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The Standing Committee of the Party Committee of Nghe An Provincial People's Committee agreed on the policy of merging 7 irrigation companies.

Thanh Duy DNUM_CDZAEZCACF 09:29

The Standing Committee of the Party Committee of Nghe An Provincial People's Committee agreed on the policy of merging 7 Irrigation One Member Limited Liability Companies in the area into a single company at the meeting on April 22.

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Comrade Le Hong Vinh - Deputy Secretary of the Provincial Party Committee, Chairman of the Provincial People's Committee, Secretary of the Provincial Party Committee chaired. Photo: Thanh Duy

Accordingly, the Standing Committee of the Provincial Party Committee agreed to consolidate the current financial status, assets, capital and labor of 7 companies including: Bac Nghe An Irrigation Company Limited, Nam Nghe An, Tay Bac Nghe An, Tay Nam Nghe An, Thanh Chuong, Tan Ky and Phu Quy.

After the merger, the new entity will be named Nghe An Irrigation Company Limited with a charter capital of over VND3,293 billion. The merged company is responsible for inheriting all rights, legal obligations, debts, labor contracts as well as assets of the old companies. The company will perform the tasks of managing and exploiting irrigation works, irrigation, natural disaster prevention, serving agricultural production, people's lives and other economic sectors in the province.

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Comrade Phung Thanh Vinh - Member of the Provincial Party Executive Committee, Vice Chairman of the Provincial People's Committee gave his comments on the Project to merge 7 Irrigation One Member Limited Liability Companies in the area into a single company. Photo: Thanh Duy

Currently, 7 irrigation companies operate separately according to their locations, leading to resource dispersion and not optimizing operational efficiency. The merger aims to streamline the apparatus, improve management efficiency, service quality, and effectively use human resources and facilities, in line with the socio-economic development orientation of Nghe An province.

This policy closely follows the orientation in Decision No. 33/QD-TTg dated January 7, 2020 of the Prime Minister approving the Irrigation Strategy to 2030, with a vision to 2045. In particular, one of the important solutions is: "Review and arrange enterprises exploiting irrigation works at the provincial and inter-provincial levels, each province shall only establish a maximum of one LLC exploiting irrigation works with 100% state capital".

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Bara Do Luong Dam, Nghe An Province. Photo: Thanh Duy

After agreeing on the policy, the Standing Committee of the Provincial Party Committee will submit it to the Standing Committee of the Provincial Party Committee for consideration and comments. On that basis, the Nghe An Provincial People's Committee will complete the dossier and submit it to the Prime Minister for consideration and decision to allow the merger.

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The Standing Committee of the Party Committee of Nghe An Provincial People's Committee agreed on the policy of merging 7 irrigation companies.
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