What does the investor say about the case of applying for a wind power project and then selling it immediately?

The Chư Prông wind power plant project of Chư Prông Wind Energy Joint Stock Company in Bàu Cạn commune, Chư Prông district, Gia Lai province - Photo: TẤN LỰC

On August 18th, in an interview with Tuoi Tre Online , the investor of two wind power projects in Gia Lai provided information regarding the sale of shares as concluded by the Government Inspectorate .

Selling shares to foreign investors due to insufficient capital for the project.

Previously, as Tuoi Tre Online reported, the Government Inspectorate pointed out that these two projects showed many signs of violations in investment licensing, share transfer, handling of deposit money, and commencement of construction…

The first project is the Mountain Development Wind Power Plant, invested by Chu Prong Wind Power Joint Stock Company, with a capacity of 50MW and a total investment of 1,916 billion VND.

The second project, the Tay Nguyen Processing Wind Power Plant, is invested by Chu Prong Wind Energy Joint Stock Company, with a capacity of 50MW and a total capital of 1,917 billion VND.

Both businesses are registered with their headquarters at 18 Hung Vuong Street, Pleiku City, Gia Lai Province.

It is known that at the time of their establishment, both businesses had a registered capital of 25 billion VND.

Before selling her shares, Ms. Nguyen Thi Sen, chairwoman of the Board of Directors of Bau Can Tea Joint Stock Company, held controlling stakes in two businesses.

According to the investor, both projects have now completed construction and are awaiting acceptance testing before commencing commercial power generation.

Regarding the reason for selling shares to foreign investors immediately after receiving investment approval, the investor stated that these two projects required a very large amount of capital, over 3,600 billion VND at the time of project planning.

Since the project did not borrow from domestic banks, the company had to raise capital by selling shares to foreign investors.

To date, most of the shares in the two projects have been transferred to new investors.

The company claims that it consulted with relevant departments and regulatory agencies before selling the shares and only proceeded with the sale after receiving their approval.

The buying and selling of shares is a form of capital raising that complies with legal regulations.

However, the company admitted that at the time of applying for investment approval, it had not met the minimum capital requirement of 20% of the project scale as stipulated.

Subsequently, after receiving investment approval, the enterprise gradually increased its equity capital to 25%.

Have the deadlines for the two wind power projects been extended?

Regarding the Government Inspectorate's proposal to recover the 16 billion VND deposit for two projects due to delays, the company stated that, according to regulations, when a project is delayed, not implemented, or not granted an extension, the deposit must be recovered.

However, for these two projects, the Gia Lai Provincial People's Committee has repeatedly issued decisions to adjust the investment policy and extend the project deadlines.

In fact, both projects have now completed their investment and construction work. Therefore, the company claims it is acting in accordance with the permits issued by the Gia Lai provincial authorities.

According to our investigation, at the Tay Nguyen Processing Wind Power Plant project, the Gia Lai Provincial People's Committee issued two decisions in 2023 and 2024, respectively, adjusting the investment policy and extending the project's progress.

Of those decisions, the most recent allows the project to be completed and operational from December 2025.

Similarly, at the Mountain Development wind power plant project, two decisions were issued to extend the project deadline until the end of 2025.

Regarding the commencement of the project before the land was handed over and the technical design was approved, the company admitted its wrongdoing and complied with the penalty payment and rectification requirements as requested by the authorities.

Source: https://tuoitre.vn/vu-xin-du-an-dien-gio-roi-ban-ngay-chu-dau-tu-noi-gi-20240818172509553.htm