Long An authorities show lax management of solar, LNG power projects: inspectors

The authorities of Long An province in the Mekong Delta had shown lax management that led to violations in the management and use of land and investment in solar power and liquefied natural gas (LNG) thermal power plants, concluded the Government Inspectorate.

The inspectorate on Monday announced its conclusion on the observance of policies and laws in the management and implementation of the national power development plan for the 2011-2020 period (PDP VII) and its amended version (2016-2020).

Under the conclusion, the inspectors said although the Long An I & II LNG thermal power plants had their investment plans approved in 2021, their developer VinaCapital GS Energy Pte. .Ltd had failed to make a deposit or bank guarantee on the deposit obligation at a rate of 1% of the project's total investment capital, equivalent to $31.2 million.

In addition to the developer, the provincial Department of Planning and Investment and the provincial People's Committee were also responsible for this violation, the Government Inspectorate said.

At the same time, the provincial People's Committee was found to have committed violations when approving the construction site of Long An I and Long An II at the Southeast Asia Industrial Park, which does not have approval for industrial production. It added functional zones to the industrial park development plan without submitting them to the Ministry of Planning and Investment for appraisal and to the prime minister for consideration.

The provincial authorities also showed loose management, leading to a series of violations in converting land use purposes, leasing land beyond the allowed limit, commencing solar power projects without a land lease, and putting solar power plants into commercial operations when they were not eligible.

For example, Hanwha – BCG Bang Duong Energy JSC and Hoancau L.A Co., Ltd started construction on the GAIA and Solar Park 02 solar power plants on 124.8 hectares and 52.53 hectares of production forest land, respectively.

In addition, Vietnam Solar Energy JSC kicked off construction on Solar Park 02 on an area of 50.3 hectares; Long An Solar Park JSC with the 48.3-hectare Solar Park 03 solar power plant; Solar Energy LA JSC with the 49.5-hectare Solar Park 04 solar power plant; and Long An Europlast Solar Power JSC with the Europlast Long An Solar PV Park on 58.66 hectares.

All eight solar power projects in Long An province were put into use by the developers and the Electric Power Trading Company (EPTC) under state utility Vietnam Electricity (EVN), with the appraisal process yet to be inspected and approved by competent state agencies.

EPTC's recognition of the commercial operation date and electricity purchase of the above-mentioned power plants at preferential FIT prices for 20 years (four enjoying the FIT price of 9.35 U.S. cents per kWh and four 7.09 U.S. cents per kWh) when competent state agencies had not inspected and approved the developers’ appraisal results is a violation of regulations set by the Ministry of Industry and Trade and the prime minister, according to the inspectorate.

Although the prime minister had not yet allowed the People's Committee of Long An province to change the purpose of use of 124.84 hectares of production land and forest to energy development land, the General Administration of Forestry guided the provincial Department of Natural Resources and Environment to organize an auction to lease the right to use this land for developing energy projects. The provincial People's Committee’s organization of the auction also violated regulations.

Thanh Hoa district’s construction investment project management unit’s handover of 124.8 hectares of land to Hanwha – BCG Bang Duong Energy JSC and 50 hectares to BCG - Bang Duong Energy JSC before being leased by the provincial People's Committee ran counter to regulations.

The inspectors also determined that the authorities of Long An leased land to developers to build solar power plants exceeding the prescribed limit by 11.05 hectares, including 9.76 hectares to TTC - Duc Hue Long An Electric JSC and 1.29 hectares to BCG - Bang Duong Energy JSC.

They were also responsible for lax management, allowing developers to start construction without land leases issued by the provincial People's Committee.