Minister Vu Huy Hoang addressed compensation for damages caused by hydropower plants

Answering a question from Dang Thi My Huong from Ninh Thuan Province about the involvement of hydropower plants in the recent floods in the central region, Minister Hoang said the Ministry of Industry and Trade (MoIT) will strictly investigate the violations. He added that, the MoIT will suspend small-sized hydropower plants which are not suitable for the national power development planning or that affect the environment. “The ministry has revoked investment licenses of 39 hydropower projects in the central region and we should take more stern action to deal with violators in the context of current climate change,” Hoang said.

Deputy Nguyen Van Nhuong from Quang Nam Province also asked the minister to clarify supporting mechanisms for people who are impacted by flood water discharging.

Minister Hoang said if small-sized hydropower lakes were found to be related to the flood in the central region, they must give compensation to local people. He revealed that leaders of Ho Ho Hydropower Plant have considered compensation for people in Huong Lien Commune, Huong Khe District, after receiving their proposals.

Deputy Dang Thi My Huong: Hydropower lakes insisted played a role in the recent floods in the central region

Regarding the power sector, Deputy Pham Thi Loan in Hanoi questioned Minister Hoang about the information that many Chinese contractors are using out-of-date technology for power projects in Vietnam.

“No official information about this has been revealed,” the minister confirmed, adding that contractors are selected after they meet all required technical standards.

Despite acknowledging that several technical problems were found at a number of power plants, Hoang said, only supporting equipment face these, not major equipment.

According to Loan, if the situation resulted from the Law on Bidding, it is necessary to revise the law.

Meanwhile, Minister of Planning and Investment Vu Hong Phuc, who supported Minister Hoang in the Q&A session, admitted slow implementation of power projects carried out by Chinese contractors and also technical problems when the projects come into operation. He explained that this is due to investors’ selection of contractors, not the Law on Bidding.

Delaying answers to the bauxite project’s technical risks

Deputy Hai queried Minister Hoang about the bauxite project in the Central Highlands

Deputy Vu Quang Hai in Hung Yen Province said that, in many countries, alumina projects are often located in places that have an ample amount of power and water sources, however, Vietnam chooses the Central Highlands which lacks these.

To this issue, the minister said the government has very carefully considered the location selection for alumina projects and submitted it to the Politburo. If the projects are located near the sea, its economic efficiency would be higher; but the government not only considers the economic aspect, but also its socio-economic impacts. Therefore the government decided to build two alumina projects in Tan Rai in Lam Dong Province and Nhan Co in Dak Nong Province.

He also asserted that lakes can ensure enough water for these two alumina plants and local people’s life activities. Whether the plants were situated near the sea or in the Central Highlands, they would still face power shortages, Hoang highlighted.

The minister, however, postponed answering questions raised by Deputy Nguyen Lan Dung from Dak Lak Province about possible dangers caused by red mud reservoirs in the Central Highlands and measures to prevent the red mud impacts on soil.

In terms of economic efficiency of the bauxite project, Hoang said the government assigned the MoIT to appraise the Nhan Co project’s economic efficiency. The ministry invited 18 scientists in different sectors to join the appraisal.

Based on appraised figures such as export tariff of 20% and environment fees of VND30,000 (USD1.5)/tonne, the project will break even within 12.4 years after it becomes operational out of its lifespan of 30 years.

(VFEJ, 23/11/2010)