Delayed by Planning Issues: The Case of Wind Power Projects in Dak Nong
On November 7, Mr. Tran Dinh Ninh, Director of the Department of Planning and Investment of Dak Nong province, stated that the obstacles facing the wind power projects in the region have not been entirely resolved. The provincial authorities are eager to see these projects operational, but their hands are tied until they receive clearance from the central government.
Previously, the People’s Committee of Dak Nong province had reported to the central government, requesting the Prime Minister to address the challenges and obstacles faced by the wind power projects. According to the province, there are five wind power projects in development, including the Nam Binh 1 Wind Power Plant, which has already been completed (with a total investment of over VND 1,000 billion), and the Dak N’Drung 1, 2, and 3 Wind Power Plants, which have invested VND 5,800 billion out of the planned VND 10,525 billion (55% of the total investment). The Asia Dak Song 1 Wind Power Project has not yet started construction (with a total investment of approximately VND 1,693 billion).
The reason for the stagnation of these five projects is due to planning issues related to bauxite exploration, which has hindered the completion of land and construction procedures. In 2023, the Government Inspectorate (GI) identified a series of violations associated with six wind power projects in Dak Nong, including the five mentioned above.
An idle wind turbine in Dak Nong province, awaiting operation
The GI’s findings revealed that in 2020, the People’s Committee of Dak Nong province issued decisions approving the investment proposals for six wind power plants, including Nam Binh 1, Dak Hoa, Asian Dak Song 1, and Dak N’Drung 1, 2, and 3. However, the land designated for these projects had not been zoned for energy infrastructure development.
Notably, 5 out of 6 wind power projects were leased land by the People’s Committee of Dak Nong province, totaling nearly 65 hectares. This land falls within the scope of the Master Plan for Bauxite Exploration, Mining, Processing, and Utilization for the period 2007-2015, with a vision towards 2025, which had previously been approved by the Prime Minister.
In Kon Tum province, Mr. Le Nhu Nhat, Director of the Department of Industry and Trade, shared that there are two approved wind power projects facing similar challenges and obstacles, hindering their operation. Moving forward, the department will continue to review and update these projects to ensure a total capacity of 154MW allocated to the region.
The GI’s conclusions also highlighted violations in the approval of investment proposals, land leasing for project implementation, as well as in the commencement, acceptance, and commercial operation of the wind power plants in Dak Nong province.
Notably, the Nam Binh 1, Dak Hoa, and Dak N’Drung 1, 2, and 3 wind power plants commenced construction before the land use rights were granted by the People’s Committee of Dak Nong province. Furthermore, the Nam Binh 1 Wind Power Project began construction without the approval of the technical design evaluation results by the Department of Electricity and Renewable Energy, under the Ministry of Industry and Trade.
The GI has recommended that the People’s Committee of Dak Nong province and the Ministry of Industry and Trade take disciplinary action against individuals and organizations involved in these violations. Additionally, they have proposed that the Prime Minister instruct the Ministry of Public Security to receive relevant documents and investigate the management and use of land intended for wind power projects, which overlap with bauxite-zoned areas.
According to a leader of Dak Nong province, since the implementation of these wind power projects, there have been two overlapping planning issues. The project sites are located within the Dak Song and Tuy Duc mine areas, spanning 47,200 hectares, which have not yet been licensed for mining. However, the land required for the wind power projects accounts for only a small fraction (approximately 0.17%) of the total area.
The land allocated for substations, transmission lines, and turbine locations is also insignificant and does not substantially impact bauxite reserves. Moreover, the construction of wind power infrastructure does not lead to mineral resource losses, and there has been no illegal mining, transportation, or trading of bauxite.
The provincial leader estimates that upon completion, these five projects will contribute approximately 380MW to the national grid and generate approximately VND 200 billion in tax revenue annually (from value-added tax).
Given that Dak Nong is a poor province facing economic challenges, the timely completion of these wind power projects is crucial for achieving its socio-economic development goals. The province has requested the Prime Minister’s attention and consideration to address these difficulties and prevent resource wastage.
Inadequate Competence in Gia Lai
Turning to Gia Lai province, the Government Inspectorate recently issued Conclusion No. 263 regarding the inspection of the provincial People’s Committee’s responsibilities in land management and use, involving agricultural and forestry land, as well as sand, soil, and stone exploitation, and investment construction management from 2016 to 2020.
The inspection uncovered violations in five wind power projects in the province. For instance, the Hung Hai Gia Lai Wind Power Project, invested in by the Hung Hai Gia Lai Wind Power Joint Stock Company, was approved by the provincial People’s Committee on September 8, 2020, to be located in three communes of Kong Chro district, with a capacity of 100MW and a total investment of over VND 3,700 billion. However, the inspection found that the Department of Planning and Investment did not organize an evaluation of the financial capacity of the Hung Hai Gia Lai Company. Despite the investor not meeting the financial capacity requirements (with no documents proving equity capital equivalent to 20% of the total investment of the project), the department advised the provincial People’s Committee to issue Decision No. 464 approving the investment proposal, which is a violation of legal regulations.
Notably, the project site was not located in the communes specified in the Prime Minister’s approval document. However, the provincial departments still approved the adjustment of the investment proposal and supplemented the area of the three communes without seeking the Prime Minister’s opinion.
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