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Singapore firm pulls out of chemical project
Singapore’s SP Chemicals Ltd has officially asked for permission to drop out of a giant petrochemical industrial park and complex in the central coastal province of Phu Yen.
The request to stop implementing the US$11 billion naphtha cracking project halfway was made in a letter sent in mid-April to the provincial People’s Committee. The reason for the request has not been released.
The committee has asked the SPC to pay VND23.12 billion (US$1.36 million) in damages caused by the project to the agriculture sector through loss of farmland, and expenses incurred for land clearance and making detailed plans for the project.
The SPC has so far not responded to this demand, and the People’s Committee has yet to inform local residents about the project cancellation.
The cancelled project, planned to be an industrial park exclusive to the country’s petrochemical sector, is located in Hoa Tam Commune in Dong Hoa District, about 25km south of Phu Yen Town.
It got the Prime Minister’s approval in August, 2007 and plans were drawn up to dedicate1,300ha of land and 1,300ha of sea area in the commune for the project.
A specialised seaport at Bai Goc under the project was added to the national seaport development master plan.
The petrochemical IP was also incorporated into the national masterplan for industrial park development as well as a plan to develop the national petrochemical industry in the 2006-10 period, with an extended vision to 2025.
The provincial government had already begun work on reclaiming land, drawing up detailed plans and nominating contractors to complete the project on a turn-key basis.
It also planned to build a new administrative and resettlement area to facilitate project implementation by the investor.
vietnamnews
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