Project ID: 35269

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

Commitment amount

$ 56574488.34169876

Adjusted commitment amount

$ 56574488.34

Constant 2021 USD

Summary

Funding agency [Type]

Export-Import Bank of China (China Eximbank) [State-owned Policy Bank]

Recipient

Vietnam

Sector

Industry, mining, construction (Code: 320)

Flow type

Loan

Level of public liability

Central government debt

Infrastructure

Yes

Category

Intent

Mixed (The next section lists the possible statuses.)

Commercial

Development

Representational

Mixed

Financial Flow Classification

OOF-like (The next section lists the possible statuses.)

Official Development Assistance

Other Official Flows

Vague (Official Finance)

Flows categorized based on OECD-DAC guidelines

Project lifecycle

Status

Pipeline: Commitment (The next section lists the possible statuses.)

Pledge

Commitment

Implementation

Completion

Suspended

Cancelled

Milestones

Commitment

2011-01-01

Geography

Description

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.

Additional details

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.

Number of official sources

4

Number of total sources

13

Download the dataset

Details

Cofinanced

No

Direct receiving agencies [Type]

Government of Viet Nam [Government Agency]

Indirect receiving agencies [Type]

Thanh Hoa Construction and Smelting Corporation [State-owned Company]

Implementing agencies [Type]

Vietnam Ministry of Industry and Trade [Government Agency]

Loan Details

Bilateral loan

Export buyer's credit

Investment project loan

Preferential Buyer's Credit