08 Dec, 2011
Laos to get South Korean loa for hydro power
SEOUL, Dec 7 (AsiaPulse) - South Korea has signed a tentative
deal with Laos to provide low-interest loans for the
construction of a hydroelectric power plant in the Southeast
Asian country, the finance ministry said Wednesday.
Under the memorandum of understanding signed in Vientiane,
the capital of Laos, South Korea will provide US$70 million in
loans for the power plant project, which will be located along
the Mekong River, the ministry said.
It said the loan will be offered under Korea's Economic
Development Cooperation Fund (EDCF) aimed at helping
less-developed nations through low interest loans.
SK E&C Co., a South Korean builder, and Korea Western Power
are joining the project, with the former to be in charge of
designing and construction, and the latter to take up operation
This is the first large joint public-private partnership
project for developing countries in which the Seoul government
joins through EDCF loans along with Korean companies, the
ministry in charge of the country's economic policies said.
It said the hydroelectric power plant, if completed, will
supply electricity to more than 400,000 households every year.
A total of $1 billion will be invested in the construction of