China Eximbank provides $407.4 million buyer's credit loan for 600MW Quang Ninh 1 Coal-Fired Power Plant Construction Project (Linked to Record ID#65941)

China Eximbank provides $407.4 million buyer's credit loan for 600MW Quang Ninh 1 Coal-Fired Power Plant Construction Project On October 31, 2005, the Export-Import Bank of China and Vietnam Electricity (EVN) — a Vietnamese state-owned power company — signed a loan framework agreement for the 600MW Quang Ninh 1 Coal-Fired Power Plant Construction Project.

Then, on April 1, 2006, China Eximbank and EVN signed a $407,425,533 buyer's credit loan (BCL) agreement (or BLA 06010) for this project.

The loan’s final maturity date was 2021.

The borrower was responsible for making 20 consecutive, semi-annual principal payments to the lender on January 21 and July 21 of each year (after the expiration of the grace period).

EVN on-lent the proceeds of the China Eximbank loan to Quang Ninh Thermal Power Joint Stock Company (QTP JSC), a project company that is jointly owned by EVN (80%), Vinacomin (15%), and Vinaconex (5%).

The proceeds of the loan were to be used by the ultimate borrower to finance (a) 85% ($384,545,100) of the total cost ($452 million) of an EPC contract with Shanghai Electric Group Company Limited, which signed on October 31, 2005; and (b) 85% of the cost of an export credit insurance premium provided by Sinosure.

The loan was also collateralized with specific assets, facilities, and equipment of the Quang Ninh 1 Coal-Fired Power Plant and the Quang Ninh 2 Coal-Fired Power Plant (owned by Quang Ninh Thermal Power Joint Stock Company).

The total collateral value of these items (as of June 30, 2022) was VND 18,790,866,943,157 (equivalent 78.67% of the total value of the mortgaged assets).

The purpose of the project was to construct a 600MW coal-fired power plant — with two, 300MW power generation units (Unit 1 and Unit 2) — in Hà Khánh ward, Hạ Long city, and Quảng Ninh province. Shanghai Electric Group Company Limited was the EPC contractor responsible for implementation. Construction began on April 2, 2006.

Unit 1 was connected to the national grid on May 12, 2009.

It completed a reliability test in March 2010 and it secured a temporary Project Acceptance Certificate (PAC) certificate in July 2011. Unit 2 was connected to the national grid on June 2, 2010. It secured a temporary Project Acceptance Certificate (PAC) certificate in April 2011. Units 1 and 2 began commercial operations on July 1, 2011.