Thai construction firm CH. Karnchang PLC has approved a loan totaling more than US$531.7 million to subsidiary Xayaburi Power Co. Ltd. for the development of Laos' 1,285-MW Xayaburi hydropower plant.
The financing, approved during a CK board meeting earlier this week, will be used "to pay for the increased construction works" of the project, "due to the Government of the Lao PDR's amendment to the scope of construction work."
HydroWorld.com reported in November that the $3.5 billion project was 60% complete, with additional financing coming form a consortium of Thai banks.
Power generated by the run-of-river will be sold under a 31-year power purchase agreement to the Electricity Generating Company of Thailand and Electricite du Laos.
Xayaburi is the first of 11 hydroelectric projects proposed for the Lower Mekong River as part of Laos' plan to become the "battery of the region."
Thailand is the largest purchaser of Laotian energy, though the country also exports to Vietnam and Cambodia under terms of the Association of Southeast Asian Nations (ASEAN).
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