Project financing was required for the development of the 1,878 megawatt (MW) lignite-fired mine mouth power plant, comprising two separate power purchase agreement for each of the Electricity Generating Authority of Thailand and Electricité du Laos. In addition, two concessionary agreements were required to develop a lignite and limestone mine.
Also included in the financing were a 67 kilometres (km), 500 kilovolt (kV) overhead powerline to the Thai-Lao border, 5 km and 110 km of 115 kV double circuit powerlines to two Lao substations, two dams to serve as reservoirs for the plant’s water supply, as well as a variety of other supporting infrastructure to accommodate the development.
This was the first significant project delivered by primarily Chinese-led engineering, procurement and construction (EPC) contractors for each national electric company. Black & Veatch was hired as an LTA post-financial close and selection of EPC contractors. Taking advantage of loan disbursement milestones, Black & Veatch was able to steer contractors back to a more desired schedule and influence the selection of subcontractors on behalf of the lenders.
The project development was complete in 2016. Black & Veatch continues to advise the lenders on how to optimize returns over the life cycle of the power asset.