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Overview

China Eximbank provides $385.22 million buyer's credit loan for 600MW Hai Phong 2 Coal-Fired Power Plant Construction Project (Linked to Record ID#65736)

Commitments (Constant USD, 2023)$640,067,890
Commitment Year•2007Country 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
Jun 12, 2007
Start (actual)
Jul 4, 2007
End (actual)
Jun 12, 2014

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: 20.9397669, 106.7549156). 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)

Cofinancing agencies

State-owned Banks

  • Japan Bank for International Corporation (JBIC)

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)

Guarantors

Government Agencies

  • Government of Viet Nam

Insurance providers

State-owned companies

  • China Export & Credit Insurance Corporation (Sinosure)

Loan desecription

China Eximbank provides $385.22 million buyer's credit loan for 600MW Hai Phong 2 Coal-Fired Power Plant Construction Project

Interest type•Unknown

Narrative

Full Description

Project narrative

On June 12, 2007, China Eximbank and Vietnam Electricity (EVN) — a state-owned company — signed a $385.22 million buyer's credit loan (BCL) agreement for the 600MW Hai Phong 2 Coal-Fired Power Plant Construction Project. The borrowing terms are unknown. The loan proceeds were on-lent by EVN's subsidiary, Hai Phong Thermal Power Joint Stock Company. Sinosure provided buyer's credit insurance and the Government of Vietnam provided a sovereign guarantee for this loan. The total cost of the 600MW Hai Phong 2 Coal-Fired Power Plant Construction Project was $1.2 billion. Besides China Eximbank, Japan Bank for International Cooperation (JBIC), Mizuho Corporate Bank, and Société Générale Tokyo also contributed financial support. The China Eximbank loan proceeds were used by the ultimate borrower to finance 85% of a $453.2 million EPC contract signed in November 2006 with Japan's Marubeni Corporation and China's Dongfang Electric Corporation (DEC). 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. A project commencement ceremony took place on July 4, 2007. Unit 1 came online in August 2013, and Unit 2 came online in February 2014. The project was completed on June 12, 2014. China Eximbank also provided a $278 million BCL for the 600MW Hai Phong 1 Coal-Fired Power Plant Construction Project (captured via Record ID#65736).

Staff comments

1. This project is also known as Phase 2 of Hai Phong Coal-Fired Power Plant Construction Project, the 2x300MW Hai Phong Thermal Power Plant Phase 2 Project, the Haiphong 2 Coal-Fired Power Plant Project or the Hai Phong TPP Project Phase 2. The Vietnamese project title is NMNĐ Hải Phòng 2. The Chinese project title is 越南海防热电厂二期 or 越南海防二期项目. The Vietnamese project title is NMNĐ Hải Phòng 2 or Nhà máy Nhiệt điện Hải Phòng 2. 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. No sources explicitly state that China Eximbank committed $385.22 million. However, sources confirm that the China Eximbank loan proceeds were used to finance 85% of a $453.2 million EPC contract (see "Khởi công Dự án Nhà máy Nhiệt điện Hải Phòng 2"). 453.2 x 0.85 = 385.22. 4. According to a working paper from the University of Tokyo (see source #32278 p. 12) and the Overseas Development Finance Dataset that Boston University’s Global Development Policy Center published in December 2020 (see source #122899), China Eximbank supported this project with a $557 million loan. Boston University also claims this loan agreement was signed in 2008, not 2007.