Brussels, 02/05/2005 (Agence Europe) - The European Investment Bank (EIB) will lend USD 55 million to the Lao People's Democratic Republic (PDR) for the development, construction and operation of a 1,070 MW hydroelectric project on the Nam Theun River. EIB loan will have a 30-year term and will be used by the Government of Laos to make its equity contribution in the Nam Theun 2 Power Company Ltd (NTPC) in charge of the project and will contribute to the regional integration of Laos, one of the poorest countries in the South East Asia. The export revenues will help to reduce Laos' dependency on international development aid. Some 95% of the electricity produced will be exported to Thailand. The export revenues will help to improve Laos' fiscal prospects and external debt servicing capacity. The project has been designed with the close involvement of the World Bank, the Asian Development Bank, the European Investment Bank, the Nordic investment Bank, the Agence Française de Développement, and COFACE.