Loading grant details…
China Development Bank contributes to $1 billion syndicated loan for 1245MW Duyen Hai 3 Coal-Fired Power Plant Construction Project
| Funder | China Development Bank (CDB) |
|---|---|
| Recipient Organization | Vietnam Electricity (EVN) |
| Country | Viet Nam |
| Start Date | Jan 01, 2012 |
| End Date | Sep 07, 2031 |
| Duration | 7,189 days |
| Number of Grantees | 1 |
| Roles | Recipient |
| Data Source | AidData Chinese Aid |
| Grant ID | 65794 |
Grant Description
China Eximbank, BOC and ICBC contribution to $1 billion syndicated buyer’s credit loan to 1245MW Duyen Hai 3 Coal-Fired Power Plant Construction Project In 2012, China Development Bank (CDB), Industrial and Commercial Bank of China (ICBC), and the Sichuan and Ho Chi Minh City branches of Bank of China (BoC) signed a $1,000,898,001 billion syndicated buyer’s credit loan (BCL) agreement with Vietnam Electricity (EVN) — a state-owned company — for the 1245MW Duyen Hai 3 Coal-Fired Power Plant Construction Project.
Sinosure provided export buyer’s credit insurance for this syndicated BCL.
The total cost of the Independent Power Project (IPP) was $1.5 billion and it was financed with a mix of debt and equity.
The borrower used the syndicated BCL proceeds to finance 85% a $1,177,527,060 EPC contract signed in August 2011 with a consortium of companies including: China Chengda Engineering Co.
Ltd, Dongfang Electric Corporation (DEC), the Southwest Electric Power Design Institute (SWEPDI), and Zhejiang Electric Power Construction (ZEPC). The remaining 15% was financed by EVN counterpart funding.
The purpose of the project was to construct a 1245MW coal-fired power plant — with two, 622.5MW power generation units (Unit 1 and Unit 2) — in Dan Thanh commune, Duyên Hải district, and Trà Vinh province. Initial project preparation work took place in September 2010. The project officially commenced on December 8, 2012.
Unit 1 and Unit 2 were originally scheduled for completion in Q4 of 2015 and Q2 of 2016, respectively. However, Unit 1 and Unit 2 were ultimately completed on January 15, 2017 and April 14, 2017, respectively.
In August 2018, an audit report on the Duyên Hải-3 power plant found that EVN had underestimated the project's cost by 8.8 billion Vietnamese Dong (VND).
EVN did not fully withdraw the committed loan value of the foreign loan contracts so they had to work with Sinorsure to recover $2.9 million.
By April 2018, at the time of the audit, EVN had not worked with the insurance unit Sinosure to recover the amount of $2.9 million corresponding to the undisbursed amount of $37.8 million in the credit contract to save the investment cost of the project.
Record ID #65794 captures the estimated financial commitment of CBD to the $1 billion syndicated loan; RecordID #100825 captures the estimated financial commitment of ICBC; and Records ID #100827 #110398 capture the estimated financial commitments of the two Bank of China branches.
Staff Comments
- This project is also known as the 2x622 MW Duyen Hai 3 Thermal Power Plant Project, the Duyên Hải-3 (2 x 622.5 MW) Project, and the 1245 MW Duyen Hai 3 Thermal Power Plant Project. The Chinese project title is 越南沿海三期燃煤电站项目 or 越南沿海火电项目. The Vietnamese project title is Duyên Hải-3 or Nhà máy Nhiệt điện Duyên Hải 3.
- Southwest Electric Power Design Institute (SWEPDI) is a subsidiary of the China Energy Engineering Group.
- According to the Boston University (BU) China's Overseas Development Finance Dashboard, this syndicated loan is worth $1 billion. AidData derived the exact transaction amount ($1,000,898,001) by multiplying the exact EPC contract amount ($1,177,527,060) by 0.85 since this syndicated BCL covered 85% of the EPC contract (see EVN press release in source #85202).
- The individual contributions of CDB, ICBC, BoC (Sichuan Branch), and BOC (Ho Chi Minh City Branch) to the $1,000,898,001 syndicated loan are unknown. For the time being, AidData assumes equal contributions ($250,224,500.25 each) across all 4 known members of the syndicate.
- China Eximbank, ICBC, Bank of China, and CDB also contributed to the Duyen Hai 1 Coal-Fired Power Plant Construction Project and the Duyen Hai 2 Coal-Fired Power Plant Construction Project (as captured via Project ID#65148, #65791, and #72770).
Sources & References
- 金融合作拓宽中越经贸发展之路
- Khởi công xây dựng nhà máy nhiệt điện Duyên Hải 3
- Vietnam Investment Review
- Duyen Hai 3 Thermal Power Plant
- Chinese consortium gets EPC contract for Vietnamese coal-fired plant
- Thông cáo báo chí Lễ khởi công xây dựng Nhà máy Nhiệt điện Duyên Hải 3
- VIETNAM INFRASTRUCTURE REPORT
- ANNUAL REPORT 2012-2013
- 对外投资合作国别（地区）指南 越南 2017版
- 山东电建越南沿海电厂三期工程2号机组获FAC证书
- 由中国能建浙江火电承建的越南沿海三期燃煤电站项目1号机组正式投产
- China's Overseas Development Finance
- Những Dự Án Nhà Máy Nhiệt Điện Than Ở Việt Nam – Mai Thanh Truyết
- Báo động: Trung tâm Nhiệt điện Duyên Hải sắp trở thành căn cứ của Trung Quốc
- Dự án Nhiệt điện Duyên Hải 3 đội vốn 8.700 tỉ đồng
- BU_PITCH_ENGLISH_2019-clean5.xlsx
- Deal List: Focus on Energy
- Mining and Infrastrcuture
- Active Participant in Boosting Sino-Arab Energy & Power Cooperation: Vision of Dongfang Electric Corporation
- Quantifying Chinese Public Financing for Foreign Coal Power Plants
- 中国银行胡志明市分行出席越南电力集团沿海三期燃煤电站 开工仪式
- Vietnam's Official Sector PRC Borrowings and Borrowing Terms -- IDS Extraction October 2024 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.
All Grantees
Vietnam Electricity (EVN)
Interested in applying for this grant?
Complete our application form to express your interest and we'll guide you through the process.
Apply for This GrantQuick Summary
Related Grants
