China Eximbank provides $355 million buyer's credit loan for 600MW Quang Ninh 2 Coal-Fired Power Plant Construction Project (Linked to Project ID#65940)

On April 4, 2007, the Export-Import Bank of China and Vietnam Electriity (EVN) signed a $355,793,000 buyer's credit loan (BCL) agreement (BLASH 2007003) for the 600MW Quang Ninh 2 Coal-Fired Power Plant Construction Project. The borrowing terms of the loan are as follows: 17-year maturity, 7-year grace period, 5.2532% interest rate, 0.2% re-lending fee, and 0.2% commitment fee. The loan’s final maturity date is 2023. Sinosure provided buyer’s credit insurance. The loan was also secured by (i.e. collateralized with) the equipment and property of the Quang Ninh 2 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 $418 million engineering, procurement, and construction (EPC) contract signed on November 16, 2006 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 3 and Unit 4) — 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 May 28, 2007. Unit 3 was connected to the national grid on December 13, 2012. It secured a temporary Acceptance Certificate (PAC) certificate on January 1, 2014. Unit 4 was connected to the national grid on September 9, 2013. It secured a temporary Acceptance Certificate (PAC) certificate on March 16, 2014. Units 3 and 4 began commercial operations on June 1, 2015. In 2006, China Eximbank also issued a $407 million buyer’s credit loan for the Quang Ninh 1 Coal-Fired Power Plant Construction Project (as captured via Project #65940).

Additional details

1. The Vietnamese project title is Dự án Nhiệt điện Quảng Ninh 2. The Chinese project title is 南广宁300MW*2 燃煤火电 or 越南广宁二期项目. 2. 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. 3. AidData has estimated the maturity and grace period of the loan based on the fact that the loan was issued in 2007 and the principal repayment period was 120 months starting from 2013.

Number of official sources

7

Number of total sources

12