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Type of fund

TYPES OF FUND
PROVIDED TO LAO HOLDING STATE ENTERPRISE

Nam Theun 2 Power Company Limited
       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 its 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:
1. Loan Agreement between GOL and ADB
2. Finance Contract between GOL and EIB
3. Grant Agreement between GOL and AFD
4. Development Grant Agreement between GOL and IDA
5. Project Agreements between NTPC and ADB, AFD, EIB, IDA
6. The Tripartite Agreements between GOL and ADB, AFD, EIB, IDA and NTPC was signed on 28 April 2005.
7. The Equity Contribution Agreement was signed on 03 May 2005.
8. The Subsidiary Loan Agreements between MOF and LHSE was executed on 05 May 2005.
9. 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”.

Hongsa Minemouth Power Project
        The Base-Equity contribution requirement in this project by LHSE is US$185. The source of fund are from Thai Banks (Krung Thai Bank PCL (KTB) and Government Savings Bank of Thailand (GSB)) in the total amount of US$220 Million which comes from KTB US$150 Million and US$70 Million from GSB.
On 31 May 2011, LHSE signed the Subsidairy Loan Agreement with the GoL represented by the Ministry of Finance in connection with the Facilities Agreement with Krung Thai Bank Pcl (KTB) nad the Govenrment Savings Bank (in corporated in Thailand). The GoL has agreed to on-lend the equivalent of USD 150,000,000 under the KTB Facilities Agreement and THB 2,380,000,000 under the GSB Facilities Agreement.

Xepian Xenamnoy Hydropower Project
        On 27 October 2015, LHSE signed the Subsidiary Loan Agreement with the GoL in connection with the Export-Import bank of Korea (Government Agency for the EDCF). GoL has agreed to on-lend up to an amount of USD 80,800,000 and another source of fund is from the Facility Agreement between MOF and KTB in the amount of USD 100,640,000. The loan from EDCF is the best condition ever for LHSE with the low Interest Rate at 0.025% per annam.

Nam Ngiep 1 Hydropower Project
        In the year 2014, LHSE signed the Subsidairy Loan Agreement with the GoL in connection with the Loan Agreement with Japan Bank for International Cooperation (JBIC), Export-Import Bank of Thailand and Bangkok Bank Pcl in the amount as of USD 103,500,000.

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