A USD114.2 million bio-fuel plant in the northern province of Phu Tho has been left unused for years.
Following the government’s approval on bio-fuel development, many localities nationwide licensed large-scale ethanol production projects.
However, until now, most of the projects are barely operational. Some have seen sluggish construction, while others are on the verge of bankruptcy.
The ethanol project in Tam Nong District, Phu Tho Province, invested by Bio-Petroleum and Petrochemical Joint Stock Company (PVB) is among those. Work on the plant started in 2009 and it was slated for operation in 2012. The 50-ha project had an initial investment of USD1.7 trillion, but later, the figure was raised to VND2.4 trillion.
The USD114.2 million bio-fuel plant in the northern province of Phu Tho has been left unused for years
By late 2011, around 80% of the work was completed as the management building, stores, main production area, waste treatment system and some other facilities were built. However, since then the plant has been at a standstill.
The site is covered by wild grass, while hundreds of tonnes of iron and steel imported from EU, the US, Denmark, Thailand have become rusty. Piles of equipment being covered with canvas have been left in the yard for years.
According to a representative from the Ministry of Industry and Trade, the project delay is attributed to the capital shortage as the investor and its shareholders have not yet reached a consensus on the capital increase. Meanwhile, demand for bio-fuels remains slow.
Many households in Tam Nong District had to give their land to the construction.
Nguyen Dang Luong from Co Tiet Commune said that, “Our land was compulsorily purchased many years ago, but to date, the project has still been delayed. The investor promised to recruit local residents, but this hasn’t happened.”
Phan Van Ngoc, Vice Chairman of Tam Nong District, said that local authorities have requested the investor to continue the project for many times, and had informed provincial leaders of the problem, but to date, no improvement has been seen.
In the related news, Dung Quat Ethanol Plant in the central province of Quang Ngai has had to shut down after just four years due to major losses. Construction on USD90.5 million plant started in September 2009.
