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

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 Project #65739).

Additional details

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.

Number of official sources

9

Number of total sources

22