PM suspends Ca Na steel plant project proposal

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Báo điện tử CP English - 1 week(s) ago 2 readings

VGP - PM Nguyen Xuan Phuc has ordered to temporarily halt the proposal for the construction of the US$ 10.6-billion Hoa Sen Ca Na steel plant in the south-central province of Ninh Thuan, according to a statement from the Government Office.

The statement from the Government Office quoted PM Phuc as saying that Ninh Thuan faces numerous difficulties, especially following the suspension of a nuclear power plant project.

It is necessary to attract other investors to tap local potentials in favor of socio-economic development. The PM also welcomed investors to Ninh Thuan.

Ninh Thuan has abundant advantages in clean energy (including wind, solar, tourism, organic agriculture), except for steel and nuclear power plants.

Over the past time, the Ministry of Industry and Trade and the Ninh Thuan Provincial People’s Committee have spared no effort to attract foreign investment for the locality's socio-economic development, thus contributing to economic structure transformation and job generation, including Ca Na steel project.

The project is under preliminary evaluation. The preparation was hasty and inadequate. Thus, the PM recommended Ninh Thuan province suspend its proposal for the project.

The locality should make clear domestic and global demand for steel; assess possible environmental effects and technology; and total investment capital.

The requirements aim to prevent a disaster similar to the one caused by Taiwan’s Formosa, he said, adding that the Ca Na project can proceed if studies prove it is viable.

The project should also clarify how it fits the overall development of deep seaports, railways and roads.

The PM noted that the project was proposed after the Formosa scandal, thus making it “very sensitive”.

Earlier, the public voiced concerns that the project, which will produce about 16 million tons of products per year, might harm the environment.

Also, the people worried that the project near the sea could cause damage similar to those caused by Taiwanese steel firm Formosa along the central coast, which resulted in massive fish deaths earlier last year.

The the Ca Na project was planned to be put into operation after five stages between 2017 and 2031. The first stage would begin operation in 2019, take up an area of 240ha, and enable a manufacturing capacity of 1.5 million tons per year./.

By Kim Loan

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