China Eximbank provides loan for 86MW Buon Tua Srah Hydropower Project

Project narrative

In 2006, China Eximbank and Power Generation Corporation 3 (EVNGENCO 3) — a wholly owned subsidiary of the state-owned Vietnam Electricity (EVN) — signed a buyer’s credit loan agreement for the 86MW Buon Tua Srah Hydropower Project. The face value of the loan is unknown, but it is known that the proceeds of the loan were to be used by the borrower to partially finance a $215.461 million commercial contract with Dongfang Electric Corporation (DEC), which was signed on May 9, 2006. It is also known that the Government of Vietnam issued a sovereign guarantee for this loan in 2007. The loan carried an estimated maturity of 14 years (final maturity date: 2020) and an estimated grace period of 5 years (first repayment date: July 21, 2011). It was scheduled for repayment over a 9-year period between July 21, 2011 and July 21, 2020. The loan’s interest rate is unknown. Its amount outstanding was VND 144,038,310,850 as of December 31, 2016 and VND 36,704,803,789 as of December 31, 2019. By December 2020, the loan was fully repaid. The purpose of the project was to construct a 86MW hydroelectric power plant — with two, 43MW power generation units (Unit 1 and Unit 2) — in Nam Ka commune, Lak district, and Dak Lak province. DEC was the contractor responsible for project implementation. The project commenced on November 25, 2004. Reservoir water storage took place on July 11, 2009. Unit 1 began commercial operations on September 7, 2009. Unit 2 was connected to the national grid on December 21, 2009. Construction was completed on July 7, 2011.