On April 8, 2016, The Energy Pellet Factory project in Quang Binh Province by Dohwa Resource Development Company was granted a registration certificate with a total investment of 240 billion VND (equivalent to 11 million USD) on an area of 3 hectares.
According to the schedule, in phase 1, the project will be operational in Q2/2017, with a maximum capacity of 200,000 tons of pellets per year. In phase 2, construction will commence in Q2/2018, and the project will be completed and put into operation in Q2/2019.
Upon hearing the news, the people in Hon La Economic Zone, Quang Trach District, Quang Binh Province are looking forward to the project starting operation soon so that they can have more job opportunities and develop forest plantations for the factory.
The Energy Pellet Factory project has a total investment of 240 billion VND, but it still hasn’t started construction. Photo: Hai Sam
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After being granted the land, Dohwa Resource Development Company in Quang Binh Province only built a fence around the land, with a 2-story house inside the fence. The area around the house was left with grass growing, eventually becoming a grazing area for livestock and a dumping ground for waste.
According to the Management Board of Quang Binh Economic Zone, in the period 2017-2020, every year this company has requested an extension by requesting an adjustment to the investment policy. In 2021, the company promised to request a final extension and expected to complete the project by December 31, 2022, but there has been no construction activity.
On May 25, 2023, the Management Board of Quang Binh Economic Zone and the company had another meeting to discuss the project implementation. In the meeting minutes, the company committed to put the factory into operation according to the schedule, no later than Q3/2023, and to complete the facility before December 31, 2023.
In case of failure to implement the project, the Management Board will report to the Provincial Party Committee and the Provincial People’s Committee for project revocation as stipulated.
However, up to now, this factory only exists on paper. The 3-hectare area is still used as a grazing area and waste dumping ground for the people in the surrounding areas, and the company has not shown any intention to start construction.
The 3-hectare land area only has a 2-story house. Photo: Hai Sam
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Continued Extension Requests
After several extension requests and slow progress of the pellet factory project in Hon La Economic Zone (Quang Trach District), recently, the Management Board of Quang Binh Economic Zone has submitted a report requesting termination of the project.
In document No. 195/KKT-KHDT dated February 22, 2024, signed by Mr. Hoang Dang Anh, Deputy Head of Quang Binh Economic Zone, it states: The project is behind schedule compared to the adjusted investment registration certificate.
Accordingly, on December 22, 2023, the Management Board of the Economic Zone and Dohwa Resource Development Company had a meeting regarding the progress of the energy pellet factory project in Quang Binh.
After reviewing according to the regulations of the Investment Law and relevant documents, it was found that the progress of the energy pellet factory investment project in Quang Binh is more than 24 months behind schedule, which has been adjusted according to the provisions of Article 41 of the Investment Law.
The factory area has become a dumping ground. Photo: Hai Sam
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At the meeting, the investor requested to further extend the project progress until December 31, 2024.
However, after considering the investor’s proposal, it is not eligible for the above-mentioned adjustment of project progress according to the Investment Law. The Management Board of the Economic Zone will consider terminating the project and report to the competent authority for opinions before implementation.
In the case of project revocation, the investor is willing to carry out the necessary procedures for project termination according to the provisions of the law.
Speaking to VietNamNet, Mr. Nguyen Duc Hien, Chairman of Quang Dong Commune People’s Committee, Quang Trach District, said: “If the Dohwa energy pellet factory starts operation, the people here will have more job opportunities and can grow forest plantations as raw materials for the factory. However, if the project is further extended, it will be a waste of land resources.”
Hai Sam
