Equipment of the delayed Tan Mai paper plant in Binh Son district of Quang Ngai province (Photo: VNA) Quang Ngai (VNA) - The central province of Quang Ngai has revoked theinvestment licence of the Tan Mai pulp and paper production plant due todelayed construction and operation and incomplete land-use certificateprocedures as well as poor finance.
The province said the project, which was planned to be built on 45ha in BinhSon district with total investment of 1.95 trillion VND (86.26 million USD)from 2011, had delayed operations of the pulp factory by 52 months and thepaper factory by 40 months.
It said the Tan Mai joint-stock company, the owner of the project, has yet topay land clearance and compensation for local residents, while land-usecertificates for the project had not yet been approved.
The province said the company had not submitted any technical design orconstruction drawings, and only some office buildings and stores had been builton an area of 6,200sq.m.
According to the inspection team from the province, the company had requestedadjustments to their investment licence five times, with an increase of fundsfrom 86.26 million USD to 5 trillion VND (221 million USD). The company couldonly raise a 2.7 trillion VND (119 million USD) loan from the Vietnam Bank forIndustry and Trade in 2011, but only 60 percent of the loan had been disbursedbetween 2011-13. The bank then refused to continue the disbursement for thecompany from 2013.
The province said the investor had not proved their financial capacity to startthe project.
The provincial Department of Planning and Investment reported that the projectimported second-hand and poor equipment that could not meet the demands ofproduction.
The department has completed an inspection to revoke the project nearly sevenyears since it broke ground.
The pulp and paper project was designed with a capacity of 130,000 tonnes ofpulp and 200,000 tonnes of paper each year.
Last year, the province also approved the construction of a paper mill on 85hain Binh Son district – where 50ha of century-old nipa palm forest would becleared for the development of the paper mill.-VNA
The province said the project, which was planned to be built on 45ha in BinhSon district with total investment of 1.95 trillion VND (86.26 million USD)from 2011, had delayed operations of the pulp factory by 52 months and thepaper factory by 40 months.
It said the Tan Mai joint-stock company, the owner of the project, has yet topay land clearance and compensation for local residents, while land-usecertificates for the project had not yet been approved.
The province said the company had not submitted any technical design orconstruction drawings, and only some office buildings and stores had been builton an area of 6,200sq.m.
According to the inspection team from the province, the company had requestedadjustments to their investment licence five times, with an increase of fundsfrom 86.26 million USD to 5 trillion VND (221 million USD). The company couldonly raise a 2.7 trillion VND (119 million USD) loan from the Vietnam Bank forIndustry and Trade in 2011, but only 60 percent of the loan had been disbursedbetween 2011-13. The bank then refused to continue the disbursement for thecompany from 2013.
The province said the investor had not proved their financial capacity to startthe project.
The provincial Department of Planning and Investment reported that the projectimported second-hand and poor equipment that could not meet the demands ofproduction.
The department has completed an inspection to revoke the project nearly sevenyears since it broke ground.
The pulp and paper project was designed with a capacity of 130,000 tonnes ofpulp and 200,000 tonnes of paper each year.
Last year, the province also approved the construction of a paper mill on 85hain Binh Son district – where 50ha of century-old nipa palm forest would becleared for the development of the paper mill.-VNA
VNA
