CDB provides $55 million loan for 45MW Bac Me Hydropower Plant Project

In 2015, China Development Bank (CDB) Guangxi Branch issued a $55 million loan to Vietnam Trading Engineering Construction Joint Stock Corporation— a Vietnamese state-owned enterprise— for the 45MW Bac Me Hydropower Plant Project. The loan's borrowing terms are unknown. However, it is known that the borrower was to use the proceeds of the loan to partially cover the VND 1,400,000,000,000 ($61.6 million) total project cost. The purpose of the project was to construct a 45MW hydroelectric power plant — with two, 22.5MW power generation units (Unit 1 and Unit 2) — on Gam river in Yen Phong and Phu Nam communes, Bac Me district, and Ha Giang province. Song Da 5 Joint Stock Company and Zhefu Hydropower International Engineering Corporation Limited were the contractors responsible for implementation. The Government of Vietnam approved the project’s environmental impact assessment (EIA) on August 7, 2012. Construction commenced on November 23, 2014. On February 9, 2015, Vietnam Trading Engineering Construction Joint Stock Corporation and Zhefu Hydropower International Engineering Corporation Limited signed a $18,527,960.60 mechanical and electrical equipment supply, installation, and technical service contract. Then, on September 28, 2017, the People's Committee of Ha Giang province alleged that the power plant had violated local regulations and reservoir-bed accumulation and water discharge had triggered landslides along the river banks of the Ha Giang-Cao Bang Section of Highway 34. Another landslide was triggered by the power plant on December 13, 2017. The project was ultimately completed on April 2, 2020.

Additional details

1. This project is also known as the 45MW Bac Me Hydropower Plant Project or the VTEC Bac Me Hydropower Plant Project. The Vietnamese project title is Thủy điện Bắc Mê or Dự án Thủy điện Bắc Mê. The Chinese project title is 越南北迷水电站项目 or 越南北迷(BacMe)水电站 2. The Vietnamese name of the borrower and project owner is Tổng công ty cổ phần Thương mại Xây dựng (Vietracimex or Vietnam Trading Engineering Construction JSC). 3. Some sources suggest that Industrial and Commercial Bank of China (ICBC) was involved in the financing of this project, which suggests the possibility of a syndicated loan. This issue warrants further investigation. 4. Under the terms of its February 9, 2015 contract with Vietnam Trading Engineering Construction Joint Stock Corporation, Zhefu Hydropower International Engineering Corporation Limited was responsible for delivering all equipment to the project site by June 30, 2017. 5. This loan is not included in the China’s Overseas Development Finance Dataset that Boston University's Global Development Policy Center published in December 2020.

Number of official sources

11

Number of total sources

21