Nam Theun 2 The World Bank Group. Ensuring sponsors’ and lenders’ involvement. A double objective: Satisfy sponsors’ requirements in order to secure equity financing under a limited recourse scheme Meet lenders’ requirements to attract in excess of USD 1 billion of debt financing
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The World Bank Group
…but some challenges to overcome
experienced sponsors have brought their development expertise
the project financing plan was clear and adequately structured from the outset, project agreements were detailed and based on international standards
these conditions, under proper management, contributed to a smooth and relatively brief financing phase (15 months)
Timely project development is possible with appropriate expertise
International practice to be followed to meet sponsors’ and lenders’ expectations
Lenders’ due diligence has departed from usual issues scrutinised in conventional thermal IPP projects.
To assess appropriate level of contractor’s liabilities
To assess certainty of take or pay structure
Proper risk allocation and contractual documentation allows financeability
evolving around MLAs and local
detailed finance plan and documentation proposed to the Lenders enabled a smooth due diligence phase
US$ 450 million
US$ 500 m.
THB 20,000 m.
(USD 500 m. equiv)
Bonding Debt Facilities
USD 131.5 m.
a natural hedge is provided against foreign exchange risk
ADB and MIGA provide pioneering dual-country PRI to accommodate the cross-border nature of the deal
Coface is fronting the insurance for EKN & GIEK under a reinsurance scheme
… but detailed preparation enabled timely financial close
Finance & Guarantees
The World Bank Group
Excluding Private Equity
Government of Laos
THB & non-WB
US$ Commercial Debt
Drawdown Request / Withdrawal Application
Flow of FundsUsing IDA Grant to finance E&S expenditures (as GOL Equity)……..