China Eximbank provides $56.95 million preferential buyer’s credit for 48MW Chiem Hoa Hydropower Project

In 2013, China Eximbank and Vietnam Investment Construction and Trading Joint Stock Company (also known as Vietnam Investment Construction and Trading JSC, Constrexim Holdings, and ITC) — a Vietnamese state-owned company — signed a $56.95 million preferential buyer’s credit (PBC) loan agreement for the 48MW Chiem Hoa Hydropower Project. The borrowing terms include a 17-year maturity and a 3-year grace period but the interest rate is unknown. The Government of Vietnam issued a sovereign guarantee. The loan proceeds to be used by the borrower to finance 85% of a $67 million commercial (EPC) contract between Vietnam Investment Construction and Trading Joint Stock Company, Guangxi Electric Power Industry Investigation Design and Research Institute (GXED), and Guangdong Hydropower Second Bureau Co., Ltd., which was signed on October 5, 2009. The purpose of the project was to construct a 48MW hydroelectric power plant — with three, 18MW power generation units (Unit 1, Unit 2, and Unit 3) — on the Gam River within Ngoc Hoi commune, Chiem Hoa district, and Tuyen Quang province. It involved the construction of a weir, a spillway dam, a powerhouse (containing bulb turbines and generators) and a tailrace. The electricity generated by the power plant was to be delivered to the national grid via a new 3.5 km 110 kV transmission line. GXED and Guangdong Hydropower Second Bureau Co., Ltd were the contractors responsible for implementation. All turbines, generators, and governors were to be imported from China. Construction began on October 12, 2009. The first power generation unit was successfully connected to the national grid and put into trial operation on July 7, 2012. A project completion ceremony took place on March 4, 2013. Upon completion, the power plant was expected to generate approximately 194,628 MWh of power for export to the national grid resulting in estimated emission reductions of 112,184 tons of CO2 per year.

Additional details

1. The Chinese project title is 越南占化水电站项目 or 占化水电站项目. The Vietnamese project title is Thủy điện Chiêm Hóa or Nhà máy thủy điện ICT Chiêm or Nhà máy Thủy Điện ICT Chiêm Hóa. 2. Multiple project refer to the total cost of the project as VDN 1,335,000,000,000. 3. An official Chinese Government source (https://www.dropbox.com/s/2urqxbo2d2yx8ia/%E8%B6%8A%E5%8D%97%E7%AC%AC%E4%B8%80%E5%BA%A7%E7%BB%BF%E8%89%B2%E6%B0%B4%E7%94%B5%E7%AB%99%E4%B8%AD%E5%9B%BD%E5%BB%BA---%E5%9B%BD%E5%AE%B6%E8%83%BD%E6%BA%90%E5%B1%80.pdf?dl=0) states that the loan was use to finance 85% of the cost of the $67 million commercial contract with GXED and Guangdong Hydropower Second Bureau Co., Ltd. Therefore, AidData assumes that the face value of the loan was $56.95 million. 4. This loan is not included in the China’s Overseas Development Finance Dataset that Boston University's Global Development Policy Center published in December 2020.

Number of official sources

9

Number of total sources

14