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Overview

China Eximbank provides $46 million preferential buyer's credit for Thanh Hoa Steel Billet Factory Construction Project

Commitments (Constant USD, 2023)$52,278,869
Commitment Year•2011Country of Activity•Viet NamDirect Recipient Country of Incorporation•Viet NamSector•Industry, Mining, ConstructionFlow Type•Loan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jan 1, 2011

Geospatial footprint

Map overview

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The purpose of the project was to construct a steel billet factory in Cao Ngoc commune, Ngoc Lac district, and Thanh Hóa Province with the capacity to produce 250,000 tons of steel per year. More detailed locational information can be found at https://www.openstreetmap.org/node/6819998046.

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Ultimate beneficial owners

At least 25% host country ownership

Funding agencies

State-owned Policy Banks

  • Export-Import Bank of China (China Eximbank)

Receiving agencies

Government Agencies

  • Government of Viet Nam

State-owned companies

  • Thanh Hoa Construction and Smelting Corporation

Implementing agencies

Government Agencies

  • Vietnam Ministry of Industry and Trade

Loan desecription

China Eximbank provides $46 million preferential buyer's credit for Thanh Hoa Steel Billet Factory Construction Project

Interest type•Unknown

Narrative

Full Description

Project narrative

On October 22, 2008, China Eximbank and the Government of Vietnam signed a preferential buyer’s credit (PBC) framework agreement . Then, on December 21, 2011, China Eximbank and the Vietnam Ministry of Finance signed a $46 million PBC agreement for the Thanh Hoa Steel Billet Factory Construction Project . The loan terms are unknown. This was one of the several agreements signed during Chinese President Xi Jinping's three-day visit (December 20-22, 2011) to Vietnam. The proceeds of the PBC were supposed to be on-lent to Thanh Hoa Construction and Smelting Corporation (Tổng công ty Xây dựng và luyện kim Thanh Hoá) which would then patrially finance a commercial contract with an unspecified Chinese contractor. The purpose of the project was to construct a steel billet factory in Cao Ngoc commune, Ngoc Lac district, and Thanh Hóa Province with the capacity to produce 250,000 tons of steel per year. This project encountered significant implementation problems. As of June 2013, the project was being rescoped and the Ministry of Finance of Vietnam was considering a different Chinese contractor.

Staff comments

1. This project is also known as the Cao Ngoc Steel Billet Factory Construction Project. The Chinese project title is 于越南清化钢铁厂项目. The Vietnamese project title is Thép Thanh Hóa or máy nhà máy sản xuất phôi thép tại tỉnh Thanh Hoá với công suất 250.000 tấn/năm or án Nhà máy thép Cao Ngọc or Nhà máy sản xuất phôi thép, công suất 250.000 tấn/năm tại xã Cao Ngọc, huyện Ngọc Lặc or Nhà máy phôi thép Thái Bình Dương. 2. The China Eximbank loan that supported this project is not included in the Overseas Development Finance Dataset that Boston University’s Global Development Policy Center published in December 2020.