Da Nang abandons investment plan for 1,000 tons/day solid waste treatment plant

Da Nang abolishes investment policy for 1,000 tons/day solid waste treatment plant project

This is a project expected to be invested in the form of PPP, proposed by the investor and approved by the City People's Council in Resolution No. 333/NQ-HDND dated December 9, 2020.

With 37/49 delegates present at the meeting in favor (accounting for 74%), the Da Nang City People's Council passed a Resolution to cancel the investment policy of the 1,000-ton/day solid waste treatment plant project. Photo: Linh Dan

On the morning of February 20, with 37/49 delegates present at the meeting in agreement (accounting for 74%), the People's Council of Da Nang City passed a Resolution to cancel the investment policy of the 1,000-ton/day solid waste treatment plant project at the Da Nang City Solid Waste Treatment Complex under the PPP form proposed by the investor, which was approved by the People's Council of the City in Resolution No. 333/NQ-HDND dated December 9, 2020.

According to the City People's Council's Proposal on the cancellation of the investment policy for the 1,000-ton/day solid waste treatment plant project under the PPP model proposed by the consortium of investors, the reason for the cancellation is that the project's Feasibility Study Report has not been approved by the Chairman of the Da Nang City People's Committee due to some unsatisfactory contents: the proposed area for the project, the output of recycled and recovered products may not meet the project's objectives; the technology selection criteria are not suitable, the selected technology does not fully meet the required criteria, there is no analysis of technical risks and risk mitigation plans, the total investment is low, etc.

The Party Executive Committee of the City People's Committee has agreed to continue implementing the project of a 1,000-ton/day solid waste treatment plant under the PPP (public-private partnership) model, and at the same time assign the competent state agency to prepare and submit for appraisal, report to the competent authority for consideration and approval of the investment policy (instead of the investor proposing the project investment policy as before).

On the other hand, the proposed content of the new 1,000-ton/day-night domestic solid waste treatment plant project has many changes compared to the project content proposed by the investor, which was approved by the City People's Council in principle for project investment at the end of 2020.

Specifically, changes in contract type, project area, technology, total investment, financial plan, capital structure, service price framework, investor guarantee mechanism, revenue sharing mechanism, project implementation time (according to regulations in Article 17, PPP Law 2020).

However, the proposal to abolish the investment policy of the 1,000-ton/day solid waste treatment plant project still has many different opinions.

According to the Urban Committee of the City People's Council, currently, the Law on Investment under the PPP method and the Law amending and supplementing a number of articles of the Law on Planning, the Law on Investment, the Law on Investment under the PPP method and the Law on Bidding 2024 do not have regulations on the conditions, grounds and procedures related to the cancellation (abolition) of investment policies for PPP projects.

At the same time, Resolution No. 333/NQ-HDND dated December 9, 2020 on approving the project investment policy was issued by the City People's Council within its authority, not contrary to the provisions of law, and some contents are still consistent with the city's current policy (investment objectives, investment forms, investment locations and factory design capacity).

Therefore, the proposal to cancel (abolish) the investment policy of the 1,000-ton/night/day Solid Waste Plant Project under the PPP form approved by the City People's Council in Resolution No. 333/NQ-HDND dated December 9, 2020 has no legal basis for consideration and decision. Therefore, the Urban Committee proposes that the City People's Council not approve the abolition of the investment policy of this Project.

Meanwhile, delegate Vu Quang Hung said that previously, the City People's Council issued Resolution No. 333/NQ-HDND dated December 9, 2020. However, according to the new regulations, the City People's Council's abolition of this Resolution is appropriate and needs to be "implemented quickly" to hand it over to the city to continue implementing it according to its authority.

Mr. Ngo Xuan Thang, Chairman of the People's Council of Da Nang City, said that regarding the delay of this project, the Standing Committee of the Da Nang City Party Committee has requested clarification of the responsibilities of organizations and individuals.

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Source: https://baodautu.vn/da-nang-bai-bo-chu-truong-dau-tu-du-an-nha-may-xu-ly-chat-thai-ran-1000-tan-demngay-d247999.html