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Home › Dodgy Deals ›
Dodgy Deal
Vinh Tan III coal power plantVietnam

Project – On record

This profile is no longer actively maintained, with the information now possibly out of date
Contact:

climate@banktrack.org

Last update: 2019-08-15 10:51:46
Vietnamese campaigners, in background Vinh Tan complex. Photo: 350.org

Project – On record

This profile is no longer actively maintained, with the information now possibly out of date
Contact:

climate@banktrack.org

Last update: 2019-08-15 10:51:46
Why this profile?

Why this profile?

The planned Vinh Tan III coal power plant will negatively impact local people and the environment. Local livelihoods and the population's health are already negatively affected by the existing power plants, and the situation would worsen with the construction of a new power plant. Vinh Tan III will also massively contribute to climate change by emitting over 11 million tonnes of CO2 each year.

What must happen

The Paris Climate Agreement goals require a managed decline of fossil fuel production, and the construction of new coal fired power plants is not compatible with this. Banks must therefore immediately stop financing new coal-fired power plant developments anywhere in the world.

About
Sectors Coal Electric Power Generation
Location
Status
Planning
Design
Agreement
Construction
Operation
Closure
Decommission
This project has been identified as an Equator Project

The Vình Tân III thermal coal power plant is part of a planned four unit power center in the Vình Tân, Bình Thuận province of Vietnam. lt will generate up to 12 billion kilowatt-hours annually, from three supercritical 660MW units which will be fueled with imported anthracite (hard coal). In 2008, the project's sponsor, OneEnergy, a joint-venture between CLP Group and Mitsubishi Corporation, signed a USD 1.1 billion contract with Electricity of Vietnam (EVN) to build the plant, beginning construction in 2010. Due to new Build, Operate and Transfer (BOT) regulations, the contract between the project sponsor and the government could not be signed until October 2015. The project is expected to cost USD 2 billion.

The energy centre at Vinh Tan consists of four units which are independent from each other, financially as well as operationally:

  • Vinh Tan I: the construction of the two-unit 1,200MW power plant has reached completion. The first unit was commissioned in June 2018. The second unit has undergone successful test operations in January 2019;
  • Vinh Tan II: both units of the supercritical 1,245MW plant have been online since 2014;
  • Vinh Tan IV: both units of the fourth supercritical 1,200MW power plant are online. The first unit was completed in December 2017 and the second in October 2018;
  • Vinh Tan IV Extension: in 2016, it was announced that the fourth complex would be extended for another 600MW unit. The plant conducted successful test operations in April 2019 and is scheduled to be commissioned in October 2019.
Impacts

Social and human rights impacts

Local communities already suffer from ash and fumes that are blown into their neighbourhoods from the existing units of the Vinh Tan energy centre. Local people report that the ash penetrates living spaces, sets on surfaces and makes people cough. Restaurant owners complain that rice dishes turn black when put on the table. The loss of marine life also affects local fishermen, aquaculture and tourism.

In April 2015 local residents blocked the main highway for several hours to protest against the immense impacts on livelihoods and health due to pollution and the transportation of ash in uncovered lorries. Local authorities urged the operator to mitigate pollution and imposed a fine of around VND 1.5 billion (USD 69,510). Contrasting the protest and authorities' request to mitigate pollution, lorries were re-directed to smaller streets, the dumping sites were covered with canvas to prevent dispersion but dumping still continued and locals have reported that pollution got worse. Responsible for this increased pollution is Vinh Tan II which came into operations in 2014. Filters to absorb dangerous elements from the fumes are still not implemented sufficiently and pollution control is by officials of industrial zones generally considered too expensive.


Environmental and climate impacts

The Vinh Tan III project will be responsible for emitting over 11 million tonnes of CO2 each year. Coal for the plant will be imported via a deep sea port and there are concerns that the construction of the port, delivery of coal by large vessels, dumping of ash waste and the discharge of cooling water will endanger aquatic life. In addition the relocation of coral from the shore of Vinh Tan to the Hon Cau Marine Protected Area (MPA) off shore, disturbs the aquatic ecosystem and the diversity of marine life severely. The construction of Vinh Tan III will increase this threat to the marine ecosystem.

Waste disposal from the plant presents additional alarming impacts. Initially, waste from Vinh Tan II was stored in open pits, until locals protested and the pits were covered. In November 2016 the plant’s operator requested permission to dump 1.5 million cubic metres of industrial waste into the MPA, arguing that it was only "natural sediment", although this was challenged by scientists and the Hon Cau MPA itself.

Water intake (millions of cubic meter per year) for the entire Vinh Tan power centre is likely to harm marine lives such as fish, shrimp and crabs, fish eggs and larvae. The destruction is twofold: these marine lives can be trapped on the intake screen or sucked through plants’ heat exchanger.

Financiers

HSBC is the financial advisor for the USD 2 billion project, with China Development Bank being the lead arranger of the financiers.

Institution type
Finance type
Year

DBS dropped out of Vinh Tan III coal-fired bank syndicate in July 2017.

In December 2019, Standard Chartered withdrew its financial support for this Dodgy Deal. In 2018, Standard Chartered stated that it would no longer finance new coal-fired power plants anywhere in the world, unless a commitment was already made to a project. One of these projects was Vinh Tan III. In 2019 the bank confirmed it would withdraw from this project, thereby closing the loopholes in its 2018 policy.

In January 2020 HSBC announced its withdrawal from the Vinh Tan III coal power plant project (Ecobusiness.com).

Companies

Project sponsor

Vinh Tan 3 Energy Joint Stock Company (VTEC)

Vietnam
No companies

Other companies

CLP

Hong Kong
Website

Harbin Electric

China
Website
EPC

Mitsubishi

Japan
Website

OneEnergy Ventures Ltd.

Hong Kong
Website
49% owner of VTEC. OneEnergy Ventures is a 50:50 joint venture between CLP Holdings and Diamond Generating Asia, a subsidiary of Japan’s Mitsubishi Corp.

Pacific Ocean Engineering Joint Stock Company

Vietnam

Thai Binh Duong Group

Vietnam
22% owner of VTEC

Vietnam Electricity (EVN)

Vietnam
Website
29% owner of VTEC
No companies
Governance
Norms & standards

Applicable norms and standards

Equator Principles
News
BankTrack
Partners
Blog
External
BankTrack news BankTrack blog Partner news Partner blog

Mitsubishi withdraws from Vietnam coal plant due to climate concerns

2021-03-04 | Pinsent Masons
BankTrack news BankTrack blog Partner news Partner blog

HSBC exits Vinh Tan 3 coal power project in Vietnam

2020-01-24 | Eco-Business
BankTrack news BankTrack blog Partner news Partner blog

Leading NGOs urge Vietnam to scrap new coal-fired power projects

2020-01-02 | VN Express
BankTrack news BankTrack blog Partner news Partner blog

Standard Chartered tries to have it both ways on coal

2019-01-21 | Asia Times
Blog
BankTrack news BankTrack blog Partner news Partner blog

Major banks are failing Vietnam by violating Equator Principles commitments in financing coal power projects

2018-10-11 | Market Forces
Blog
BankTrack news BankTrack blog Partner news Partner blog

One step beyond coal - New policy move from Standard Chartered welcomed

2018-09-25 | Nijmegen, the Netherlands | BankTrack
Blog
BankTrack news BankTrack blog Partner news Partner blog

HSBC and Standard Chartered accused of “rank hypocrisy” for financing of highly polluting coal projects whilst publicly supporting Paris Climate Agreement

Two major British banks are helping to finance coal-fired power stations that will emit more carbon dioxide than the annual emissions of 69% of the world’s countries, a new Global Witness report reveals
2018-07-23 | London | Global Witness
BankTrack news BankTrack blog Partner news Partner blog

Coal turns up heat on Standard Chartered

2018-07-23 | The Times
BankTrack news BankTrack blog Partner news Partner blog

Standard Chartered wants to fund dirty coal-fired power stations in Vietnam

2018-06-14 | Market Forces
Blog
BankTrack news BankTrack blog Partner news Partner blog

Powering past coal? Top UK banks are passing the buck

2018-05-24 | BankTrack
BankTrack news BankTrack blog Partner news Partner blog

Standard Chartered raises security ahead of annual meeting

2018-05-03 | Financial Times
Blog
BankTrack news BankTrack blog Partner news Partner blog

HSBC moves on tar sands, but fails the coal test

2018-04-20 | Nijmegen, the Netherlands | BankTrack
Blog
BankTrack news BankTrack blog Partner news Partner blog

Smoke and mirrors - world's top banks on notice to slash support for coal power development

2018-04-05 | Greig Aitken – BankTrack
BankTrack news BankTrack blog Partner news Partner blog

Vietnam considers lowering environmental standards on treatment of ash, slag

2017-09-26 | Vietnamnet
BankTrack news BankTrack blog Partner news Partner blog

Asia's coal-fired power boom 'bankrolled by foreign governments and banks'

2017-07-20 | The Guardian
BankTrack news BankTrack blog Partner news Partner blog

DBS drops out of Vinh Tan 3 coal-fired bank syndicate

2017-07-18 | IJGlobal
BankTrack news BankTrack blog Partner news Partner blog

More power plant waste threatens marine reserve in central Vietnam

2017-07-09 | VN Express International
BankTrack news BankTrack blog Partner news Partner blog

Coal-fired power plants pose high risk of environmental pollution

2017-07-08 | Vietnamnet
BankTrack news BankTrack blog Partner news Partner blog

Sea near Binh Thuan in danger as thermal power discharges sludge

2017-07-07 | Vietnamnet
BankTrack news BankTrack blog Partner news Partner blog

Many power companies to go public

2017-06-20 | Vietnamnet
BankTrack news BankTrack blog Partner news Partner blog

Vinh Tan 3 coal-fired sets sights on term sheet form agreement

2017-06-02 | IJGlobal
BankTrack news BankTrack blog Partner news Partner blog

Foreign banks divided on best approach to financing China’s US$5 trillion new Silk Road project

2017-05-28 | South China Morning Post
BankTrack news BankTrack blog Partner news Partner blog

Coral reefs relocated en masse for vinh tan power project

2017-02-22 | Vietnamnet
BankTrack news BankTrack blog Partner news Partner blog

Vinh Tan 3 coal-fired financing goes to market

2017-02-01 | IJGlobal
BankTrack news BankTrack blog Partner news Partner blog

The blacklist: Vietnam names and shames projects with high pollution risks

2016-10-21 | Vnexpress
BankTrack news BankTrack blog Partner news Partner blog

Expert warn of over-reliance on coal power

2016-07-13 | Vietnamnet
BankTrack news BankTrack blog Partner news Partner blog

Plans for coal-fired power in Asia are 'disaster for planet' warns World Bank

2016-05-05 | The Guardian
BankTrack news BankTrack blog Partner news Partner blog

$1tn could be wasted on 'unneeded' new coal plants, report warns

2016-03-30 | The Guardian
BankTrack news BankTrack blog Partner news Partner blog

Mitsubishi and Doosan win Vietnam coal power

2016-03-11 | IJGlobal
BankTrack news BankTrack blog Partner news Partner blog

Vinh Tan power plant still polluting residential areas

2016-02-13 | Vietnamnet
BankTrack news BankTrack blog Partner news Partner blog

Pollution at Vietnam power plant persists despite public outcry

2016-01-27 | Thanhnien News
BankTrack news BankTrack blog Partner news Partner blog

Comment: Vietnam’s coal decision is the Paris Agreement in action

2016-01-15 | Unearthed
BankTrack news BankTrack blog Partner news Partner blog

Vinh Tan 1 thermal plant construction starts in central VN

2015-07-20 | Vietnam News
BankTrack news BankTrack blog Partner news Partner blog

Vietnam's Dirty Growth

2015-06-23 | Thanhnien News
BankTrack news BankTrack blog Partner news Partner blog

Vietnam orders coal power plant to reduce pollution following 30-hour protest

2015-04-23 | Thanhnien News
BankTrack news BankTrack blog Partner news Partner blog

New regulations cloud BOT power plant deals

2015-04-17 | Vietnamnet
BankTrack news BankTrack blog Partner news Partner blog

Vietnam orders power plant to clean up after angry protest

2015-04-16 | Hanoi | The Sun Daily
Resources
Documents
Links
2018-11-08 00:00:00

Letter from Standard Chartered to BankTrack on new coal policy and Fossil Banks, No Thanks! demands

Correspondence
2018-11-08 00:00:00 | Standard Chartered
2018-06-04 00:00:00

Briefing Renewable energy news in the media

May 29 - June 4 2018
Other document
2018-06-04 00:00:00
2014-06-23 00:00:00

Law on environmental protection

Other document
2014-06-23 00:00:00 | The National Assembly of Vietnam
2016-06-30 00:00:00

Synthesis Report on Socio-environmental Impacts of Coal and Coal-red Power Plants in Vietnam

NGO document
2016-06-30 00:00:00 | GreenID, CleanED, Vietnam Sustainable Energy Alliance
2017-03-15 00:00:00

Burden of Disease from Rising Coal-Fired Power Plant Emissions in Southeast Asia

NGO document
2017-03-15 00:00:00 | Environmental Science & Technology

Vietnam Marine Protected Area under Threat from a Coal Plant

Vinh Tan power station profile on Sourcewatch

Vinh Tah 3 profile on CARMA

Market Forces - Vinh Tan 3 profile

GreenID Vietnam

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Raiffeisen Out! Bank.Green End Coal Finance Plastic Banks Tracker Defund TotalEnergies Financial Exclusions Tracker Equator-Complaints.Org Don't Buy into Occupation Banks & Biodiversity Forests & Finance Drop JBS StopEACOP Fossil-Free Finance
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