China Eximbank provides $178.5 million preferential buyer's credit for 330MW Uông Bí Coal-Fired Power Plant Phase II Expansion Project

Project narrative

On October 22, 2008, the Chinese Government and the Government of Vietnam signed a preferential buyer’s credit (PBC) framework agreement. Then, on November 12, 2009, China Eximbank and the Vietnam Ministry of Finance signed a $178.5 million preferential buyer's credit (PBC) agreement for the 330MW Uông Bí Coal-Fired Power Plant Phase II Expansion Project. The borrowing terms of the loan are unknown. The proceeds of the loan were to be used by the borrower to partially finance a $220 million EPC contract signed on April 11, 2008 between Vietnam Electricity (EVN) — a state-owned enterprise — and China Chengda Engineering Corporation. The purpose of the project was to add 330MW of power generation capacity to the Uông Bí Coal-Fired Power Plant in Uông Bí township and Quảng Ninh province. China Chengda Engineering Corporation was the EPC contractor responsible for implementation. The EPC contract went into effect on May 4, 2008. A formal groundbreaking ceremony took place on May 23, 2008 and the project was expected to reach complete within 36 months. By the end of December 2008, the project had achieved a 19.8% completion rate. The project was ultimately handed over to the local authorities on May 22, 2013. The project supplemented Vietnam's national power grid with 1,980 billion kWh / year.