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Ministry rejects Vung Ang 2 thermal power project
The Saigon Times Daily
Friday,  Jul 6, 2018,17:18 (GMT+7)

Ministry rejects Vung Ang 2 thermal power project

The Saigon Times Daily

HCMC – The Ministry of Planning and Investment has written to the Ministry of Industry and Trade, OneEnergy Asia Limited and Vung Ang Thermal Power Co., Ltd, refusing to grant an investment certificate to the Vung Ang 2 thermal power project as conditions have not been met, news website VnEconomy reported.

According to Government Decree 63/2018/ND-CP on public-private partnership (PPP) investment, authorities shall not issue investment certificates for projects executed under the PPP model, said the ministry.

In addition, many conditions for the project, including investment capital, land, and environment impact assessment have not been met, according to the ministry.

The investor had earlier proposed using 94.6 hectares of land for the project, which is not in line with the Ministry of Industry and Trade’s decision to allocate only 86 hectares of land for the project.

The project’s environment impact assessment report was approved by the Ministry of Natural Resources and Environment over two years ago, which is no longer valid. As a result, the investor has to prepare another environment impact assessment report for the project in accordance with the 2014 Law on Environment Protection.

As for the investment, the State capital and loans that banks pledged for the project are not sufficient.

The investor's equity needed for the project is set at VND12.7 trillion, equivalent to US$555.5 million and 25.4% of the total investment. However, according to OneEnergy Asia’s financial report, the equity was only US$26.37 million as of last year.

Besides this, banks have offered only US$900 million out of the VND37.2 trillion, or US$1.6 billion, needed for the project.

The Ministry of Planning and Investment has asked the Ministry of Industry and Trade and the investor to consider the comments of the relevant ministries and agencies on the project and existing regulations to execute the project in line with Decree 63/2018/ND-CP and related legal documents.

OneEnergy Asia on May 15 applied to the Ministry of Planning and Investment for an investment certificate for the Vung Ang 2 thermal power project, which consists of installing two 600MW generators and requires a total investment of US$2.2 billion.

Three days later, the ministry consulted the Ministries of Science and Technology, Justice, Natural Resources and Environment, Industry and Trade, Finance and Construction, as well as the State Bank of Vietnam and the Ha Tinh government about the project.

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