China Eximbank provides RMB 709.72 million government concessional loan for 100MW Cao Ngan Coal-Fired Power Plant Construction Project

Project narrative

On September 25, 2000, the Chinese Government pledged to finance the 100MW Cao Ngan Coal-Fired Power Plant Construction Project. Then, on March 19, 2003, China Eximbank and the Vietnam Ministry of Finance signed an RMB 709,720,000 ($85.5 million) government concessional loan (GCL) agreement for the project. The GCL carried the following borrowing terms: a 5-year grace period, a 15-year maturity, and a 3% interest rate. The proceeds of the loan were to be used to finance an EPC contract signed in May 2002 with Harbin Power Engineering Company Limited (HPEC). The purpose of the project was to construct a 100MW coal-fired power plant — with two, 50MW power generation units (Unit 1 and Unit 2) — in Thai Nguyen province. HPEC was the contract responsible for project implementation. Construction officially began on November 12, 2002, and, as of January 2004, the power plant was scheduled for commissioning during the fall of 2004. The power plant was ultimately put into operation and connected to the national power grid in March 2007.