No more cash for ailing mega-projects: Deputy PM

The State will not pump more money into 12 loss-making mega-projects under the management of the Ministry of Industry and Trade (MoIT), Deputy Prime Minister Truong Hoa Binh said at a recent meeting with high-ranking officials in Hanoi.

no more cash for ailing mega-projects: deputy pm hinh 0
The Dung Quat Bio-ethanol Plant in the central province of Quang Ngai, one of the 12 loss-making projects

Binh said the top priority was to prevent further loss to the State's budget and projects that were no longer financially sustainable may be forced to file for bankruptcy or be dissolved.

At the meeting, he ordered project managers and governmental agencies to report on progress of resolving contract conflicts in regards to three Vinachem projects, a process which has been dragging on for years. 

The Committee for Management of State Capital at Enterprises was charged to categorise the projects into three groups: projects on a path of recovery; projects under restructuring and financially unsustainable projects. The committee was told to hand in a report to Prime Minister Nguyen Xuan Phuc on measures that must be taken to support the projects' recovery.  

Seven of the 12 projects are dealing with legal battles over contracts. As attempts to settle disputes have failed, some cases now must go before international courts.

Recovering State capital remains a challenging task as investors from the private sector have either shown little interest in loss-incurring projects or were unable to buy in due to ongoing legal disputes.

After years of struggling, few of the MoIT's 12 failing mega-projects, which have cost the State's budget more than a billion dollars, are profitable. 

The 12 projects are Dinh Vu Polyester Fibre Plant, Phuong Nam Pulp Factory, Thai Nguyen Iron and Steel Joint Stock Corporation, Dung Quat Bio-ethanol Plant, Ninh Binh Fertiliser Plant, Ha Bac Fertiliser Plant, DAP 1 Lao Cai Fertiliser Plant, DAP Fertiliser 2 Hai Phong, Ethanol Binh Phuoc, Ethanol Phu Tho, Dung Quat Shipyard and the joint venture between Quy Sa and Lao Cai Steel.

VNA