The Government Inspectorate has just announced its inspection conclusions regarding problematic projects under the management of the Ministry of Industry and Trade. These include the An Khanh – Bac Giang Thermal Power Plant project and the Na Duong II Thermal Power Plant project.
The agency recommended that the Prime Minister direct the Minister of Industry and Trade, and the chairpersons of Bac Ninh and Lang Son Provincial People's Committees to review and clarify responsibilities for addressing existing shortcomings, flaws, and violations at these two projects. They must also implement measures to thoroughly rectify all issues.
Should any signs of criminal violations be discovered during the process, the Government Inspectorate proposed that the Ministry of Industry and Trade transfer the case files to competent authorities for consideration. The Ministry must also review and amend regulations on electricity generation pricing frameworks for small-capacity and specialized power plants, while increasing inspection, supervision, and timely resolution of difficulties across projects.
The An Khanh – Bac Giang Thermal Power Plant project is invested by An Khanh – Bac Giang Thermal Power Joint Stock Company. Approved with a total investment of 23,600 billion dong and a capacity of 650 MW, the project has experienced delays due to site clearance issues and the investor's capital arrangement.
According to the Government Inspectorate's conclusions, the Ministry of Industry and Trade advised and submitted to the Prime Minister for approval the plant's capacity adjustment from 100 MW to 650 MW. However, the Ministry did not incorporate feedback from relevant agencies, meaning there was insufficient basis to determine the investor's financial capacity.
Competency profiles for some individuals involved in preparing, appraising, and evaluating the feasibility study report did not comply with regulations. Additionally, the planned location for the ash and slag dump violated dike protection corridors.
The investor also lacked sufficient self-funded capital and did not meet the conditions or ratios for government-guaranteed loans. This necessitated a change in loan sources, leading to extended implementation times. An Khanh Company also failed to deposit a guarantee for project execution.
Furthermore, the project was not eligible for land allocation for socio-economic development. Consequently, the provincial government's land acquisition for the project and related decisions were deemed non-compliant with regulations.
The Government Inspectorate determined that the project's delays were the responsibility of the Ministry of Industry and Trade and its affiliated units, such as the General Department of Energy (now the Electricity Regulatory Authority of Vietnam), the Department of Local Industry (now the Department of Innovation, Green Transformation and Industrial Promotion), the provincial People's Committee, departments of Bac Giang province, and the former Luc Nam district.
The Na Duong II Thermal Power Plant project in Lang Son is invested by TKV Power Corporation, a subsidiary of Vietnam National Coal – Mineral Industries Group. The project has a capacity of 110 MW and an investment capital of 4,089 billion dong.
According to the Government Inspectorate, this project exhibited shortcomings and violations during its investment preparation phase. For example, the investor failed to submit investment policy documents for provincial appraisal and decision. The investor also appointed Viet Bac Geological Company – Vinacomin for surveying, despite the company lacking the necessary competency, which was identified as a violation.
Moreover, the investor approved the project without establishing and approving the construction design task. There were also several violations related to the execution of certain bidding packages. Lang Son province approved the Environmental Impact Assessment Report for a 110 MW scale, which did not align with Power Plan VII. The People's Committee and Land Fund Development Center of Loc Binh district, along with the People's Committees of Na Duong town and San Vien commune, handed over land to the investor without prior land allocation or lease decisions from the province.
Phuong Dung
