ICBC contributes $467.3 million to $1.402 billion syndicated loan for 1200MW Hai Duong Coal-Fired Power Plant Construction Project (Linked to Record ID#65789, #72786, #72788)

China Eximbank, ICBC and CCB contribution to $1.402 billion syndicated loan for 1200MW Hai Duong Coal-Fired Power Plant On October 1, 2015, three Chinese state-owned banks and Jaks Hai Duong Power Company Limited — a project company and joint venture between JAKS Resources (50% ownership stake) and China Power Engineering Consulting Group (CPECC) (50% ownership stake) — signed a $1.402 billion syndicated loan for the 1200MW Hai Duong Coal-Fired Power Plant Construction Project.

The loan has a 25-year maturity (maturing on October 1, 2040).

China Eximbank (Record ID#72786), Industrial and Commercial Bank of China (ICBC) (Record ID#72787), and China Construction Bank (CCB) (Record ID#72788) reportedly each contributed $467.33 million to the syndicated loan.

This $1.912 billion Independent Power Project (IPP) was implemented an Build-Operate-Transfer (BOT) basis and financed with a mix of debt ($1.402 billion) and equity ($510 million). CPECC's $255 million equity contribution is captured in Record ID#65789.

Jaks Hai Duong Power Company Limited also signed a 25-year power purchase agreement (PPA) with off-taker Vietnam Electricity (EVN). The PPA is guaranteed by the Government of Vietnam and a 25-year Coal Supply Agreement with Vinacomin.

The proceeds of the syndicated loan were to be used to partially finance two EPC contracts collectively worth $1.515 billion.

The first was signed on August 3, 2015 with a consortium of CPECC International and SWEPDI, both wholly-owned subsidiaries of CPECC.

The second was also signed on August 3, 2015 with Golden Keen Holdings Limited (GKHL), a wholly-owned subsidiary of JAKS.

The purpose of the project was to construct a 1200MW coal-fired power plant — with two, 600MW power generation units (Unit 1 and Unit 2) — in Phuc Thanh/Quang Trung communes, Kinh Môn district, and Hải Dương province. The project commenced March 27, 2016. Unit 1 was originally scheduled to come online by December 2019, and Unit 2 by June 2020.

However, the project encountered various problems and delays.

In August 2016, provincial officials said that the project was moving too slowly, and they urged Vietnam’s Ministry of Industry & Trade to investigate further. JAKS Resources was reportedly having financial difficulties at the time.

Then, in a report in Báo Pháp luật Việt Nam (Vietnam Law Newspaper) on the dredging of sand for the development of the inland port section of the project questioned whether the project was the 'tip of the iceberg' for illicit removal. On August 2, 2017, concrete was poured for No. 11 boiler foundation of the plant.

Then, in July 2018, it was reported that construction of the plant was 30% complete.

In June 2019, the completion date for Unit 1 was delayed to 2020 and the completion date for Unit 2 was delayed to 2021. On August 7, 2020, the construction of Unit 1 was completed. Unit 1 began commercial operations on November 24, 2020.

However, at that time, Vietnamese media reported that the construction of the project’s slag disposal pit was delayed and not yet complete, posing questions about how the first unit intended to handle its boiler slag and bottom ash. As of February 2020, a permit application for the plant's slag disposal site had not yet been approved.

In May 2020, it was reported that foreign workers for the plant were not being permitted to enter Vietnam from China due to Covid-19-related travel restrictions. The construction of Unit 2 was not yet complete as of April 2021. The second 600MW unit was completed on January 25, 2021, 126 days ahead of schedule.