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Overview

China Eximbank provides $278 million buyer's credit loan for 600MW Hai Phong 1 Coal-Fired Power Plant Construction Project (Linked to Record ID#65739)

Commitments (Constant USD, 2023)$557,203,884
Commitment Year•2005Country of Activity•Viet NamDirect Recipient Country of Incorporation•Viet NamSector•EnergyFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Oct 31, 2005
Start (actual)
Jul 20, 2005
End (actual)
Nov 25, 2011
Last repayment
Oct 29, 2015

Geospatial footprint

Map overview

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The purpose of the project was to construct a 600MW coal-fired power plant — with two, 300MW power generation units (Unit 1 and Unit 2) — in Tam Hưng commune, Thủy Nguyên district, and Hải Phòng province (exact locational coordinates: 20.9427817, 106.7578707). More detailed locational information can be found at https://www.openstreetmap.org/way/549889774

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Ultimate beneficial owners

At least 25% host country ownership

Funding agencies

State-owned Policy Banks

  • Export-Import Bank of China (China Eximbank)

Receiving agencies

State-owned companies

  • Hai Phong Thermal Power Joint Stock Company
  • Vietnam Electricity (EVN)

Implementing agencies

Private Sector

  • Marubeni Corporation

State-owned companies

  • Dongfang Electric Corporation (DEC)
  • Hai Phong Thermal Power Joint Stock Company

Insurance providers

State-owned companies

  • China Export & Credit Insurance Corporation (Sinosure)

Loan desecription

China Eximbank provides $278 million buyer's credit loan for 600MW Hai Phong 1 Coal-Fired Power Plant Construction Project

Interest type•UnknownMaturity•10 years

Narrative

Full Description

Project narrative

On October 31, 2005, China Eximbank and Vietnam Electricity (EVN) — a state-owned power company — signed a $278 million buyer's credit loan (BCL) agreement for the 600MW Hai Phong 1 Coal-Fired Power Plant Construction Project. This loan carried a 10 year maturity but the interest rate and grace period are unknown. The proceeds of the China Eximbank loan were on-lent by EVN to its subsidiary and project company, Hai Phong Thermal Power Joint Stock Company. Sinosure provided export credit insurance for the China Eximbank loan. The proceeds of the loan were to be used by the ultimate borrower to partially finance a $507 million EPC contract signed on July 20, 2005 with Japan's Marubeni Corporation and China's Dongfang Electric Corporation (DEC). The total cost of the 600MW Hai Phong 1 Coal-Fired Power Plant Construction Project was VND 967.0 billion (approximately $640 million). It was co-financed with a $70 million loan from Japan Bank for International Cooperation (JBIC) as well as a third loan of an unknown value from Bank for Investment and Development of Vietnam (BIDV). The purpose of the project was to construct a 600MW coal-fired power plant — with two, 300MW power generation units (Unit 1 and Unit 2) — in Tam Hưng commune, Thủy Nguyên district, and Hải Phòng province. DEC and Marubeni Corporation were the EPC contractors responsible for implementation. A project commencement ceremony took place on November 28, 2005. Unit 1 came online in July 2011, and Unit 2 came online in November 2011. The project was officially completed and handed over to the local authorities on November 25, 2011. China Eximbank also provided a $385 million buyer’s credit loan for 600MW Hai Phong 2 Coal-Fired Power Plant Construction Project (see Record ID#65739).

Staff comments

1. This project is also known as the 2x300MW Hai Phong-1 Coal-Fired Power Plant Construction Project, the 2x300 MW Hai Phong Thermal Power Plant Phase 1 Project, the Haiphong 1 Coal-Fired Power Plant Project, or the Hai Phong TPP Project Phase 1. The Vietnamese project title is NMNĐ Hải Phòng 1. 2. Hai Phong Thermal Power Joint Stock Company (Công ty Cổ phần Nhiệt điện Hải Phòng), which is majority-owned by EVN, was established on September 17, 2002. 3. 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.