Phu My 3

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Phu My 3 was a 716.8MW gas-fired combined cycle plant in Ba Ria- Vung Tau province. It was being developed by Phu My 3 BOT Power Co., comprising subsidiaries of the UK's BP, Singapore's SembCorp Utilities and Japan's Kyushu Electric Power Co and Nissho Iwai Corporation (later Sojitz Group). Each sponsor carried a 33.3% stake. Total cost of the project was US$412 million with finance comprising a US$309 million syndicated loan as well as US$103 million of equity. The Asian Development Bank (ADB) provided a US$40 million direct loan and a US$32 million political risk guarantee, while the Multilateral Investment Guarantee Agency (MIGA) provides political risk guarantees totaling US$138 million. The ADB political risk guarantee covered US$32 million of the commercial debt, while MIGA guaranteed US$90 million of the project's commercial debt and swap breakage, as well as US$48 million of equity. The Nexi cover underpined the remaining commercial debt. The ADB loan was repayable within 14 years, including a grace period of up to two years. In addition, Japan Bank for International Cooperation (JBIC) was to provide a US$99 million direct loan and Japan's Nippon Export and Investment Insurance (Nexi) was to extend political risk cover. A syndicate of international commercial lenders was to provide US$170 million of debt underwritten by the five lead arrangers - Bank of Tokyo-Mitsubishi, Credit Agricole Indosuez, Credit Lyonnais, Fortis Bank and Mizuho Corporate Bank. MIGA reported issuing a US$15 million guarantee to Credit Lyonnais (France) towards its swap agreements with the project company, allowing the project to pay a fixed interest rate on loans. The guarantee covers 15 years, and includes: transfer restriction, expropriation, war & civil disturbance, and breach of contract. Earlier, MIGA covered the project with US$43.2 million in equity coverage and US$75 million towards the non-shareholder loan. The combined-cycle gas turbine facility, built by Germany's Siemens AG (SIEGn.DE), was to be fuelled by indigenous gas from BP's partially owned Block 6.1 in the Nam Con Son Basin off the coast of southern province of Ba Ria-Vung Tau. The plant's electricity was to be purchased by electricity of Vietnam (EVN) under a 23 year contract which was signed in 2001. The plant entered operations in March of 2004. In March 2009, Phu My 3 BOT Power Co. made an investment commitment of US$ 10 million for the overhaul, using Siemens technology, which would help increase the electricity generation capacity of the station by 3 to 4%. In January 2012 it was reported that BP sold its share to TNK-BP, from Russia - a merger between BPs Russian assets and Alfa, Access/Renova (AAR) Group, from Russia (50/50). http://www.miga.org/projects/index.cfm?pid=575