Gov’t hastens site clearance for petrochemical project
By Quoc Hung - The Saigon Times Daily
HCMC – The central government has urged Ba Ria-Vung Tau Province authorities to hasten site clearance and compensation to make room for the Long Son petrochemical complex project.
Deputy Prime Minister Hoang Trung Hai has ordered local government to join Vietnam National Oil and Gas Group (PetroVietnam) and investors to work on capital allocation for resettlement projects. They are also asked to construct two roads leading to the complex.
In case of capital mobilization hardship, Ba Ria-Vung Tau Province authorities are advised to ask for money in advance from the investors to cover land clearance and compensation expenses and pay back later.
Long Son petrochemical complex project is to be developed by a consortium of Vietnam National Chemical Group (Vinachem) and two Thai partners Vina SCG Chemicals and Thailand Plastics and Chemicals Co., Ltd. (TPC). It was issued the investment license in 2008.
The project initially required total investment capital of US$3.77 billion and had an annual capacity of more than three million tons of products. Covering 400 hectares in Long Son industrial park, the complex, located close to the planned oil refinery No.3, will enjoy advantages in materials transport owing to the available infrastructure system, which will help the investors cut investment and operation costs.
The complex will produce a variety of petrochemical products such as ethylene, propylene and HDPE.
The project had a new investor in February when Qatar Petroleum International (QPI) jumped in, resulting in its registered capital swelling to US$4.5 billion. Under the newly-revised contract, SCG will hold 28% stake, TPC 18% stake while the remainder belongs to QPI Vietnam, a subsidiary of QPI, PetroVietnam and Vinachem.
Under the deal, the petrochemical complex is set to become operational in the next four years.