Chinese Government provides $15.3 million interest-free loan -- via ETCA -- for Phase 1 of Thai Nguyen Steel Company Expansion Project (Linked to Record ID#63649)

Project narrative

On June 12, 2000, China’s Deputy Minister of Foreign Trade and Economic Cooperation and Vietnam’s Ambassador to China signed an Economic and Technical Cooperation Agreement (ETCA), which committed approximately $55.254 million of funding for multiple projects. One of subsidiary projects supported through the ETCA was Phase 1 of the Thai Nguyen Steel Company Expansion Project. The Chinese Government issued an interest-free loan worth approximately $15,316,000 for this project. The borrowing terms of the loan were as follows: 0% interest rate, 20-year maturity, and 10-year grace period. The Government of Vietnam on-lent the proceeds fo the loan to the state-owned Thai Nguyen Iron and Steel Company (TISCO or Công ty Gang thép Thái Nguyên). The purpose of the project was to expand and renovate a steel mill in Cam Gia Ward within Thai Nguyen City and Thai Binh Province with the capacity to produce 300,000 tons of steel a year. The mill uses materials such as iron ore, bitumous coal, and waste steel to produce new steel. It was originally built in the 1960s with assistance, equipment and technology from the Chinese Government. On September 9, 2000, Prime Minister Phan Van Khai approved a feasibility study report for Phase 1 of the Thai Nguyen Steel Company Expansion Project. A Phase 1 inauguration ceremony took place on November 21, 2001. Construction began on November 28, 2000. The precise implementation end date of this project is unknown. However, AidData assumes that the project was ultimately completed because a second phase of the project was funded (see Record ID#63649).