Laos gets $72.5M loan for hydropower projects

India will accord a $72.55 million loan to Laos for two hydro power projects.

This was announced by Indian President Pratibha Devisingh Patil during a five-day state visit to Laos yesterday in response to an invitation from her Lao counterpart Mr Choummaly Sayasone.

The new commitment for $ 72.55 million was made for a 230 KV Double Circuit Transmission Line from Nabong to Thabok with sub stations ($ 34.68 million), and the 15 MW Nam Boun 2 hydro power project ($ 37.86 million). In addition, Laos sought $30 million more credit for the development of irrigation schemes in four provinces. India has spent or committed a total credit line of $162 million to Laos.

The loan agreement was recently signed in Vientiane by Exim Bank Executive Director Prabhakar Dalal and Lao Foreign Minister Somdy Donangly at a meeting of the India-Laos Business Forum.

Patil also called upon Indian businessmen to avail of the opportunities provided by the new Laos investment environment and urged private investors to enter the hydropower, mining, construction, roads, railways and agricultural sectors in Laos.

Representatives from 25 Indian companies, including from CII, FICCI and ASSOCHAM, the Lao National Chamber of Commerce and Industry, and the Indian Chamber of Commerce in Laos participated in the meeting.

The two leaders also performed a “virtual” inauguration of the 115 KV Paksong Bangyo double circuit transmission line located in Champassak province, for a length of 53 km constructed by Angelique International Ltd, a New Delhi-based engineering and construction company. India provided a $ 10 million line of credit for this in 2008. The company has also constructed the Namsong Hydro Project.