “Funding Arrangements”.