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Vinh Tan 3 (1980 MW)
Location: Vĩnh Tân commune, Tuy Phong district, Bình Thuận province
Estimated cost: USD $2 billion
Status: Planning
Issues with the Complex
Vinh Tan 3 is part of a larger Vinh Tan complex in the Vĩnh Tân commune, Tuy Phong district, Bình Thuận province, Vietnam. The total capacity of this power complex is 6,224MW. This power complex has been highly controversial.
- Vinh Tan-2: This plant has been operational since 2014. Owing to the arid climate and high winds in the area, coal ash from the plant has affected air quality. Many villagers, especially children, have reported respiratory illness and leaks have caused damage to farms. Coolant water from the plant discharged into the sea at high temperature has caused the fish population to decline, affecting the incomes of families dependent on fishing. The station has also affected other local businesses reliant on air and water quality including salt production and shrimp farming, which are significant industries in the province. In April 2015, responding to this serious pollution caused by the plant, hundreds of people in Vĩnh Tân Commune took to the streets, blocking the national highway for two days to prevent trucks from transporting coal slag to the cinder dump.
- Vinh Tan-1: dredging to create a channel for waste transportation has caused significant concern because it would harm Hòn Cau Marine Protected Area and affect marine resources. The video below details these threats.
Who’s Involved?
Sponsors
- OneEnergy Ventures Limited 49% (joint venture between Hong Kong-based CLP Holdings and Diamond Generating Asia (DGA), a subsidiary of Japan’s Mitsubishi Corp] . Update: (CLP announced its withdrawal from coal power in 20197, Mitsubishi Corp announced its withdrawal from the project in February 20218)
- Electricity of Vietnam Group (EVN) 29%
- Thai Binh Duong Group (Pacific Corp) 22%
- SPV: Vinh Tan 3 Energy Joint Stock Company (VTEC)
Advisors
- Legal – Lenders: Shearman & Sterling
- Legal – Sponsors: Linklaters
Lenders
- China Development Bank (Lead Arranger)
- Bank of Communications
- ICBC
- China Construction Bank
- Bank of China
aEPC
- Harbin Electric
- Energy China Engineering Group Guangdong Power Engineering Co.
References
- Alexandra Dockreay, IJGlobal (28 Jan 2020) ‘HSNC walks away from Vietnam coal-fired mandate’
- Mia Tahara-Stubbs, IJGlobal (18 July 2017), ‘DBS drops out of Vinh Tan 3 coal-fired bank syndicate’
- Mia Tahara-Stubbs, IJGlobal (2 June 2017), ‘Vinh Tan 3 coal-fired sets sights on term sheet form agreement’
- Baron Laudermilk, IJGlobal (8 March 2017) ‘Financial Close Q3 2017, Vinh Tan 3 coal-fired plant’
- Climate Policy Initiative (2016), ‘Slowing the Growth of Coal Power outside of China’
- BMI Research (2016), ‘Vietnam Power Report – 2016 Q4’
- Ha Tim, Eco Business. (19 December 2019). ‘Hong Kong Power Giant CLP Quits Coal‘
- Reuters. (26 February 2021). ‘Mitsubishi pulls out of Vinh Tan 3 coal project in Vietnam‘
Information updated: 14 February 2021
In addition to the references noted above, Market Forces also considers information from financial journals, companies’ public disclosures, and news reports.