Hanoi (VNA) - The Vietnam National Oil and GasGroup (PetroVietnam) has decided to form teams to handle its loss-makingprojects since the snail-pace progress of the process has displeased theGovernment.

The decision was announced at a recent meetingbetween the corporation’s heads and representatives of the Ministry of Industryand Trade (MoIT).

The taskforce teams will be responsible for drawing up concrete plans to handleeach project, which include detailed roadmaps, needed mechanisms and policies,and submit them to the corporation’s leaders for further steps.  

The move came just a few days after Deputy Prime Minister Vuong Dinh Hue openlycriticised PetroVietnam for the ineffective handling of unprofitable projects at a meeting with the MoIT and some State-ownedenterprises to seek measures for dealing with 12 loss-making projects, five ofthem at PetroVietnam.

They include three biofuel factories in Phu Tho,Quang Ngai and Binh Phuoc provinces, the PVTex Dinh Vu Yarn Plant and DungQuat ship-building plant.

Of the five projects, the MoIT decided todeclare bankruptcy for the Phu Tho Ethanol Biofuel Plant and Dung Quat ShipBuilding Industry Company.

The MoIT asked PetroVietnam to work with itspartners to restart the Dung Quat ethanol biofuel project in the centralprovince of Quang Ngai and the Dinh Vu yarn plant in the northern city of HaiPhong, then offload the State capital in the two projects.

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For the Binh Phuoc ethanol biofuel project, theMoIT asked PetroVietnam to work with foreign investors to resume the projectbecause it is involved in the replacement of RON92 petrol with E5 biofuelstarting January 1, 2018.

At the meeting, PetroVietnam General DirectorNguyen Vu Truong Son admitted that the handling of these projects yielded noprogress over the past year. “All activities just stopped at holding debates anddiscussion. Almost no work has been implemented,” he said. He attributedthe problem to hurdles in financial mechanisms, particularly the shortage ofmoney.

For example, restarting the Dinh Vu plantrequired a big sum of money, which the company could not secure. Thefinalisation of Engineering, Procurement and Construction (EPC) agreements forthe biofuel factories in Phu Tho and Quang Ngai also required additional bankloans, and this required guidance from MoIT and the Government, he said.

PetroVietnam Deputy Director General Nguyen HuuDung said the corporation had prepared various plans, such as asset auctioningand divestment, but was unable to implement them because it did not get fundsfrom the State.

Deputy Minister of Industry and Trade Hoang QuocVuong, however, reaffirmed that the Government was resolute about not spendingmore money on these projects. He told the companies in charge of the projectsto carry out measures like establishing financial reserve funds, filing forbankruptcy or selling projects to other investors to raise the needed money.

“But top priority should be given to restartingthe projects before divestment. So those which are joint stock companies mustcall shareholders’ meeting to finalise solutions for capital increase and reportto the Government before July 15. In case the Government does not approve thecapital increase solutions, the companies should switch to Plan B of sellingthe projects to other investors,” he said.-VNA