On November 10th in Slovakia it took place a signature ceremony of memorandum of understanding for loan capital donation to a project of Building an oversea store and oil pipeline from Hon La port, Quang Binh, Vietnam to Khammouane province, Laos between Export-Import bank of the Slovak Republic (Eximbanka SR) and Bank for Investment and Development of Vietnam (BIDV).

The project of oil pipeline from Hon La port in Quang Binh province to Khammouane province, Laos is Laos’s 100% capital from Laotian government and enterprises. PetroLao is assigned to be a key point by the Laotian government to carry out the project.

​On the basis of Decision 109/QĐ issued on October 02nd 2014 by the Prime Minister of the Laotian government that assigns PetroLao to be an investor of the project “Building an oversea store and oil pipeline from Vietnam to Laos, PetroLao signed a framework agreement with AVIL and Energy&Commodities (EC) about cooperation in development goals, donation and implementation of the project. It wants to find collaborators who are capable of arranging capital resources in need for certain implementation of the project. On October 22nd 2014, PetroLao and Energy&Commodities (EC) signed a contract of exploration consultation and developing investment report of the project in Vietnam.

In Decision 119/QĐ issued on October 31st 2014, the Laotian government appointed AVIL/BIDV to be a firm of consultant on implementation of the project with major tasks including: consultancy on legal procedures of project investment in Vietnam, consultancy on process of developing project investment report, and arrangement, introduction, selection of reputable and capable financial institutions from Europe to participate in the project. As a consultancy firm, AVIL/BIDV agreed with Export-Import bank of Slovakian government who is guaranteed by the Slovakian government to ensure commitment to invest the project. Accordingly, Eximbanka SR will be a key point of credit capital arrangement of reputable financial institutions from Europe for BIDV to borrow, then BIDV loans the capital to the Laotian government for implementation of the project (bridge loan).

The signature of memorandum of understanding of “A project of building a oversea store and oil pipeline from Hon La port, Quang Binh province, Vietnam to Khammouane province, Laos” between Export-Import bank of the Slovak Republic (Eximbanka SR) and Bank for Investment and development of Vietnam (BIDV) aims to agree on conditions and the project-related regulations, cooperation in financial resources arrangement for the project in many different structure and at certain limitation of supporting process of capital arrangement.

Eximbanka SR is an Export-Import bank of the Slovakian government, that work on bank and insurance sectors with a main goal of supporting and providing export promotion services to Slovakian manufacturers and exporters in relation to the European Union, OECD countries and other developing countries.

For this project, Eximbanka SR is a key point of capital attraction and arrangement in cooperation with European financial institutions for the project’s credit resource that may be up to 85% of the project investment total. BIDV is a key point of capital arrangement for a part of left counterpart fund (15%).

Eximbanka SR (i) will make its efforts to spur and support credit arrangement for the project and (ii) will be an export credit institution who officially insures Slovakian’s components of the project.

The project of building a oversea store and oil pipeline from Hon La port (Quang Binh) to Khammouane province (Laos) is one of high priority projects, that is invested by the Laotian government with form of general contractor EPC.

The project plans to locate in land No. 1A-3 and 6A-2 on a planning scheme map at rate of 1/2000 of industrial zone Hon La trading port (Quang Binh) on land resource of 37,45 ha including components of (i) A oversea store in Hon La port with capacity of about 300,000 – 500,000 m3, (ii) A soft habour bridge system (an area of load transfer and anchorage buoy) for ships of 50,000 tons capacity  docking, (iii) A pipeline route that is set from Hon La port (Quang Binh province, Vietnam) to Khammouane province, Laos includes 02 major pipelines and 01 backup pipeline with total of 290 km length, in which the part that goes through Vietnam is 138 km and 152 km in Laos, (iv) A system of 04 pump houses and transit stores, and (v) A termination store in Khammouane: a system of the store with capacity of 100.000- 200.000m3. Detailed figures of the project will be identified in an approved feasibility report of the project (FS).

Total of the project planned investment, capital structure is about USD 300-500 million. The project plans to complete and operate at the end of 2017 or the beginning of 2018.

For more information, please contact:

Ms.  Pham Thi Quynh Chi – Financial Institution Division – Head office of BIDV

Tel: +84 905.885.688.

Ms Ha Thi Thanh Binh – General Secretary of Association of Vietnamese Investors in Laos (AVIL).

Tel: + 84 903.292.440.