China Eximbank provides loan — via EPCF arrangement — for 330MW Phu My Solar Power Plant Project

On June 12, 2020, Powerchina Jiangxi Electric Power Construction Co., Ltd. and Bamboo Capital Group signed an Engineering, Construction, Procurement, and Financing (EPCF) contract worth $267.3 million for the 330MW Phu My Solar Power Plant Project. Powerchina Jiangxi Electric Power Construction Co., Ltd., in turn, secured a loan from China Eximbank to finance the $267.3 million EPCF contract. The borrowing terms of the loan are unknown. The purpose of the project was to construct a 330MW solar power plant — in an area encompassing 333.33 hectares — within Quy Nhon city, Phu My District, and Binh Dinh Province. The project was implemented in two phases. Phase 1 involved the installation of 120MW and Phase 2 involved the installation of 210MW. Upon completion, the power plant is expected to generate 500 million kilowatt hours of clean electricity every year. Powerchina Jiangxi Electric Power Construction Co., Ltd. was the general EPC contract responsible for implementation. Phase 1 construction began on May 29, 2020. Phase 1, which ultimately involved the installation of 216 MW, was connected to the national grid and achieved its commercial operation date on December 31, 2020. A grand opening ceremony for Phase 1 took place on April 9, 2020. Phase 2 was originally expected to reach completion in June 2021. However, it ultimately involved the installation of 113MW and reached completion on January 29, 2022.

Additional details

1. The Chinese project title is 越南富美项目 or 越南富美330MWP光伏电站 or 越南富美光伏电站. The Vietnamese project title is Nhà máy điện mặt trời Phù Mỹ 1 and Nhà máy điện mặt trời Phù Mỹ 2. Under most EPCF contractual arrangements, a loan is extended to the EPC contractor but with a sovereign guarantee from the host government. Therefore, AidData assumes that the loan issued to Powerchina Jiangxi Electric Power Construction Co., Ltd. was backed by a repayment guarantee from the Government of Vietnam (i.e. a sovereign guarantee). 3. The face value of the China Eximbank loan is unknown. For the time being, AidData assumes that the face value of the loan was worth 85% of the $267.3 million EPCF contract ($227,205,000).

Number of official sources

4

Number of total sources

20