VietNamNet Bridge – A series of thermo and hydro power plant
projects have been going slowly at a snail’s pace because of the lack of
investment capital. Some contractors have even run away from the construction
sites.
Power projects need money to run
Le Quang Hao, General Director of
the Finance and Energy Development Company, the investor of Tr’Hy hydropower
plant in Tay Giang district of Quang Nam province complained that the project
has made no move ahead because of the lack of capital.
Before kicking off the hydropower
plant project, the investor signed the contracts on the project funding with
some commercial banks. However, since early 2011, the economic recession has
badly affected the project implementation. The interest rate climbed to 21
percent per annum, while banks have stopped the disbursement.
“The overly high interest rates
have slowed down the project implementation. Meanwhile, it takes too much time
for the site clearance,” Hao said.
Tr’Hy hydropower project is
capitalized at 763 billion dong. However, to date, only 90 billion dong has
been disbursed.
Dak My 2, Dak My 3 power projects
have also reached a deadlock because of the lack of capital. Nguyen Canh Huong,
the representative of Dak My 2’s investor, said the bank loan interest rates
were overly high, which were unbearable for the investor. However, he has
promised that the investor would accelerate the project implementation, as the
bank loan interest rates have decreased significantly.
The three said power projects
have the expected investment capital of 4 trillion dong. However, only 320
billion dong has been disbursed over the last five years, since the day the
projects got started.
However, local authorities keep a
firm stand that investors have to try to speed up the projects no matter what.
Deputy Chair of the provincial
people’s committee Dinh Van Thu told the investors: “If you find it impossible
to implement projects, you would be better to quit them”.
Nguyen Quang Thu, Director of the
Quang Nam provincial Industry and Trade Department, said if investors want to
continue the projects, they need to make commitments about the project pace and
show the credit contracts signed with commercial banks.
The written commitments must be
submitted to the provincial authorities prior to November 15, which would be
considered by the authorities to make decisions on whether to allow the
investors moving ahead with the projects.
Contractors flee for their lives
Chinese CHMC, which won the bid
to execute the 30 MW Nong Son thermopower plant capitalized at 674 billion dong
and invested by the Vietnam Coal and Mineral Industries Group (Vinacomin),
started the construction in 2008 and promised to finish the work in late 2010.
However, the project has been
left half-done, since the contractor has left, while all Chinese workers have
left Vietnam. It’s because of the lack of capital.
Vo Dinh Dat, Deputy Director of
the Nong Son – Vinacomin Coal and Power Company, said that the financial crisis
has dealt a strong blow on the contractor and forced the group to give up the
project.
Not only hydropower and thermopower
plant projects, a lot of other investment projects in the coastal areas have
been going at a snail’s speed over the last tens of years.
1 USD = 21,000 VND.
Vu Trung
Business & Investment Opportunities
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