11/07/2018, 15:31 PM

Ministry of Planning and Investment has refused to consider licensing the Investment Registration Certificate for the project Vung Ang 2 Thermal Power Plant (Ha Tinh) after receiving the proposal from the Company of One Energy Asia Limited 100% capital from Hong Kong (China), this project’s investor.

This decision is made by the planning agencies based on Decree 63/2018, replacing the Decree No. 15/2015 on investing in the form of public-private partnerships. to certify the investment registration of projects in this form; as well as consultation with related ministries and sectors and Ha Tinh province.

Vung Ang 2 thermal power plant has a capacity of 1,320 MW, including 2 units built on an area of over 42 hectares (in Ky Anh district, Ha Tinh). The project is built in the form of Build – Operate - Transfer (BOT).

Studying the project dossiers, Ministry of Planning and Investment also found many points unfix between the dossiers and decisions made previously by the Ministry of Industry and Trade. Specifically, the Decision No.0538 January 28, 2011 enacted by Minister of Industry and Trade (Mr. Vu Huy Hoang – at this period) has not determined the total project investment and duration of implementation.

The point make the authorities to be concerned is the capital of the investor to implement the project. According to the Ministry of Planning and Investment, the capital of the investor and the capital of banks committed to Vung Ang 2 Thermal Power Company Limited is not enough to implement the project. Specifically, the equity required to implement the project is more than VND12,668 billion (US $ 555.5 million), accounting for 25.4% of total investment. However, the company's 2017 financial statement identifies the new investor's equity of $ 26.37 million, it has the same value to 1/21 times the equity requirement of the Vung Ang 2 Thermal Power Project.

Besides that, investors need to mobilize to implement the project is nearly 37,207 billion (over $ 1.63 billion), accounting for 74.6% of total investment. But according to project documents provided to the regulator, the bank committed to lend about $ 900 million at the present.

The area of land used for the project as proposed by the investor is also 8.6 ha more than the figure stated in the decision of the Ministry of Industry and Trade in 2015.

Although the Ministry of Natural Resources and Environment approved the environmental impact report in February 2015, up to now 24 months, the investor has still not implemented. So that, according to the decision of the Law on Environmental Protection 2014, the environmental impact statement has expired, investors have to repeat from the beginning.

For these problems, the Ministry of Planning and Investment requested the Ministry of Industry and Trade and the investor to study the opinions of relevant ministries and agencies in implementing the project in accordance with Decree 63 / Other relevant legislation.

Vung Ang 2 thermal power project was approved by the Government in March 2009, with 3 shareholders of Lilama Corporation (25%), Refrigeration Electrical Engineering Corporation (REE) 23%, One Energy Company (Hong Kong) 30%. The other shares (22%) held by other shareholders. Shareholders established Vung Ang 2 Thermal Power Joint Stock Company (VAPCO) to manage and develop this project. In September 2011, Lilama transferred all of the shares to REE.

A year later, REE bought back shares of other shareholders, raising its stake in VAPCO to 51.55%; The remaining 48.45% belong to One Energy. In 4/2018, REE continued to transfer all of its shares to One Energy and now One Energy holds 100% of VAPCO.

Anh Minh