PM orders solutions for long-suspended steel production expansion megaproject in Thái Nguyên

August, 01/2022 - 09:28
The corporation’s phase-two production expansion project, which is among 12 loss-making megaprojects, had its total investment skyrocket from the initially approved VNĐ3.8 trillion (US$165.8 million) to over VNĐ8.1 trillion (nearly $349.5 million).
PM Chính inspects a component of the steel production expansion project of the State-run Thái Nguyên Steel and Iron Corporation which has been delayed for more than a decade. — VNA/ VNS Photo

HÀ NỘI — Prime Minister Phạm Minh Chính requested ministries and agencies to solve problems at a long-suspended project managed by the State-run Thái Nguyên Steel and Iron Corporation (TISCO) during his visit to Thái Nguyên Province on Sunday.

The corporation’s phase-two production expansion project, which is among 12 loss-making mega-projects, had its total investment skyrocketed from the initially approved VNĐ3.8 trillion (US$165.8 million) to over VNĐ8.1 trillion (nearly $349.5 million).

PM Chính said ministries and agencies must solve problems with the highest determination, putting the country’s interest foremost.

He said it is crucial to closely follow the direction of the Politburo, which has been specified in documents 43 and 2194 as well as implement the project based on the conclusions of the inspectorate agencies and lessons learned from other delayed projects.

He ordered investors to update statistics and propose solutions for problems under the direction of the Commission for Management of State Capital at Enterprises.

“It is important to identify whether the project will continue or not, why is it so, how to do it, who will be in charge, when it gets finished, which resources and mechanisms will be used and who will be the one to make the decision,” he said.

He requested the commission and the corporation to continue to work with partners, speed up negotiations based on legal principles and harmony of interests of both sides.

He assigned Deputy Prime Minister Lê Minh Khái to be in charge of directing relevant authorities to solve the problems of the project.

The PM emphasised that Việt Nam is building a socialist-oriented market economy, an independent, self-reliant, proactive and deeply-integrated economy with one of its tasks being establishing a modern industrial sector.

He also noted the importance of solving the problems at the project, contributing to the development of the steel production sector.

During the meeting, Deputy Prime Minister Lê Minh Khái and leaders from ministries and agencies discussed problems including installation contracts, equipment procurement with foreign contractors, and contract payments.

They also reviewed and re-evaluated the work on the project, with most of them agreeing to continue implementing the project.

In late 2004, the then Prime Minister gave TISCO the go-ahead to draft a feasibility study for tripling the capacity of steel billet production from 250,000 tonnes to 759,000 tonnes. One year later, the project was approved at an initial tally of VNĐ3.8 trillion.

The project was originally scheduled for completion within two and a half years.

During the working session in Thái Nguyên Province on Sunday, PM Chính and the working delegation also laid wreaths and paid tribute to 60 youth volunteers who died in 1972 while transporting supplies for the southern region fighting against America. — VNS

E-paper