Song Hong river |
After more than three months of appraisal, the Ministry of Planning and Investment (MPI) recently asked the prime minister to approve the investment proposal for a project to build a trans-Asia route on the Red River, combined with hydropower plants.
In the lead up to this request, the MPI gathered information from the Ministry of Transport, the Ministry of Finance (MoF), the Ministry of Natural Resources and Environment, and state-run Electricity of Vietnam.
The mega-project in the north-central province of Ninh Binh, valued at an estimated VND24.5 trillion ($1.1 billion) and initiated by Xuan Thien Company Limited, is unprecedented not only in scale but also in the complexity of the project’s components.
According to the investor’s latest proposal, the project has two aims: upgrading the waterway transport line along the Red River by connecting two major waterway transport routes (Haiphong-Viet Tri and Hanoi-Lach Giang), and creating an annual electricity supply of 0.91 billion kWh. To achieve these goals, the investor plans to build six spillway systems, dredge a 288 kilometre channel along the Red River section from Viet Tri city to the northern highland province of Lao Cai, constructing six hydropower plants with a total designed capacity of 228MW, and creating seven ports along the route from Hanoi to Lao Cai.
The investor stated that of the project’s estimated investment capital, 30 per cent will be the investor’s equity and the remaining will be offset by commercial loans. The capital to recoup the investor’s input will come from toll collections and electricity sales over a period of 25 years.
“If successful, the project will open a low-cost and efficient transportation line which would transform the northern area transport landscape,” commented Deputy Minister of Transport Nguyen Nhat.
Red River megaproject in baby shoes, public concerns exaggerated Nguyen Xuan Tu, head of the Ministry of Planning and Investment’s Investment Supervision and Appraisal Department, sheds some light on a megaproject building a section of a trans-Asia waterway route on the Red River, combined with hydropower development from the stance of state management bodies. The public recently expressed concern that the project, once implemented, could adversely affect planning work, the landscape, the environment, and the safety of Red River currents. What is your view on these claims? First of all, I would like to reassert that the project is only at the preliminary stage of floating ideas. The Ministry of Planning and Investment has just reported to the prime minister and requested permission for the investor to conduct further studies on the project. To implement the project, at least two more steps are needed to overcome. First, the investor must submit the project proposal for the approval of authorised government agencies. Second, the project’s feasibility study needs to be conducted. Implementation can only start after the project has passed the appraisal process and received approval from authorised government bodies. Though there were initial ideas, we recognise that this is a multi-target project with investment covering different fields, such as waterway transport, water supply and draining, agriculture, seafood, hydropower development, environment, and security and defence. During consideration we have sought comments from a multitude of sectors, ministries, as well as affected areas’ management authorities. Basically, ministries, sectors, and localities all advocated the further studying of the project. For instance, the Ministry of Agriculture and Rural Development has required clarification of the project’s impact on the flood situation in the upstream area, dyke system safety, erosion possibility in the post-implementation period, the loss of agricultural and forest land, or people’s resettlement. We have predicted the matters raised by the public, but the implications, where to build spillways, and how to sell power will be tackled in the next phase, after the investor deepens their study and the project feasibility study is completed under guidance from authorised government agencies. Some opinions insist that the project is being appraised too fast. Is this truly the case? As I have said before, we are only at the stage of considering initial ideas. Evaluating the project feasibility study can not be done in just four to six months, as the process needs to source comments from relevant government agencies, sectors, the public, as well as a group of experts from various fields. This is all because we realise the scale and magnitude of the project, as well as the complexity of its components and its area along the Red River. There are concerns that some project components, particularly hydropower development, are not included in state planning schemes? Building six spillway systems, six hydropower plants, and seven ports along the route was the investors’ initial proposal. In the next phase, through reviewing relevant state planning schemes, such as inland port planning, hydropower planning, and land use planning, etc., and after completing the necessary surveys, the investor needs to determine the exact position and scale of each project item, as well as present their social and environmental impact assessment reports and make sure they match the state planning. If necessary, authorised agencies and sectors will review the planning and add the project to it, if it is judged important and feasible for implementation. By Nguyen Duc |
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