About Us News

US$ 30.94 million Line of Credit extended by India to Lao PDR – Construction of storage dam and development of irrigation system in Xayabury province – project awarded to Indian company M/s VKMCPL

Back | Print

On 20th May 2022, Department of Irrigation, Ministry of Agriculture and Forestry (DOI-MAF), Government of Lao PDR and M/s Vijay Kumar Mishra Construction Pvt Ltd (VKMCPL) as Engineering, Procurement and Construction (EPC) company signed contract for the construction of the Nam Sang storage dam and development of irrigation system in Kaenthao District, Xayabury Province. The contract signing ceremony was held in Vientiane between Mr. Bounkham Sydavong, Director General of the Irrigation Department and Mr Vikas Mishra, Vice President of EPC Company, in the presence of Mr. Thongphat Vongmany, Lao Vice Minister of Agriculture and Mr. Dinkar Asthana, the Ambassador of India to the Lao PDR.

The project is part of US $30.94 million concessional Line of Credit extended by India to Lao PDR in 2013. The project was awarded to M/s VKMCPL by the Exim Bank of India at a total cost of US$ 14.76 million for construction of a storage dam on River Nam Sang and development of canal irrigation system to irrigate around 1000 hectare of cultivable land in Xayabury Province.

There are three components of US$ 30.94 million Line of Credit project. The first part of the project i.e. conversion and commissioning of diesel pumps into electric pumps was completed in August 2019 at a cost of US $ 7.34 million by LuckyWPIL JV. With the contract signing ceremony on 20 May 2022, the second of the project i.e construction of a storage dam on Nam Sang river and development of canal irrigation system in Xayabury province, work is expected to start soon. The remaining balance amount of LoC i.e. US$ 5.75 million will be used for solar pumping system and Pico Hydro power generation plants in three provinces of Laos.

This LoC project is aimed to improve the living standard of farmers in Lao PDR by increasing farmer’s income and reducing the cost of agriculture crops.

Media Coverage:

1. News item and video on Lao National TV
2. Lao Pasaxon Newspaper media coverage
3. Vientiane Times article dated 24.5.2022
4. Contract signing ceremony pictures

****















News