‘Environmental city' Danang struggles to untangle waste treatment plants from red tape

Danang, dubbed central Vietnam's “environmental city”, has two waste-to-energy plants stagnating on paper because of procedural tangles.

The municipal Department of Planning and Investment recently granted an adjusted investment registration certificate to Vietnam Environment Joint Stock Company to invest in the Khanh Son-Danang waste-to-energy plant at the Khanh Son landfill in Hoa Khanh Nam ward, Lien Chieu district.

The plant will have a designed capacity of burning 650 tons of domestic solid waste per day; classify and burn 350 tonnes of common industrial waste per day; and produce 7,068 liters of finished petroleum oil (PO) per day or 11.78 liters of PO per ton of waste.

The plant will also produce 900 kilograms of finished recycled oil (RO) per day (1.5 kilograms per ton of waste). The project will include a hazardous waste storage and treatment facility with a capacity of 5,000 kilograms per hour.

The VND2.02 trillion ($87.78 million) project is expected to be put into operation in the third quarter of 2026.

At a recent press conference on the city’s socio-economic situation in Q3/2023, Vo Nguyen Chuong, deputy director of the municipal Department of Natural Resources and Environment, said the project will treat domestic solid waste with incineration technology from Germany.

Currently, Vietnam Environment JSC is implementing necessary procedures for the project to kick off on schedule.

The second project, also in the Khanh Son area, will be a public-private partnership (PPP) investment. Covering more than 29,000 square meters, the plant with an incineration capacity of 1,000 tons per day, will be built at a total cost of over VND823 billion ($33.73 million).

Danang authorities have selected the EcoPark Joint Venture – formed by TDH Ecoland Urban Development and Investment JSC, Huy Hoang Development Production and Import-Export JSC, and Huy Hoang Eco Environment JSC – as the project investor.

The planning department has informed the municipal People's Committee that the appraisal council has studied the project's feasibility study report and asked for some amendments and supplements.

Chuong said Danang will take the next steps in line with regulations. In case the PPP arrangement does not work out, the city will call for investment under other permitted modes to ensure that it continues to follow the approved waste treatment roadmap, he added.

Landfills not a priority

Le Cong Hung, a representative of TDH Ecoland, said that the joint venture has completed a feasibility study for the waste treatment plant and submitted related documents to the Ministry of Construction to get a license.

However, he noted that many localities were facing problems investing in waste treatment plants in the PPP form because of waste supply contracts, he said.

"Despite winning the bid, we cannot have the investment policy approved since approval requires a waste supply contract. Since the plant is yet to be built, we can’t sign a waste supply contract and set prices," Hung said.

He added that the project was facing difficulties with regulations on the “safe distance” mandated the Ministry of Natural Resources and Environment which requires a waste treatment plant to be at least 500 meters away from residents’ houses. However, more than 300 households live close to the site of both proposed plants.

Chuong with the municipal Department of Natural Resources and Environment said that city leaders have directed relevant units to ensure an environmentally safe distance from the Khanh Son solid waste treatment complex in line with regulations.

The municipal People's Committee has asked relevant departments and agencies to implement site clearance and compensation plans to create an environmentally safe distance.

Within the environmentally safe distance area, the city will call for investment in projects less affected by environmental factors like power stations, waste transfer stations, warehouses and logistics centers.

Le Quang Nam, Vice Chairman of the Danang People's Committee, said the Khanh Son solid waste treatment complex, covering an area of over 50 hectares, will also treat domestic, hazardous and medical waste, as well as recycle waste from construction materials.

"The city will choose appropriate technology, ensuring environmental protection with the most stringent standards," Nam asserted.

He said Danang has identified waste treatment as a vital issue and considers waste a resource. Therefore, the city will not prioritize landfills, he stressed.