Deputy Prime Minister Le Minh Khai, Head of the Steering Committee to handle shortcomings and weaknesses of some projects and slow progress and ineffective enterprises in the Industry and Trade sector recently chaired a meeting with the Ministries of Long An province to consider handling the Phuong Nam Pulp Factory project.
According to the Deputy Prime Minister, Phuong Nam Pulp Factory is project the most difficult of the 12 weak projects less loss of the Industry and Trade sector. The handling of the project has lasted for many years. Government leaders have had many meetings and documents to direct the handling of this project… but up to now there is still no definitive solution.
Deputy Prime Minister Le Minh Khai requested the Ministry of Industry and Trade to study and receive appropriate opinions from delegates attending the meeting to update data to further clarify issues related to finance of the project as a basis for completing the report and dossier to propose the most feasible plan in accordance with the provisions of law and submit it to the competent authority for consideration and decision.
Deputy Prime Minister Le Minh Khai also requested the handling This project must closely follow the conclusions of the Politburo and the guiding opinions of the Government leaders to ensure complete and accurate data and information that accurately reflect objective reality.
At the same time, the proposed plan must ensure feasible, maximum recovery of assets, strict, specific, clear, effective, public, transparent, fair among related parties, in accordance with regulations and authority.
It is known that the Phuong Nam Pulp Factory project was authorized by the Prime Minister. Transport Development Investment (TRACODI) became the investor in October 2003 with a capital of more than 1,487 billion VND with a scale of 100,000 tons of pulp/year. In November 2007, TRACODI adjusted the total investment to nearly 2,287 billion VND.
Due to difficulties faced by the investor39965, the Prime Minister decided to transfer the project investor from TRACODI to Vietnam Paper Corporation (VINAPACO). The total capital TRACODI has invested in the project is 2,021,704 billion VND.
In June 2012, VINAPACO basically completed construction, equipment installation and no-load test run. However, the load test failed. VINAPACO continued to adjust the total investment to nearly 3,410 billion VND and found ways to put the project into operation, but the factory could not operate.
VINAPACO also negotiated 3 times to re-sign trial run contract with ANDRITZ Contractor, but ANDRITZ does not commit to ensuring that the test results produce the final product because the contractor’s obligations with the contract to provide equipment and technical services signed with TRACODI have ended.
After a comprehensive review and assessment of the current status of the project, relevant ministries, branches and units found that the project did not achieve its goal, making it unfeasible to put the factory into operation and proposed to the Ministry of Industry and Trade. The Government allowed the project to stop.
In 2014, the Prime Minister agreed to the request of the Ministry of Industry and Trade to stop investing in the project and assigned the Ministry of Industry and Trade to urgently develop a plan to handle the problem. The project has been liquidated and sold… However, up to now the project has not been completely resolved.
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