China Eximbank provides $407 million buyer's credit loan for 600MW Quang Ninh 1 Coal-Fired Power Plant Construction Project (Linked to Project ID#65941)

On October 31, 2005, the Export-Import Bank of China and Vietnam Electricity (EVN) — a Vietnamese state-owned power company — signed a loan framework agreement for the 600MW Quang Ninh 1 Coal-Fired Power Plant Construction Project. Then, on April 1, 2006, China Eximbank and EVN signed a $407,425,534 buyer's credit loan (BCL) agreement (or BLA 06010) for this project. The borrowing terms of the loan were as follows: a 13.83-year (166 months) maturity, a 3.83-year (46 months) grace period, a 5.115% interest rate, a 0.2% commitment fee, and a 0.2% re-lending fee. The loan’s final maturity date was 2021. Sinosure provided buyer’s credit insurance for the loan. This loan was also secured by (i.e. collateralized with) the equipment and property of the Quang Ninh 1 Coal-Fired Power Plant itself. EVN on-lent the proceeds of the China Eximbank loan to Quang Ninh Thermal Power Joint Stock Company (QTP JSC), a project company that is jointly owned by EVN (80%), Vinacomin (15%), and Vinaconex (5%). The proceeds of the loan were to be used by the ultimate borrower to partially finance a $452 million EPC contract signed on October 31, 2005 with Shanghai Electric Group Company Limited. 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 Hà Khánh ward, Hạ Long city, and Quảng Ninh province. Shanghai Electric Group Company Limited was the EPC contractor responsible for implementation. Construction began on April 2, 2006. Unit 1 was connected to the national grid on May 12, 2009. It completed a reliability test in March 2010 and it secured a temporary Project Acceptance Certificate (PAC) certificate in July 2011. Unit 2 was connected to the national grid on June 2, 2010. It secured a temporary Project Acceptance Certificate (PAC) certificate in April 2011. Units 1 and 2 began commercial operations on July 1, 2011.

Additional details

1. This project is also known as the 2x300MW Quảng Ninh 1 Coal-Fired Power Plant Construction Project. The Vietnamese project title is Dự án Nhiệt điện Quảng Ninh 1 or NDQN 1. The Chinese project title is 广宁火电厂位 or 建的越南广宁火电厂一期工程（600MW) or 南广宁300MW*2 燃煤火电一期. 2. According to the Overseas Development Finance Dataset that Boston University’s Global Development Policy Center published in December 2020, China Eximbank supported this project with a $176 million loan in 2009. 3. In 2007, China Eximbank also issued a $355 million buyer’s credit loan for the 600 MW Quang Ninh 2 Coal-Fired Power Plant Construction Project (as captured via Project #65941).

Number of official sources

8

Number of total sources

18