Deputy Prime Minister Le Minh Khai directed the completion of a plan to completely handle the TISCO 2 and VTM projects. Photo: VGP
Speaking at the meeting, Deputy Prime Minister Le Minh Khai stated: Of the 12 weak projects of the Ministry of Industry and Trade, we have proposed to the Politburo to handle 8 projects. The remaining 4 projects, including the Phuong Nam Pulp Mill Project, the Ministry of Industry and Trade has submitted a plan, the Deputy Prime Minister requested the Ministry of Industry and Trade to complete it soon.
For the remaining 3 projects, on October 19, the Steering Committee gave its opinion on the DQS project handling plan. Today, it will give its opinion on the Thai Nguyen Iron and Steel Plant Phase 2 expansion project and the Quy Xa iron ore mining and selection project, Lao Cai Iron and Steel Plant (VTM project) in Lao Cai province.
Deputy Prime Minister Le Minh Khai emphasized that these are two difficult projects, the Government and the Prime Minister are very concerned, and have given many instructions. Based on the proposed handling plan of the State Capital Management Committee at Enterprises, the Deputy Prime Minister asked representatives of ministries and branches to give their opinions to unify the final handling plan for these two projects.
"If we can agree on a plan to submit to the competent authority for consideration and decision, we will completely handle 12 weak projects under the Ministry of Industry and Trade," Deputy Prime Minister Le Minh Khai stated.
At the meeting, after listening to the report of the State Capital Management Committee at enterprises, the Government office reported on the implementation process for these two projects.
Commenting on the plan proposed by the State Capital Management Committee at Enterprises, members of the Steering Committee, as well as Thai Nguyen and Lao Cai provinces, said: The VTM joint venture project between 3 parties is ineffective, technology is not synchronized,...
Regarding ownership structure, Vietnam only owns 46% (owning less than 50% so it is not a state-owned enterprise), state shareholders do not play a decisive role but VTM's decisions are based on the consensus of all 3 parties,...
Therefore, the members proposed that the competent authority remove this project from the list of weak projects for the joint venture parties to decide on the basis of legal provisions on economics, investment, etc.
Regarding the TISCO 2 project, opinions say that the most difficult problem at present is to completely resolve issues related to the EPC contract. However, continuing to implement the contract is very risky. And when the contract cannot be completed, the only way left is to "end it in an unfinished state". This is also the most reasonable solution, "with the least loss".
Opinions also suggest that the agreement mechanism should be used, agreeing with the partner on the contract termination plan; developing scenarios for implementing the agreement; clarifying problems and proposing specific mechanisms... to report to the competent authority for approval, on that basis, this project can be completely handled.
Deputy Prime Minister Le Minh Khai delivered a concluding speech at the meeting. Photo: VGP
Concluding the meeting, Deputy Prime Minister Le Minh Khai stated that handling 12 projects of the Industry and Trade sector is very difficult. The Government is very concerned. The Politburo has also issued 3 directive documents. The State Capital Management Committee at Enterprises, together with ministries, sectors and enterprises, have also been very active in handling the issue, but because the problem has existed for a long time, handling it has encountered many difficulties.
However, according to Deputy Prime Minister Le Minh Khai, with great efforts from all levels, sectors and enterprises, "we have handled 8 projects". Recently, the Phuong Nam Pulp Mill project and the Dung Quat Shipbuilding Industry Company (DQS) project have also received comments from the Steering Committee to complete the handling plan and submit it to competent authorities for consideration and decision.
Deputy Prime Minister Le Minh Khai emphasized that "these two remaining projects are the most difficult, requiring a lot of time for research and evaluation,..." Today, members of the Steering Committee and leaders of Thai Nguyen and Lao Cai provinces gave specific opinions, requesting the Capital Management Committee to accept and complete the plan to submit to the Government Standing Committee before October 22, 2023.
Deputy Prime Minister Le Minh Khai stated: Regarding the VTM project, the Steering Committee members basically agreed in the direction of "handing it over to Vietnam Steel Corporation, with 46% equity, based on the provisions of law and authority to participate in restructuring the project".
The Deputy Prime Minister requested that the State Capital Management Committee at Enterprises clearly analyze the contents related to the practical implementation of the project, clarify the viewpoints, difficulties, obstacles and legal basis to present a feasible plan, clear responsibility, as well as calculate possible scenarios to have appropriate measures.
Regarding the TISCO 2 project, Deputy Prime Minister Le Minh Khai emphasized that "this is a very complicated project, mainly due to problems related to the EPC contract". For this project, the Government Inspectorate has made a conclusion. The authorities have handled administrative and criminal responsibilities. However, there are still problems in handling economic issues. The guiding viewpoint of the Government and the Prime Minister is to completely resolve the problems related to the EPC contract first and then propose the following contents.
To solve this problem, the State Capital Management Committee at Enterprises as well as the opinions of the Steering Committee members basically agreed to propose that the competent authority approve the policy of resolving the issue in the direction of agreement with the partner to liquidate the EPC contract.
However, the resolution in this direction must also comply with principles. Deputy Prime Minister Le Minh Khai requested the State Capital Management Committee at Enterprises to analyze, evaluate carefully, clarify the principles, bases, and reasons for the proposal on the basis of ensuring publicity, transparency, harmony, and sharing among the parties, perfecting a truly convincing plan, ensuring "it is done once submitted". At the same time, it is also necessary to clarify the subsequent handling plans if the policy is approved by competent authorities./.
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