Focus on removing difficulties and promoting the progress of the Quynh Lap 1 Thermal Power Plant Project and Kobelco Sponge Iron Factory

(Baonghean.vn) -This afternoon, December 27, in Hanoi, the delegation of Nghe An province had a working session with the Ministry of Industry and Trade on issues related to the Quynh Lap 1 Thermal Power Plant Project and the Kobelco Sponge Iron Factory in Quynh Luu district.Attending the meeting were comrade Vu Huy Hoang - Member of the Party Central Committee, Minister of Industry and Trade. On the side of Nghe An province, there were comrades: Phan Dinh Trac - Member of the Party Central Committee, Secretary of the Provincial Party Committee; Ho Duc Phoc - Deputy Secretary of the Provincial Party Committee, Chairman of the Provincial People's Committee; Huynh Thanh Dien - Vice Chairman of the Provincial People's Committee and representatives of a number of provincial departments, branches and sectors.

Overview of the working session

On behalf of the provincial leaders, Mr. Ho Duc Phoc - Chairman of the Provincial People's Committee reported to the leaders of the Ministry of Industry and Trade on the situation of industrial production, trade and the implementation of a number of major industrial projects in the province. The Kobelco Sponge Iron Factory project in Nghe An with a capacity of 2 million tons/year, total investment capital of 1 billion USD, invested by Kobe Steel, was approved by the Government and added to the development plan of the Vietnam Steel industry. The project started on July 24, 2010 in Hoang Mai Industrial Park - Quynh Luu District - Nghe An Province. Currently, the project has not confirmed the issue of raw materials and the time of availability of raw materials, so Kobelco has not yet started construction. Kobelco Vietnam's proposal is to contribute capital to Thach Khe Iron Joint Stock Company to exploit and take the initiative in ore.

Quynh Lap Thermal Power Plant Project has a capacity of 2 x 600 MW x 2 clusters = 2400MW. The Government has agreed in principle to assign the Coal and Minerals Group as the investor of Quynh Lap 1 Thermal Power Plant, with a total investment of 1.6 billion USD.

In order for the projects to be implemented, Nghe An province has completed the traffic route to the Power Center area about 12km from National Highway 1A; has started construction of the 35KV power line in Dong Hoi Industrial Park. The Provincial People's Committee has agreed in principle to allow VIP Company to build a water plant with a capacity of 50,000m3/day and night for Hoang Mai Industrial Park and Dong Hoi Industrial Park; Nghe An province has also allocated 220ha of land for the Thermal Power Complex in Dong Hoi Industrial Park; planned to build a coal port for the Thermal Power Company at Dong Hoi Port. On the side of the Coal and Minerals Group, a framework agreement has been signed with the joint venture Doosan (Korea) - Lilama Narime (Vietnam) to implement the FPC package. Completed the investment project documents in August 2012. Construction is expected to start in August 2017.

Minister Vu Huy Hoang speaks at the meeting

At the meeting, the leaders of Nghe An province requested the Ministry of Industry and Trade to propose to the Prime Minister to allow Kobe Steel to participate in the capital contribution of about 20% in Thach Khe Iron Joint Stock Company. Regarding the Quynh Lap Thermal Power Project: allow the addition of electrical diagram 7, start the project in 2014. Urge the Coal and Minerals Group to promptly complete the procedures to start the Quynh Lap I Thermal Power Plant project on schedule according to the Prime Minister's Conclusion announcement.

The Ministry of Industry and Trade supports the policy of calling on a foreign company to conduct research and establish an investment project to start construction soon. In case the Coal and Minerals Group has difficulty in capital and cannot implement the Quynh Lap 1 Thermal Power Plant, the Government proposes to assign the Japanese Energy Corporation to be the investor to build both the Quynh Lap 1 and Quynh Lap 2 Thermal Power Plants. Adjust the project implementation time, so that construction can be started in 2014 or 2015. Nghe An province also requests the Ministry of Industry and Trade to support sugar factories in resolving difficulties to promptly pay for sugar cane when sugar sales are slow, and to support calling for large foreign enterprises to invest in projects in Nghe An.

Nghe An provincial leaders propose recommendations to the Ministry of Industry and Trade

Speaking at the meeting, Minister Vu Huy Hoang emphasized: These are major projects, if implemented, they will create a breakthrough for Nghe An industry. The Ministry of Industry and Trade supports Nghe An province's proposal to assign the Japan Energy Corporation to be the main investor in the construction of both Quynh Lap 1 and Quynh Lap 2 Thermal Power Plants; create conditions for Kobe Steel to participate in contributing about 20% of capital in Thach Khe Iron Joint Stock Company. The Ministry will coordinate with Nghe An province to develop a specific plan to submit to the Prime Minister to remove difficulties for the parties to promote the progress of the above projects, contributing to the socio-economic development of the province. Acknowledging Nghe An province's proposal, the Ministry of Industry and Trade will support sugar exports, remove difficulties for sugar production enterprises in the province, and coordinate with ministries and branches to combat sugar smuggling across the southwestern border.

Thanh Le