Bank of China provides $260 million buyer's credit loan for 440MW Mao Khe Coal-Fired Power Plant Construction Project (Linked to Record ID#73296)

Bank of China participates in USD 275 million buyer's credit loan for 440MW Mao Khe Coal-Fired Power Plant Construction Project in 2011 On April 7, 2011, the Hubei Branch of the Bank of China (BOC) and BNP Paribas (a French banking group) signed a $275 million syndicated buyer’s credit loan agreement with Vietnam National Coal, Mineral Industries Corporation (Vinacomin) — a Vietnamese state-owned enterprise — for the 440MW Mao Khe Coal-Fired Power Plant Construction Project.

BOC contributed $260 million to the syndicated loan (captured via Record ID#65937).

The Vietnamese Ministry of Finance provided a sovereign guarantee for the loan and Sinosure provided buyer’s credit insurance.

Then, on February 25, 2012, the Export-Import Bank of China issued a buyer’s credit loan worth approximately RMB 200 million for the same project (captured via Record ID#73296).

Sinosure also provided buyer’s credit insurance for this loan.

The proceeds from these three loans were used to partially finance a $429.5 million EPC contract between Vinacomin and China’s KAIDI Electric Power Co. Ltd. signed on July 7, 2009. The total project investment equal to $577 million was financed by 20% equity and 80% debt.

The purpose of the project was to construct a 440MW coali-fired power plant — with two, 220MW power generation units (Unit 1 and Unit 2) — that uses circulating fluidized-bed technology in Bình Khê commune, Đông Triều district, Quảng Ninh province.

KAIDI Electric Power Co. was the main EPC contractor but Wuhan KAIDI Electric Power Engineering Company and WULFF (a German firm) helped implement the project. Construction commenced on July 8, 2009. Unit 1 became operational in October 2012, and Unit 2 became operational in January 2013. On April 12, 2013, the project was officially completed.

Since the plant started operating, residents in nearby Đông Sơn and Xuân Bình hamlets say that their lives have been negatively affected by the plant's operations.

Vu Thanh An, the Party secretary of Đông Sơn, said that the plant had begun dumping pollutants into the Cấm River within days of beginning operations.

Le Ba Cai, a resident of Đông Sơn who lives only 500 meters from the plant, said that strong shaking from the plant's operations had cracked the walls of his house.

Another resident, Ngo Thi Nhi, said coal dust covered her house every day, and that she heard loud explosions each night.