Completed Mixed AidData Chinese Aid

China Eximbank provides $355 million buyer's credit loan for 600MW Quang Ninh 2 Coal-Fired Power Plant Construction Project (Linked to Record ID#65940)

$355.79M USD

Funder	Export-Import Bank of China (China Eximbank)
Recipient Organization	Vietnam Electricity (EVN)
Country	Viet Nam
Start Date	Apr 04, 2007
End Date	Sep 09, 2033
Duration	9,655 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`65941`

Grant Description

China Eximbank provides $355 million buyer's credit loan for 600MW Quang Ninh 2 Coal-Fired Power Plant Construction Project On April 4, 2007, the Export-Import Bank of China and Vietnam Electriity (EVN) signed a $355,793,000 buyer's credit loan (BCL) agreement (BLASH 2007003) for the 600MW Quang Ninh 2 Coal-Fired Power Plant Construction Project.

📋 Loan / Grant Terms

💰 Loan Amountare as follows: a 17-year maturity

📅 Maturity17 years

⏳ Grace Period7 years

💹 Interest Rate5.2532%

The loan’s final maturity date is 2023.

The borrower was responsible for making 20 consecutive, semi-annual principal payments to the lender (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 partially finance a $418 million engineering, procurement, and construction (EPC) contract signed on November 16, 2006 with Shanghai Electric Group Company Limited. Sinosure provided buyer’s credit insurance.

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 3 and Unit 4) — 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 May 28, 2007.

Unit 3 was connected to the national grid on December 13, 2012. It secured a temporary Acceptance Certificate (PAC) certificate on January 1, 2014. Unit 4 was connected to the national grid on September 9, 2013. It secured a temporary Acceptance Certificate (PAC) certificate on March 16, 2014. Units 3 and 4 began commercial operations on June 1, 2015.

📋 Staff Comments

The Vietnamese project title is Dự án Nhiệt điện Quảng Ninh 2. The Chinese project title is 南广宁300MW*2 燃煤火电 or 越南广宁二期项目.
The China Eximbank 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.
In 2006, China Eximbank also issued a $407 million buyer’s credit loan for the Quang Ninh 1 Coal-Fired Power Plant Construction Project (as captured via Record ID#65940).
Evidence of the loan's collateralization ('Hình thức đảm bảo khoản vay: Khoản vay được đảm bảo bằng một số hạng mục công trình, thiết bị của Dự án Nhà máy Nhiệt điện Quảng Ninh 1 và Dự án Nhà máy Nhiệt điện Quảng Ninh 2 với giá trị 18.790.866.943.157 VNĐ tương đương 78,67% tổng giá trị tài sản thế chấp;') is provided ơn pg. 25 of https://cafef1.mediacdn.vn/Images/Uploaded/DuLieuDownload/2022/QTP_22Q2_BCTC_SX.pdf

📚 Sources & References

MỘT SỐ TÌNH HÌNH CỦA CÁC NGÀNH SẢN XUẤT CÔNG NGHIỆP 6 THÁNG ĐẦU NĂM 2010
中国公司承建的越南广宁热电厂动工
Quang Ninh power station
Chào sàn với giá gần gấp đôi giá trị sổ sách
Nhiệt điện Quảng Ninh có gì hấp dẫn?
Sắp lên sàn UpcoM
Nhiệt điện Quảng Ninh còn lỗ lũy kế gần 1.500 tỷ
上海电气电站集团
China's Overseas Development Finance
Deal List: Focus on Energy
Mining and Infrastrcuture
THÔNG TIN TÓM TẮT VỀ TỔ CHỨC ĐĂNG KÝ GIAO DỊCH CÔNG TY CỔ PHẦN NHIỆT ĐIỆN QUẢNG NINH, 2016 Audit Report
中方企业承建的越南火电厂并网发电
Bitter taste when depending on Chinese loans, 2019-08-14 (7), 2022-08-08 (2)
Nhà máy Nhiệt điện Quảng Ninh: Nhiều giải pháp giảm nhiệt nước làm mát 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.