Clarifying the inconsistency of Quang Binh Economic Zone in handling "suspended" projects

The "suspended" project of the Quang Binh Energy Pellet Factory has caused public outrage. Photo: Le Phi Long

Regarding the Quang Binh Energy Pellet Factory Investment Project of Dohwa Resource Development Company Limited, which has just been requested for extension by the Provincial Economic Zone Management Board from the Quang Binh Provincial People's Committee, Lawyer Doan Trong Bang, Black & White Law Firm - Hanoi Bar Association shared his thoughts on this issue.

According to Lawyer Doan Trong Bang , proving the inconsistency of the Quang Binh Provincial Economic Zone Management Board in this project, in Document No. 195 dated February 22, 2024 of the Economic Zone Management Board on the report on the implementation status of the Quang Binh Energy Pellet Factory Investment Project of Dohwa Resource Development Company Limited (referred to as "Project"), it was determined and assessed that the Project is not in a case where the project implementation progress can be adjusted according to the provisions of the Investment Law. On March 11, 2024, the Party Committee of the Quang Binh Provincial People's Committee reported to the Standing Committee of the Quang Binh Provincial Party Committee on the Energy Pellet Factory Project of Dohwa Resource Development Company Limited, agreeing with the proposal of the Economic Zone Management Board on considering terminating the Project according to regulations, requesting the Standing Committee of the Provincial Party Committee to approve the termination of the Project but not to adjust the project implementation progress.

However, in Document No. 780 dated June 17, 2024 of the Economic Zone Management Board on Project adjustment, it stated differently: "The adjustment of the Project's progress is more than 24 months compared to the progress of the Investment Project specified in the Decision on approval of the first investment policy and the reason for adjusting the Project's progress mentioned above is to remedy the consequences in case of force majeure according to the provisions of the law on civil affairs and the law on land".

Thus, this shows the inconsistency in opinions and assessments of competent authorities, while in previous documents it was affirmed that the Project does not fall under the provisions of the Investment Law on adjusting project implementation progress and must terminate the Project, but in the following document it was changed to allow the Project to adjust implementation progress.

On the other hand, the contents of the documents of the Economic Zone Management Board are recording the inconsistent contents and opinions of investors. Sometimes the investors state that due to financial difficulties, they have not completed the implementation according to the committed schedule, and sometimes the investors state that they have to overcome the consequences in cases of force majeure. These two reasons are completely different and inconsistent.

Furthermore, according to Lawyer Doan Trong Bang, the problem of lack of capital and inability to mobilize capital leading to insufficient capacity to implement the Project is not considered a force majeure reason.

Regarding the incident, on July 1, the Office of the People's Committee of Quang Binh province said that in the latest meeting of the Party Committee of the Provincial People's Committee, the provincial leaders had not yet responded to the above proposal of the Management Board of Quang Binh Economic Zone.

As reported by Lao Dong Newspaper, the Management Board of Quang Binh Economic Zone has just sent a document to the Provincial People's Committee reporting on the adjustment of the investment project of Quang Binh Energy Pellet Factory, of Dohwa Resource Development Company Limited.

Previously, the document dated February 22, 2024 signed by Deputy Head of Quang Binh Economic Zone Management Board Hoang Dang Anh sent to the Provincial People's Committee on reporting the implementation status of the Quang Binh Energy Pellet Factory Investment Project of Dohwa Resource Development Company Limited, clearly stated that the project needed to be considered for termination of operation.

However, strangely, on June 17, 2024, the Quang Binh Economic Zone Management Board sent another document to the Provincial People's Committee regarding the extension for this company until December 2025.

Source: https://laodong.vn/kinh-doanh/lam-ro-su-bat-nhat-cua-khu-kinh-te-quang-binh-khi-xu-ly-du-an-trèo-1359768.ldo