Completed Development AidData Chinese Aid

CDB provides $55 million loan for 45MW Bac Me Hydropower Plant Project

$55M USD

Funder	China Development Bank (CDB)
Recipient Organization	Vietnam Trading Engineering Construction Joint Stock Corporation
Country	Viet Nam
Start Date	Jan 01, 2015
End Date	Feb 27, 2033
Duration	6,632 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`64402`

Grant Description

CDB provides $55 million loan for 45MW Bac Me Hydropower Plant Project In 2015, China Development Bank (CDB) Guangxi Branch issued a $55 million loan to Vietnam Trading Engineering Construction Joint Stock Corporation— a Vietnamese state-owned enterprise— for the 45MW Bac Me Hydropower Plant Project.

The loan's borrowing terms are unknown.

However, it is known that the borrower was to use the proceeds of the loan to partially cover the VND 1,400,000,000,000 ($61.6 million) total project cost.

The purpose of the project was to construct a 45MW hydroelectric power plant — with two, 22.5MW power generation units (Unit 1 and Unit 2) — on Gam river in Yen Phong and Phu Nam communes, Bac Me district, and Ha Giang province.

Song Da 5 Joint Stock Company and Zhefu Hydropower International Engineering Corporation Limited were the contractors responsible for implementation. The Government of Vietnam approved the project’s environmental impact assessment (EIA) on August 7, 2012. Construction commenced on November 23, 2014.

On February 9, 2015, Vietnam Trading Engineering Construction Joint Stock Corporation and Zhefu Hydropower International Engineering Corporation Limited signed a $18,527,960.60 mechanical and electrical equipment supply, installation, and technical service contract.

Then, on September 28, 2017, the People's Committee of Ha Giang province alleged that the power plant had violated local regulations and reservoir-bed accumulation and water discharge had triggered landslides along the river banks of the Ha Giang-Cao Bang Section of Highway 34. Another landslide was triggered by the power plant on December 13, 2017.

The project was ultimately completed on April 2, 2020.

📋 Staff Comments

This project is also known as the 45MW Bac Me Hydropower Plant Project or the VTEC Bac Me Hydropower Plant Project. The Vietnamese project title is Thủy điện Bắc Mê or Dự án Thủy điện Bắc Mê. The Chinese project title is 越南北迷水电站项目 or 越南北迷(BacMe)水电站 2. The Vietnamese name of the borrower and project owner is Tổng công ty cổ phần Thương mại Xây dựng (Vietracimex or Vietnam Trading Engineering Construction JSC).
Some sources suggest that Industrial and Commercial Bank of China (ICBC) was involved in the financing of this project, which suggests the possibility of a syndicated loan. This issue warrants further investigation.
Under the terms of its February 9, 2015 contract with Vietnam Trading Engineering Construction Joint Stock Corporation, Zhefu Hydropower International Engineering Corporation Limited was responsible for delivering all equipment to the project site by June 30, 2017.
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.

📚 Sources & References

BAC ME HYDROPOWER PROJECT
Khảo sát VGF cho các dự án PPP tại Việt Nam
Thủy điện Bắc Mê
QUYẾT ĐỊNH PHÊ DUYỆT ĐIỀU CHỈNH QUY HOẠCH PHÁT TRIỂN ĐIỆN LỰC QUỐC GIA GIAI ĐOẠN 2011 - 2020 CÓ XÉT ĐẾN NĂM 2030
DỰ ÁN THỦY ĐIỆN BẮC MÊ
Thủy điện Bắc Mê phát điện khi chưa có giấy phép, .
Những 'khoảng tối' đầu tư thủy điện tại Việt Nam
Chủ tịch UBND huyện làm việc với Nhà máy thủy điện Bắc Mê, 2017 Report: VGF Survey for PPP Projects in Viet Nam
World Bank PPI
浙富控股集团股份有限公司关于全资子公司签署工程合同的公
浙富控股：2016年面向合格投资者公开发行公司债券（第一期）上市公告书
浙富控股集团股份有限公司关于全资子公司签署工程合同的公告
浙富控股中标1.16亿越南水电站设备供货项目
TB tuyen LD tuy dien Bac Me0001
邵国忠
Vietnam / Bac Me Hydropower plant construction Project
Bac Me hydropower project have 45 days earlier than the approved construction schedule
CHINHANH VIETRACIMEX
Cavico unit wins civil contract for Vietnam’s 60-MW Ta Thang 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.