Quảng Ngãi proposes to shut down steel project
HÀ
NỘI - Authorities of the central Quảng Ngãi Province proposed shutting down
the Guang Lian Dung Quất steel project, after inspecting project operations.
On June 6, the provincial
People’s Committee announced its conclusions from its inspection of the use
and management of land assigned to the steel project, as well as from it
reveiw of the process of developing the project, which has acquired total
capital of US$4.5 billion.
The committee said all
conditions to propose ending project operations had been met. It also said
the stop order should go into effect this month, noting it had forwarded its
proposal to the ministries and the central administration to gain the
approval of the government, Tiền phong newspaper reported.
At present, Guang Lian has
not agreed to the proposal and has officially refuted the conclusions of the
public inspection.
According to the investment
agency, the Guang Lian Dung Quất steel project received an investment license
in 2006. The project is located in Dung Quất Economic Zone, Quảng Ngãi
Province, and received initial investment capital of $556 million from the
Tycoons Group of Taiwan.
After many adjustments in
scale and design capacity, in 2008 Tycoons cooperated with E-United Company
from Taiwan to increase the project’s capital to $4.5 billion and the annual
capacity to 7 million tonnes of steel - 5 million tonnes higher than its
initial capacity.
To create favourable
conditions for the project, the management board of the Dung Quất Economic
Zone cleared the site, providing 337ha of land.
In July 2015, Guang Lian
notified provincial authorities it could not secure funding for the project,
stalling operations from mid-2014 to date. By September 2014, the investor
had given $42 million to the project and provincial authorities had advanced
the company VNĐ175 billion for the clearance of project land.
The People’s Committee held
many meetings to discuss ending the project, before proposing a revocation of
the provided land and liquidation of project assets to avoid wasting the
land.
The proposal was made by
Quảng Ngãi authorities after the investor held onto the land for a decade and
had little investment capital to contribute to the project’s development. -
VNS
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Thứ Năm, 9 tháng 6, 2016
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