Nam Na 3 Hydropower Plant

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Hung Hai Group was planning the development of the 78 MW Nam Na 3 hydrpower plant, in Lai Chau province, Northern Vietnam. The plant was to be located in the province which also held the Dong Pao mine, producing rare earths required for the Japanese auto industry. Commissioning was expected for second quarter 2014. The EPC contract was awarded to Songda Group, via its subsidiary Song Da 4. Hung Hai Group was developing over 10 other hydro projects. Total cost was estimated at VND2.5 trilion (US$120.2 million). Nippon Export and Investment Insurance (NEXI) arranged and insured the loan in which Aozara Bank, Shizouka Bank, and Nishi-Nippon City Bank, as well as Tokyo-based BNP Paribas Bank participated. Total loan value was US$87.48 million, leaving US$32.7 million in equity financing. Debt/equity ratio was 73/27. Tenor was 13 years. Financial closure date was 20 April 2012. The legal adviser to the lender was Allen & Overy. Vietnam News Brief Service, Industry: Vietnam Group, Japan BNP Paribas sign $87M loan for Hydropower Project, 24 April 2012