Green Energy Environment Co Ltd sent on September 12 a document to the Lam Dong Provincial Department of Agriculture and Environment, requesting a temporary suspension of operations at the Dalat solid waste treatment plant from October 1, citing a lack of resources to continue.
According to Green Energy, the waste treatment rate of VND 277,700 (USD 10.70) per tonne is insufficient for the company to keep the plant running. At that rate, the company said it can only cover fuel and workers' wages. Spending on machinery maintenance, repairs to internal roads and employee welfare has largely had to be put aside.
An overview of the Dalat solid waste treatment plant (Photo: Minh Hau).
Green Energy also said that before April 2024, when the treatment rate stood at VND 461,000 (USD 17.70) per tonne, it was able to service its debts, including payments of more than VND 37 billion (USD 1.42 million) to the Lam Dong Province Investment and Development Fund and more than VND 14.5 billion (USD 558,000), in civil judgment enforcement.
Since the rate was cut to VND 277,700 per tonne, the company has lost its ability to repay debts and has been asked by authorities to undergo asset seizure and disposal procedures for debt recovery.
The Dalat solid waste treatment plant was built on a 28-hectare site in Xuan Truong-Dalat Ward in Lam Dong Province.
The plant has been in operation since 2015, with an average processing capacity of 350-370 tonnes of waste a day for the Dalat urban area. It has previously shut down several times and stopped receiving waste because of disputes related to waste treatment pricing.