Location: Vĩnh Tân commune, Tuy Phong district, Bình Thuận province

Estimated cost: USD $2 billion

Vinh Tan 4 and the Vinh Tan 4 expansion are slated be in service by 2019.

Financial close expected: Mid-2017 

Status: Planning

Completion expected: 2019

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?

  • OneEnergy Ventures Limited [a 50:50 joint venture between Hong Kong-based CLP Holdings and Diamond Generating Asia (DGA), a subsidiary of Japan’s Mitsubishi Corp] 49%,
  • Electricity of Vietnam Group (EVN) 29%
  • Thai Binh Duong Group 22%
  • SPV: Vinh Tan 3 Energy Joint Stock Company (VTEC)
  • Financial: HSBC
  • Legal – Lenders: Shearman & Sterling
  • Legal – Sponsors: Linklaters
  • China Development Bank (Lead Arranger)
  • HSBC
  • Standard Chartered
  • Bank of Communications
  • ICBC
  • China Construction Bank
  • Bank of China
Harbin Electric

References

  1. Mia Tahara-Stubbs, IJGlobal (18 July 2017), ‘DBS drops out of Vinh Tan 3 coal-fired bank syndicate’
  2. Mia Tahara-Stubbs, IJGlobal (2 June 2017), ‘Vinh Tan 3 coal-fired sets sights on term sheet form agreement’
  3. Baron Laudermilk, IJGlobal (8 March 2017) ‘Financial Close Q3 2017, Vinh Tan 3 coal-fired plant’
  4. Climate Policy Initiative (2016), ‘Slowing the Growth of Coal Power outside of China’
  5. BMI Research (2016), ‘Vietnam Power Report – 2016 Q4’

Information updated: 20 February 2018

In addition to the references noted above, Market Forces also considers information from financial journals, companies’ public disclosures, and news reports.