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

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 Project ID#65736).

Additional details

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.

Number of official sources

14

Number of total sources

27