Nong Son thermal power plant left unfinished

China National Heavy Machinery Corporation related stories

• Chinese contractor quits with plant still unfinished

The Nong Son thermal power plant in Nong Son District, Quang Nam Province, was left partially finished after the Chinese contractor refused to continue the project, relieving all workers.

Many parts of the construction site deteriorated Vietnam National Coal and Mineral Industries Group (Vinacomin) invested VND674 billion (USD32.3 million) in the project, which was designed to have a capacity of over 150 kWh per year.

It was hoped that after completion of the project the coal mines in Nong Son District would have been exploited in a more efficient and sustainable fashion. Now, however, it seems that the project has been abandoned.
The key component in the bid package went to the China National Heavy Machinery Corporation (CHMC) in 2008, with VND529 billion. Although they had promised to finish their part by April 2010, it continues to remain unfinished.
Mai Xuan Ha, Chief of Vinacomin’s Nong Son Coal and Power JSC, said the project was 56% completed.
Explaining the stagnancy, Ha said that the economic downturn increased prices for construction materials, which caused problems for contractors. He added that the storm which caused devastation in the area added to their difficulties by damaging equipment, but that the major issue was the inability of CHMC to carry out their part.
Cooperation between CHMC and other contractors was lacking, as well as funds. In April, 2012, CHMC stopped their work completely and sent all their 300 Chinese workers home.
CHMC asked to change the terms of their contract by raising their take, but, according to Ha, their demands were not acceptable. Currently Nong Son Coal and Power JSC is working with CHMC to solve the problems and send a revised proposal for approval by Vinacomin.
The unfinished project is not only a waste of money but also cause troubles to the locals.
Over 100 people from Nong Son who had been trained for employment on the project are now out of work. Nguyen Kim Dung, Chairman of Que Trung Commune’s People Committee, said people in that ward formerly had an average of about 30 ha of farmland, mostly used for agriculture. Since the average size of farmers’ land has been reduced by half because of the power plant project, this leaves them in a tough situation.
He added that pollution from the project has adversely affected agricultural production.
“We are urging Nong Son Coal and Power JSC to complete the project. Otherwise we will be the ones who see the bad effects,” Huynh Tan Trieu, Chairman of Nong Son District’s People’s Committee said.

Nong Son thermal power plant left unfinished