Bank of China contributes to $2 billion syndicated buyer’s credit loan for 1980MW Vinh Tan 3 Coal-Fired Power Plant Construction Project (linked to Record ID#65742, #100837, #100838, #100839)

📋 Staff Comments

1. The Chinese project title is 越南永新三期火电总承包项目 or 越南永新三期3×660MW火电总承包项目 or Vinh Tan三期進行項. The Vietnamese project title is Nhiệt điện Vĩnh Tân 3 or Nhà Máy Nhiệt Điện Vĩnh Tân 3.
2. No sources explicitly state that this loan was an export buyer's credit. AidData assumes this is the case for the following reasons: (1) it is denominated in USD, (2) the borrower is foreign, (3) it was partially financing the commercial contract, and (4) Sinosure provided export credit insurance.
3. OneEnergy Ventures Limited is a joint venture between Hong Kong-based CLP Holdings and Diamond Generating Asia (DGA), a subsidiary of Japan’s Mitsubishi Corporation.
4. In the Overseas Development Finance Dataset that Boston University’s Global Development Policy Center published in December 2020, it identifies a $200 million China Eximbank loan for this project. However, AidData has not yet independently confirmed China Eximbank’s participation in the loan syndicate. This issue requires further investigation.
5. It is not clear if this loan was collateralized. This issue warrants further investigation. According to one source (https://www.iflr.com/article/b1lp1tjcln8wxj/2018-project-finance-report-vietnam), 'lenders [that support PPP projects] commonly face a number of restrictions when securing their loans with assets located Vietnam. In particular, [...] land use rights and assets attached to the land can only be mortgaged to licensed Vietnamese credit institutions. In the context of major infrastructure projects (for example, thermal power plants), the project company would typically mortgage the land use rights and assets attached to the land to a licensed credit institution within the syndicated on behalf of the lenders. Lenders would obtain comfort from this structure through a government guarantee issued by the Government, supported by a confirmation by the State Bank of Vietnam, a legal opinion issued by the Ministry of Justice (MOJ) and by specific acknowledgments and consents issued by the relevant Ministries and key local authorities involved in the project.
6. The individual contributions of China Development Bank, China Construction Bank, Industrial and Commercial Bank of China, China Bank of Communications, and Bank of China to the $2 billion syndicated loan are unknown. For the time being, AidData assumes equal contributions ($400 million) across all five known members of the syndicate.

📚 Sources & References

• Vinh Tan 3 Coal-Fired Power Plant (1980MW)
• Vinh Tan 3 (1980 MW), 2015 Annual Report
• 国务院总理李克强和越南总理阮晋勇共同见证哈电国际与越南永新三能源有限公司签署永新三期火电总承包项目框架合作协议
• Electricity of Vietnam - Vinh Tan 3 Coal Power Plant
• Tình hình thực hiện các dự án điện theo hình thức BOT ở Việt Nam
• 哈电国际签订越南永新三期3×660MW火电总承包项目
• 中越总理共同见证哈电签署越南永新三期火电总承包项目框架合作协议
• Vinh Tan power station, nergy HSBC exits Vinh Tan 3 coal power project in Vietnam
• Mitsubishi rút khỏi dự án nhiệt điện Vĩnh Tân 3
• DBS drops out of CDB-backed Vinh Tan 3 coal-fired
• EVN đề xuất gỡ vướng Dự án Nhiệt điện Vĩnh Tân 3
• CLP 2016 Annual Report
• Mitsubishi pulls out of Vietnam coal plant amid climate concerns, 350.org on HSBC’s announcement to stop financing the coal-fired power station of Vinh Tan 3, in Vietnam
• THE LEGAL 500 > ASIA PACIFIC > VIETNAM > PROJECTS AND ENERGY
• China's Overseas Development Finance, ベトナムにおける電力分野への海外展開支援に係る基礎情報収集調査 Loan applications and disbursements are still being received and processed as the projects continue to evolve. Ongoing monitoring and evaluation are in place to ensure project continuity.