Korean firm Dohwa seeks another extension to delayed energy project

South Korea’s Dohwa Resource Development Limited Company has asked the central province of Quang Binh to extend the operational deadline for its long-delayed energy pellet project again to the end of this year.

The company was granted an investment certificate for the VND240 billion ($10.22 million) project in April 2016.

Covering 30,000 square meters at the province’s Hon La Seaport Industrial Park, the project was to have an output of 50,000 tons a year in the first phase and 100,000 tons in the second.

The province has already extended the project’s deadline several times. The previous extension was granted in February 2023, when the South Korean firm was permitted to delay its project deadline to the end of the year. However, little progress has been made since.

In its latest proposal, the South Korean-invested firm said it would reach agreements with three local banks – VietinBank, HDBank and Agribank – on loans to resume project work in March towards completion at the end of this year.

However, another extension is not allowed under the 2020 Law on Investment. The management of Quang Binh Economic Zone has asked provincial authorities to provide directions on this issue.

The energy pellet factory is part of an energy complex that Dohwa has planned in the central province. The complex also features the VND1,037 billion ($44.17 million) Dohwa Le Thuy solar power plant, which became operational in January 2021.