Sunday,  Nov 18, 2018,18:49 (GMT+7) 0 0
Hau Giang cancels plan to build husk-fired thermal plant
By Trung Chanh
Wednesday,  Nov 7, 2018,17:00 (GMT+7)

Hau Giang cancels plan to build husk-fired thermal plant

By Trung Chanh

A farmer in the Mekong Delta region is seen collecting rice husk – PHOTO: TRUNG CHANH

CAN THO – The Hau Giang government has decided to cancel a plan to develop a rice husk-fired thermal power plant project, with investment from Hau Giang Power Plant JSC of more than US$30 million, due to prolonged delays.

Vice Chairman of the Mekong Delta province of Hau Giang Nguyen Van Tuan has signed Decision 3905/UBND-KT revoking the license for the project to build the thermal power plant in the province.

Tuan told the Saigon Times today, November 7, that the project, which was scheduled to start in 2010, has been delayed multiple times, resulting in the license being revoked.

“Rice husk was cheap in the past and was even abandoned and discharged into rivers, but Hau Giang Province is now running out of husk as it is widely used for producing charcoal,” Tuan stated, adding that the undersupply of husk is keeping the investor from executing the project.

The plant was expected to be located in Long My Commune, Hau Giang Province, Tuan noted.

The project was slated for construction work by end-December 2013, covering an area of nine hectares and requiring more than US$30 million in funding, supported by EximBank Malaysia and Bank for Investment and Development of Vietnam.

A signing ceremony was held on September 25, 2013, in preparation for the construction of the husk-fired thermal power plant, with various agreements in place, including an engineering, procurement and construction contract; a cooperation agreement between Hau Giang Power Plant JSC and Malaysia-based C.H.E; and a project inspection consulting agreement.

In addition, equipment for the project was expected to be provided by Britain-based Torftech Ltd and ERK EckRohrkessel GmbH in Germany.

According to information published by Vietnam Electricity Corporation on its website, the rice husk-fired thermal power plant project, which was expected to have a capacity of 10MW, was the first project on the agenda of building 20 husk-burning thermal power facilities nationwide, with a combined capacity of 200MW. Of the number, the Mekong Delta region will be home to five, in An Giang, Kien Giang, Hau Giang and Dong Thap provinces and Can Tho City.

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