Inspectorate raises responsibility of the Ministry of Industry and Trade in the An Khanh - Bac Giang Thermal Power Plant Project

The Government Inspectorate has just issued Notice No. 3439/TB-TTCP Notifying the Inspection Conclusion of projects with difficulties and problems under the management of the Ministry of Industry and Trade.

In particular, the An Khanh - Bac Giang Thermal Power Plant Project is a group A project, a level I industrial project invested by An Khanh - Bac Giang Thermal Power Joint Stock Company (An Khanh Company); the project location is in Dam village, Cam Ly commune, Bac Ninh province (formerly Vu Xa commune, Luc Nam district, Bac Giang province). The project was approved with a total investment of VND 23,601,729.416 million.

Through the inspection process, the Government Inspectorate determined:

The People's Committee of Bac Giang province and the Ministry of Industry and Trade have advised the Prime Minister to assign An Khanh Company as the investor to implement the Project under the form of an independent IPP power plant when the Company has just come into operation, has no experience or capacity to implement the Thermal Power Plant Project, and does not have enough financial capacity to implement the Project.

This is one of the reasons why the implementation of the Project is facing difficulties, including difficulties in arranging and arranging capital sources for investors.

The Ministry of Industry and Trade advised and submitted to the Prime Minister for approval to increase the capacity of the Project from 100MW to 650MW while not accepting the opinions of relevant agencies on the increase in capacity, the scale of the Project is unnecessary and does not have enough basis to determine the financial capacity of the Investor to implement the Project.

The capacity profile of some individuals participating in preparing, examining, and appraising the Feasibility Study Report is not in accordance with the provisions of Clause 4, Article 148 of the 2014 Construction Law; 2 experts participating in preparing the EIA Report do not have a consulting certificate as prescribed.

The planned location of thei Bai Ac (area 47.94 ha) of the Project violates the dyke protection corridor; the planned location of the warehouse and port area (area 14.68 ha) of the Project is within the dyke protection corridor, and construction is not allowed.

Investors do not have enough capital to have their own capital, do not meet the conditions and rates to borrow capital with Government guarantees according to regulations.

The An Khanh - Bac Giang Thermal Power Plant Project is not allocated land for socio-economic development, the establishment of Vu Xa Industrial Cluster by the People's Committee of Bac Giang province to reclaim land for the An Khanh Project is a violation of the provisions of Article 62 of the 2013 Land Law.

The implementation of the Project is too slow compared to the completion progress (2023) approved in Decision No. 06/QD-UBND dated January 3, 2017 of the People's Committee of Bac Giang province and the progress is extended (until December 2025) according to Decision No. 648/QD-UBND dated June 21, 2023 of the People's Committee of Bac Giang province.

"The responsibility for the above-mentioned shortcomings, defects and violations belongs to the Ministry of Industry and Trade, some units under the Ministry: General Department of Energy (now the Electricity Department), local Department of Industry (now the Department of Innovation, Green Transformation and Public Encouragement); Provincial People's Committee, Department of Planning and Investment, Department of Natural Resources and Environment, Department of Agriculture and Rural Development, Department of Industry and Trade, Department of Construction of Bac Giang province, People's Committee of Luc Nam district, Department of Taxation of Bac Giang province (now Bac Ninh province); Project investors and related organizations and individuals from each period" - the Inspection Conclusion Notice stated.

The Government Inspectorate recommends that the Ministry of Industry and Trade, according to its functions, tasks, authority, organize and direct the implementation of reviews and handling of responsibilities according to regulations for collectives, individuals, organizations and units at each period related to the shortcomings, defects and violations; direct the focus on handling and thoroughly overcoming the shortcomings, defects and violations mentioned in the Inspection Conclusion.

During the implementation process, if signs of violating criminal law are detected, they will be transferred to the competent authority for consideration and handling according to regulations.

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