Slim opportunity for SBIC’s solar power project

August 15, 2016 | 11:22

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State-run Shipbuilding Industry Corporation (SBIC)’s opportunity to co-operate with Foxconn in the development of a 200 megawatt solar power plant in South Cam Ranh Industrial Zone (IZ) is slim, as the Prime Minister (PM) is considering Khanh Hoa province’s proposal to revoke the IZ’s investment certificate.

According to Le Duc Vinh, Chairman of the Khanh Hoa People’s Committee, the province expected that the IZ would attract investment capital to the province’s industrial sector, however, the construction has been immobile for the seven years since it was licensed.

“The project’s long delay in construction does not comply with the Law on Investment and the Law on Land, while simultaneously preventing the planning of Cam Ranh region in general,” Vinh added.

In early August, SBIC proposed the Khanh Hoa People’s Committee not to revoke the project’s investment certificate so that the company can carry out negotiations with HC Global Joint Stock Company (HCG) to join the solar power plant. According to SBIC’s design, the plant is to be implemented by a consortium of Taiwanese Foxconn Technology Group, HCG, and Clean Energy JSC.

However, according to VIR’s source, no further information on the solar power project has been disclosed for now. Besides, while the consortium has no specific plans for the solar power project, it is difficulty for the investors to persuade the authority to change its decision.

South Cam Ranh IZ, invested by Nha Trang Shipbuilding Co., Ltd., was licensed in March 2009 with the total investment capital of VND980 billion ($43.9 million). However, the construction has yet to be implemented due to the investor’s financial troubles.

Khanh Hoa has been considering revoking the project’s investment certificate since 2012.

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