A steel project in south-central province of Ninh Thuan is facing public scepticism due to the recent mass fish deaths caused by Formosa’s pollution incident.
On September 6, Hoa Sen Group’s board of directors approved a decision to invest in a steel manufacturing complex in Ca Na Industrial Zone. Chairman Le Phuoc Vu persuaded other holders that Ca Na coastal area was the most suitable location for the complex. The total capital needed for both steel complex and Ca Na International Port is VND250bn (USD5.5bn) but Vu confirmed was proceeding according to plan.
The Vietnam Foundry and Metallurgy Science and Technology Association chairman Pham Chi Cuong raised concerns that drought in the area was so severe that sheep didn't have enough water so the steel complex could suffer water shortages. But Vu said they could exploit the sea.
On August 1, Hoa Sen Group asked Ninh Thuan’s provincial authorities to prepare clean water as they would need 33,000 cubic metres a day in the first phase and 180,000 cubic metres per day afterwards.
A few days later, the provincial authorities directed the Department of Construction to draft a plan to build water pipes from Phuoc Nam water supply plant to the complex. However, Phuoc Nam only has capacity of providing 30,000 cubic metres a day and still has to provide water to other provinces.
In addition, the drought in Ninh Thuan Province has become more serious in the past years. Many lakes have dried up and the agriculture suffered VND700bn (USD31.39m) in losses last year, 6,000 people lack clean water and over 2,000 sheep died in the first four months of this year.
In the report to Ministry of Industry and Trade, the provincial authorities had listed the scale, investor capacity and benefits from the project but didn't touch on the impact on local lives.
Hoa Sen Group chairman Le Phuoc Vu said that they would use western technology and an American consultant. But its consultant listed on papers is the CISDI Group, a Chinese corporation that helped build important constructions for Hung Nghiep Formosa Ha Tinh. This raised even more concerns with people who worry that there could be a disaster in Ninh Thuan Province like the one in Ha Tinh Province.
However, only the provincial authorities and the Ministry of Industry and Trade have given their approval. The project still needs to be submitted to the Ministry of Natural Resources and Environment, Ministry of Planning and Investment and the Ministry of Finance. Many hope the authorities will have solution to the problem.
