The Ministry of Industry and Trade sought approval of the Government to cancel 377 hydropower projects due to environmental concerns and investment obstacles.
Dak Me 3 Dam mishap on November 22
The ministry has sent a report on hydropower planning and investment to the Prime Minister after conducting an inspection that began in December, 2009.
The results showed that many projects were inefficient, causing negative environmental and societal impacts. Many others failed to attracted investors while some found it hard to realise investment due to inconvenient transportation and obstacles in building power transmission lines.
After the investigation provincial authorities across the country agreed to cancel plans for 117 hydropower projects with a combined capacity of 617.65MW. They also cancelled 156 potential sites for construction hydropower plants.
These decisions still await Government approval.
The figures showed an increase of 64 small hydropower projects with a combined capacity of 226.2 MW that were short-listed for cancelling, compared to the ministry’s report by late May.
In addition, the ministry has proposed the Government a plan to scrap an additional 260 small hydropower projects with a combined capacity of 434 MW, along with three locations potential for hydropower plant construction because they failed to attract investors or for low investment potential.
According to the ministry, apart from the projects proposed for cancelling, the country now has a combined 1,110 hydropower projects with a combined capacity of 25,291 MW.
Of the total, 239 have become operational, 217 were under construction, and 294 were under study, expected to become operational between 2015-2020.
The ministry's assessment was that most small-sized hydropower projects are located in areas where poverty is a problem, which, they said, resulted in inefficiency for construction.
Many smaller hydropower projects were compelled to halt or extend their schedule due to capital shortages, partially due to the Government’s limited investment in power grid construction.
In order to ensure efficient investment and growth in power output, the ministry recommended the Government halt or cancel the proposed projects. New investment should be licensed for 102 small-sized projects with a combined capacity of 662.8 MW after 2015.
The PM may direct provincial governments to continue assessing 197 hydropower projects that have yet to be constructed because of their potential effects to the environment and the community or low efficiency or impacts on other planning.
Recently, Deputy Prime Minister Hoang Trung Hai requested that the Ministry of Agriculture and Rural Development to coordinate with ministries and agencies to draft an amendment to Decree 72 on safe dam management. They must submit the draft to the Government for approval in the second quarter of 2013.
Hai assigned the Ministry of Industry and Trade the job of intensifying inspections over dam safety nationwide. Any dams that pose a risk to surround areas would be ordered to stop water hoarding.
