VLP Dry Port (IFC-45865)

Regions
  • East Asia and Pacific
Geographic location where the impacts of the investment may be experienced.
Countries
  • Laos
Geographic location where the impacts of the investment may be experienced.
Specific Location
Hadxayfong and Saysettha Districts in Vientiane, Laos
Whenever identified, the area within countries where the impacts of the investment may be experienced. Exact locations of projects may not be identified fully or at all in project documents. Please review updated project documents and community-led assessments.
Financial Institutions
  • International Finance Corporation (IFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
B
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
May 10, 2022
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
THANALENG DRY PORT SOLE CO.,LTD
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Infrastructure
  • Transport
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 27.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Loan Amount (USD)
$ 27.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Project Cost (USD)
$ 91.50 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Other Related Projects
Primary Source

Original disclosure @ IFC website

Updated in EWS Jul 29, 2024

Disclosed by Bank Mar 31, 2022

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

According to the bank's website, "the proposed investment is for financing the Thanaleng dry port (‘dry port’) being developed by Thanaleng Dry Port Sole Co., Ltd (TDP or the “Company”) a Special Purpose Vehicle (SPV) created by Vientiane Logistics Park Company Limited (VLP) for the development of the dry port.

The financing includes: (a) IFC's own account investment of up to US$ 27 million including an A Loan of up to US$ 21 million and a non-convertible, subordinated C- Loan of US$ 6 million, (b) IFC B Loans / Parallel Loans of up to US$ 21 million; and c) subordinated debt of up to US$ 21 million from the International Development Association (“IDA”) Private Sector Window (“PSW”) Blended Finance Facility (BFF) to finance the construction of dry port. 

The dry port is strategically located within a distance of 1 km from the Laos-Thailand friendship bridge which is the main cross-border trade point between Laos and Thailand; and next to the terminus of the upcoming Kunming (China) – Vientiane (Laos) railway line. The access road to the dry port from the existing Laos-Thailand Friendship Bridge is being constructed as part of the dry port phase 1 development. The access road construction will be included in the financing. The dry port is in advanced stages of construction with the construction expected to be completed by Second Quarter 2022. At construction peak, there were nine contractors with Sinohydro Bureau 10 (Lao) Co., Ltd (SHC) as main contractor responsible for the construction of the main civil and infrastructure works and building works for the dry port. At the time of the IFC’s appraisal, several contractors had already demobilized."

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

As stated by the IFC, the total cost of the Project is estimated at US$ 91.5 million (including transaction costs). The total external financing includes: (a) IFC's own account investment of up to US$ 27 million including an A Loan of up to US$ 21 million and a non-convertible, subordinated C- Loan of US$ 6 million, (b) IFC B Loans / Parallel Loans of up to US$ 21 million; and c) subordinated debt of up to US$ 21 million from the International Development Association (“IDA”) Private Sector Window (“PSW”) Blended Finance Facility (BFF).

Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

As stated by the IFC, the Project Company is a wholly owned subsidiary of VLP which is 99 percent owned by the Sponsor and 1 percent owned by PTL Holding Company Limited, an affiliate of the Sponsor.

Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
- - - - Sinohydro Corporation Contractor Construction
PTL Holding Company Limited (Laos) Parent Company Industry and Trade owns Vientiane Logistics Park Co. Ltd. Client Infrastructure

Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

Petroleum Trading Lao Public Company
Mr. Mark Luvant
Project Finance Director
+856 (0) 20-5555-4034
mark.lv@petrotradelaos.com
Kamphengmeuang Rd Phonthan Village, Saysettha District Vientiane Capital Lao PDR
www.petrotradelaos.com

 

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ACCOUNTABILITY MECHANISM OF IFC/MIGA

The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org

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