Completed Mixed AidData Chinese Aid

China Development Bank contributes $600 million to $692 million syndicated buyer’s credit loan for 600MW Thang Long Coal-Fired Power Plant Construction Project

$600K USD

Funder	China Development Bank (CDB)
Recipient Organization	Thang Long Thermal Power Joint Stock Company
Country	Viet Nam
Start Date	Oct 01, 2014
End Date	Aug 18, 2030
Duration	5,800 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`64420`

Grant Description

CDB contribution to $692 million syndicated buyer’s credit loan for 600MW Thang Long Coal-Fired Power Plant Construction Project In October 2014, Thang Long Thermal Power Joint Stock Company— a project company that is owned by Hanoi Export-Import Company (Geleximco Group)— signed a $692 million syndicated buyer’s credit loan (BCL) agreement with a group of banks (including China Development Bank) for the 600MW Thang Long Coal-Fired Power Plant Construction Project.

China Development Bank (CDB) contributed approximately $600 million to the loan. The other syndicate participants and their contributions are unknown.

📋 Loan / Grant Terms

💰 Loan Amountare also unknown

Sinosure provided $919 million of buyer’s credit insurance to cover the principal and interest of the loan. The Vietnam Ministry of Finance also issued a sovereign guarantee on December 21, 2011.

The loan proceeds were to be used by the borrower to partially finance a $645 million EPC contract signed on December 29, 2010 with Wuhan Kaidi Electric Power Engineering Co., Ltd. This $800 million Independent Power Project (IPP) was financed according to a debt-to-equity ratio of 80:20. Geleximco Group made a $160 million equity contribution.

The purpose of the project was to construct a 600MW coal-fired power plant — with two, 300MW power generation units (Unit 1 and Unit 1) — in Lê Lợi commune, Hoành Bồ district, and Quảng Ninh province (exact locational coordinates: 21.02184, 107.04815). Construction began in October 2014.

In August 2015, French firm Alstom was awarded a sub-contract to supply two circulating-fluidized-bed boilers. In June 2017, plans were finalized to build a 500 kV power line to connect the plant to the grid. Unit 1 was completed on May 13, 2018. Unit 2 was completed on July 29, 2018.

In August 2020, it was reported that An Binh Energy and Infrastructure Fund had acquired a 45% indirect ownership stake in the power plant with an investment of $155 million.

📋 Staff Comments

This project is also known as the 620MW Thang Long Coal-Fired Power Plant Construction Project. The Vietnamese project title is Nhà máy nhiệt điện Thăng Long GELEXIMCO or Nhà máy nhiệt điện Thăng Long. The Chinese project title is 越南升龙燃煤火电厂 EPC 项目 or 越南沿海火电 EPC 项目 or 能建建设的越南升龙项目 or 越南升龙燃煤火电厂.
Thang Long Thermal Power Joint Stock Company is also known as Thang Long Thermal Power JSC or 升龙热电股份有限公司 or Công ty CP Nhiệt điện Thăng Long.
The CDB loan that supported this project is not included in the Overseas Development Finance Dataset that Boston University’s Global Development Policy Center published in December 2020.
According to an IFLR 1000 2017 report (see source #82143), CDB contributed just $580 million (PDF p. 34), not $600 million. This issue warrants further investigation.

📚 Sources & References

Construction of Thang Long Thermal Power Plant begins
Alstom to supply the largest CFB Boilers in Vietnam
Tung Nguyen
關於募集資金2015年度存放與使用情況的專項報告
VILAF Vietnam
Thang Long power station, 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
China's Global Energy Finance
越南升龙燃煤电站工程2号机组通过168试运
中国能建建设的越南升龙项目360小时试运一次成功
武汉凯迪电力股份有限公司越南升龙项目关联交易公告
Thang Long power station
NHÀ MÁY NHIỆT ĐIỆN THĂNG LONG GELEXIMCO
Công văn 347/TTg-KTTH
Bảo lãnh vay vốn cho dự án Nhiệt điện Thăng Long
Tung Nguyen
Banking and Finance
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Thang Long Coal-Fired Power Plant (600MW)
ABEIF acquires Vietnam coal-fired 45% stake
China's Overseas Development Finance
Deal List: Focus on Energy
Mining and Infrastrcuture
越南升龙燃煤火电厂EPC总承包项目
ENERGY AND INFRASTRUCTURE 2017
越南升龙2×30万燃煤发电项目1号机组试运一次成功
China Merchants Port adquire participação de 90% na TCP – Terminal de Contêineres de Paranaguá, da Advent International e dos sócios-fundadores
TCP Participações S.A.Demonstrações financeiras em 31 de dezembro de 202
China-Portugal Cooperation Development Fund managed by China-Africa Development Fund and China-LAC Cooperation Fund managed by The Export-Import Bank Of China
Investment Arm acquired 22.55% stake in TCP Participações S.A. from China Merchants Port Holdings Company Limited. 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.