China Eximbank provides RMB 3.53 billion overseas investment loan for 246MW Stung Tatay Hydroelectric Power Plant Project

In 2008, China National Heavy Machinery Corporation (CHMC) and the Cambodian Government signed a build-operate and transfer (BOT) agreement regarding the 246MW Stung Tatay Hydroelectric Power Plant Project. The 42 year agreement includes a 5-year construction period (1 year would be for preparations and 4 years for the construction) and a 37-year operating period. Then, on November 17, 2008, China Export & Credit Insurance Corporation (Sinosure) issued a letter of interest, which conveyed its willingness to provide insurance for the $540 million project. Two months later, on January 12, 2009, China Eximbank issued a letter of interest, which conveyed its willingness to provide a loan for the 246MW Stung Tatay Hydroelectric Power Plant Project.On June 9, 2010, China Eximbank and Cambodia Tatay Hydropower Limited (CTHL or 柬埔寨達岱水電有限公司) — a special purpose vehicle and project company that is wholly owned by China National Heavy Machinery Corporation (CHMC) — signed an overseas investment loan (境外投资贷款) agreement worth RMB 3,533,622,000 for the 246MW Stung Tatay Hydroelectric Power Plant Project. The loan was issued in three tranches worth RMB 1,349,831,300, RMB 1,195,191,300, and RMB 988,599,400 yuan, respectively. The borrowing terms of the loan are unknown.The parties also signed a mortgage agreement, stipulating that CTHL would provide a mortgage guarantee for all its properties (tangible or intangible) and all rights (existing or in the future) to China Eximbank, and Sinosure provided insurance for the overseas investment loan. The proceeds of the loan were to be used by the borrower to finance a commercial (EPC) contract that it signed with Gezhouba Group No.1 Engineering Co.,Ltd. (葛洲坝集团第一工程有限公司) on February 10, 2010.The purpose of the project was to construct a hydroelectric power plant with a new reservoir (whose water surface area is 16,000,000m2 with a power density of 15.375W/m2) downstream of the Tatay River in Koh Kong Province and thereby generate power from clean renewable hydropower in Koh Kong Province and contribute to the sustainability of the Phnom Penh Power Grid. It involved the installation of 3 sets of turbine and generators (3×82MW), which amount to a total capacity of 246MW and a total net electricity supply of 857,300MWh (to be sold to the Phnom Penh Power Grid). It relied upon technology manufactured by Zhejiang Fuchunjiang Hydropower Equipments Co., Ltd in China.The project was a diversion type hydropower station. Two dams were constructed to form a new reservoir. The concrete face rock-fill dam was located on the main stream of Tatay river and the auxiliary dam was located in Stung Kep River which is a tributary of the Tatay River. The three-opening bank spillway was located on the left bank of the Stung Kep River. The headrace power system and the river-side ground powerhouse were located at the left bank of the Tatay River; access roads to the dam crest and project site were provided on the left bank. The maximum height of the main dam located on the main stream was 110 meters, and the maximum height of the dam located on the Stung Kep River was 77 meters. A new reservoir was formed with the water surface of 16,000,000m2 and the power density is 15.375W/m2 . The designed net water head for the power generation was 188 meters. The power generated by the plant was to be routed to the 230kV O-Saom Substation though a 65km 230kV transmission line to Phnom Penh power grid.The project is sited in Thmabang District within Koh Kong (Khétt Kaôh Kông) Province, which has central geographical coordinates at powerhouse: 103°10′11″E, 11°35′23″N; dam on Tatay River: 103°15′44″E, 11°37′46″N (i.e. powerhouse: 103.1697°E, 11.5897°N; dam on Tatay River: 103.2622°E, 11.6294°N). The dam site of the proposed project is 1.4 km upstream of the junction between Tatay River and its tributary named Stung Kep and 40km away from Koh Kong City, the capital of Koh Kong Province.A formal groundbreaking ceremony took place on May 21, 2009; however, construction did not begin until March 29, 2010. Then, on November 5, 2010, Mr. Li Ruogu, President of China Eximbank conducted a project site inspection. The dam was closed for impoundment on November 16, 2013. The originally expected project completion date was November 30, 2013; however, the dam did not begin operations and connect to the grid until August 13, 2014. CHMC Board Chairman and President Mr. Lu Wenjun, and Mr. Zhu Xu attended the grid connection and commissioning ceremony. A project acceptance and power generation ceremony took place on December 23, 2015. Then, in November 2019, China Eximbank conducted an on-site, post-loan inspection.Under terms of a Power Purchase Agreement (PPA), CTHL sells the electricity generated by the power plant to Electricite du Cambodge. Tariff: US$ 0.0745/KWH, generates $12 million/yr tax. All electric power generated by the hydropower station is sent to the Phnom Penh-Battambang transmission and distribution lines.

Additional details

This project is also known as the 3 x 82 MW Stung Tatay Hydroelectric Project. The Chinese project title is 柬埔寨达岱河水电站 or 司承建的柬埔寨达岱河水电 or 柬埔寨达岱水电站BOT项目 or 柬埔寨达岱水电站项目 or 供的柬埔寨达岱 BOT 水电站项目.In the Overseas Development Finance Dataset that Boston University’s Global Development Policy Center published in December 2020, it identified the Government of Cambodia as the borrower of the China Eximbank loan that supported this project; however, multiple official sources identify CTHL as the borrower.China National Heavy Machinery Corporation (CHMC) is a subsidiary of Sinomach.

Number of official sources

25

Number of unofficial sources

16