Narrative
Full Description
Project narrative
On May 8, 2006, Bank of China and Vietnam Construction and Import-Export Joint Stock Corporation (Vinaconex) signed a $4,006,819.98 loan agreement for the Yen Binh Cement Plant Construction Project (captured via Record ID#92181). The loan carried the following borrowing terms: a 7-year maturity, a 2-year grace period, and an interest rate of LIBOR plus a 1.7% margin. The loan’s first repayment date was December 1, 2008 and its last repayment date was December 1, 2013. The Ministry of Finance of Vietnam provided a sovereign guarantee in support of the loan. On September 27, 2006, China National Heavy Machinery Corporation and Vietnam Construction and Import-Export Joint Stock Corporation (Vinaconex) signed a $19,901,766.70 supplier’s credit (loan) agreement for the Yen Binh Cement Plant Construction Project (captured via Record ID#63653). The supplier’s credit carried the following borrowing terms: a 3.78% interest rate, a 4.3-year grace period (4 years, 3 months, and 19 days), and an 11.8-year maturity (with a repayment period of 7.5 years). The Ministry of Finance of Vietnam provided a sovereign guarantee in support of the supplier’s credit. The purpose of the project was to construct the Yen Binh cement plant in the North East of Group 5 (Dong Ly), Yen Binh town, Yen Binh district, and Yen Bai province. The project area consisted of 39 hectares for the main cement plant, 5 hectares for cement worker residences, 120 hectares for the Dong Son limestone mine, and 45 hectares for the Hop Minh and Gioi Phien clay mine: 45 hectares. The planned capacity of the cement plant was 750,000 tons of clinker per year (equivalent to 910,000 tons of PCB40 cement per year), including 819,000 tons of PCB40 packed cement and 91,000 tons of PCB40 bulk cement. China National Heavy Machinery Corporation was the EPC contractor responsible for implementation. Project implementation commenced on or around February 28, 2006 and concluded on December 28, 2007.
Staff comments
1. The Chinese project title is 越南安平水泥厂. The Vietnamese project title is án Xi măng Yên Bình or XM Yên Bình or Nhà máy xi măng Vinaconex Yên Bình. 2. Vietnam Construction and Import-Export Joint Stock Corporation's Vietnamese name is Tổng Công ty Cổ phần Xuất nhập khẩu và Xây dựng Việt Nam or Tổng cty XNK Xây dựng. It is a state-owned enterprise (with 57.79% of charter capital held by the State). 3. One source suggests that the loan agreement was signed on January 20, 2006 rather than September 27, 2006. This issue merits further investigation. 4. One source suggests that the loan carried a 7.5 year maturity and a 2.5 year grace period (with the first day of repayment falling on December 1, 2008 and the last date of repayment falling on December 1, 2013). This issue merits further investigation. 5. Construction reportedly commenced 22 months before December 28, 2007, so AidData has coded the project implementation start date as February 28, 2006 for the time being.