Narrative
Full Description
Project narrative
On September 7, 2009, China Eximbank and the Vietnam Ministry of Finance signed preferential buyer's credit (PBC) loan framework agreement for the the 1244MW Vinh Tan 2 Coal-Fired Power Plant Construction Project. Then, on December 17, 2010, China Eximbank and Vietnam Electricity (EVN) — a state-owned power company — signed three loan agreements for this project: (1) RMB 600 million government concessional loan (GCL) agreement with a 17-year maturity (captured via Record ID#65949). This loan matures in 2027. (2) $300 million preferential buyer’s credit (PBC) agreement with a 17-year maturity (captured via Record ID#35236). This loan matures in 2027. (3) $695 million buyer’s credit loan (BCL) agreement with an 18-year maturity (captured via Record ID#65950). This loan matures in 2028. The proceeds of these loans were on-lent by EVN — via 3 separate loans: 04/HĐCVL/EXIMBANK-EVN-G3 (KV 01), 04/HĐCVL/EXIMBANK-EVN-G3 (KV 02), and 04/HĐCVL/EXIMBANK-EVN-G3 (KV 03) — to Power Generation Corporation 3 (EVNGENCO 3), a wholly owned subsidiary of EVN. The proceeds from these three loans were to be used by the ultimate borrower to cover 85% of the cost ($1.08 billion) of a $1.265 billion EPC contract signed on October 23, 2009 between EVN and Shanghai Electric Group Company Limited. EVN provided counterpart financing for the remaining 15%. The purpose of the project was to construct a 1244MW coal-fired power plant — with two, 622MW power generation units (Unit 1 and Unit 2) — in Bắc Lũng commune, Lục Nam district, and Bắc Giang province. Shanghai Electric Group Company Limited was the EPC contractor responsible for implementation. Power Construction Consulting Joint Stock Company 2 (PECC2) was the contractor responsible for construction supervision. Construction began on August 8, 2010. Units 1 and 2 were put into operation of commercial operation on January 30, 2015 and March 21, 2015, respectively. A formal project completion ceremony took place on November 7, 2020.
Staff comments
1. This project is also known as the 2x622MW Vinh Tan 2 Thermal Power Plant Project, the Vinh Tan 2 Coal-Fired Thermal Power Plant Project, or the Vinh Tan II Coal-Fired Thermal Power Plant Project. The Chinese project title is 署越南永新火电项目 or 越南永新燃煤电厂二期项目. The Vietnamese project title is Nhà máy Nhiệt điện Vĩnh Tân 2 or Dự án Nhà máy nhiệt điện Vĩnh Tân 2 or NMNĐ Vĩnh Tân 2. 2. Neither the RMB 600 million China Eximbank GCL nor the $695 million China Eximbank BCL that supported this project are included in the Overseas Development Finance Dataset that Boston University’s Global Development Policy Center published in December 2020.