MoIT looking for consultancy company for long-delayed steel plant

December 10, 2016 | 14:00

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The Department of Heavy Industry under the Ministry of Industry and Trade (MoIT) is looking for a consultancy company to evaluate the long-delayed Thai Nguyen iron and steel plant-phase 2 as well as treatment plans for the project investor Thai Nguyen Iron and Steel JSC (TISCO), according to newswire Dantri.

Consultancy companies can submit the applications to the Department of Heavy Industry before December 15.

The valuation of the project will serve as a base for the MoIT’s solution package to be submitted to the Prime Minister (PM).

Previously, the PM resolutely refused to save the failing project and requested the MoIT to submit proposals before July 1. However, the MoIT has greatly missed the deadline.

The facility has a designed capacity of 500,000 metric tonnes of iron and steel products per year.

In 2009, the project’s expected cost increased from VND3.8 trillion ($170.4 million) to VND8 trillion ($361.4 million).

In 2012, contractor China Metallurgical Group Corporation (MCC) decided to stop implementing the project and returned to China, claiming the capital increase was too high and the investor had difficulty whipping up capital after disbursing more than VND4.5 trillion ($216.35 million) for the project. Thus, the project’s construction has been delayed for four years.

On March 29, TISCO announced that it can arrange the necessary finances to continue the construction. However, TISCO has yet to lure MCC to the negotiation table.

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