Long-delayed Tan Mai pulp and paper mill officially revoked

The $220-million Tan Mai pulp and paper mill has finally been axed

In late April, the Department of Planning and Investment of the Quang Ngai People’s Committee issued the decision to withdraw the investment certificate of the Tan Mai pulp and paper mill complex due to long delays and violations in construction procedures.

Tran Hoang Vinh, the representative of the Quang Ngai Department of Planning and Investment, told VIR that since the province decided on the revocation, the investor has yet to send any response.

The investor has to complete the liquidation of the project as well as submit the original investment license to the department within 30 days of the issuance of the decision.

“The Binh Son District People’s Committee will take over the management of the land which was handed over for the project. If a sufficient number of investors express intention to develop projects on the plot, the district people’s committee will organise an auction for the land use right,” Vinh added.

In 2009, Tan Mai Group received the investment certificate for the project. According to the initial plan, the project would have a total investment capital of VND1.95 trillion ($85.6 million) with the annual pulp capacity of 130,000 tonnes and the annual high-end paper capacity of 200,000 tonnes.

The construction, covering an area of 45 hectares in Binh Son district, was expected to be kicked off in October 2009 to be finished in 2011.

During the construction process, the investor proposed the Quang Ngai People’s Committee to adjust the investment capital as well as the construction deadline no less than five times. However, the province only approved adjustments for the first three times.

Accordingly, the investment capital was increased to VND5.01 trillion ($219.5 million) and the deadline for completing the construction of the pulp mill was adjusted to December 2012 and the paper mill to December 2013.

However, the construction was only kicked off in July 2010 and was suspended in December 2012. At the time, the investor had only completed the environmental impact assessment report, the detailed construction plan, and took over the land to implement the project.

According to the Quang Ngai People’s Committee, the investor’s lack of financial potential was the major cause behind the long delays. Thus, the investor will have to bear the entire responsibility for the incident.