The case of applying for a wind power project and then... selling it immediately: What did the investor say?

Chu Prong wind power plant project of Chu Prong Wind Energy Joint Stock Company in Bau Can commune, Chu Prong district, Gia Lai province - Photo: TAN LUC

On August 18, speaking with Tuoi Tre Online , the investor of two wind power projects in Gia Lai informed about some contents related to the sale of shares according to the conclusion of the Government Inspectorate.

Selling shares to foreigners because of lack of capital for project

Previously, as Tuoi Tre Online reported, the Government Inspectorate pointed out that these two projects had many signs of violations in granting investment licenses, transferring shares, handling deposits and starting construction...

The first project is the Mountain Development Wind Power Plant invested by Chu Prong Wind Power Joint Stock Company, with a capacity of 50MW and a total capital of VND1,916 billion.

The second project, Tay Nguyen Processing Wind Power Plant, is invested by Chu Prong Wind Energy Joint Stock Company, with a capacity of 50MW and a total capital of VND1,917 billion.

Both businesses are registered at 18 Hung Vuong, Pleiku City, Gia Lai.

It is known that at the time of establishment, both enterprises had charter capital of 25 billion VND.

Before selling shares, Ms. Nguyen Thi Sen - Chairwoman of the Board of Directors of Bau Can Tea Joint Stock Company - held controlling shares in two enterprises.

According to the investor, the two projects have completed construction investment work and are awaiting acceptance for commercial power generation operation.

Regarding the reason for selling shares to foreign investors right after receiving investment approval, the investor said that these two projects needed a huge amount of capital, more than 3,600 billion VND at the time of project establishment.

Because the project does not borrow from domestic banks, the enterprise must raise capital by selling shares to foreign investors.

To date, most of the shares of the two projects have been transferred to new investors.

The company said that before selling shares, it had consulted with departments, management agencies and received approval before selling shares.

Buying and selling shares is a form of capital mobilization in accordance with legal regulations.

However, the enterprise admitted that at the time of applying for investment policy, it did not meet the capital requirement of at least 20% of the project scale as prescribed.

Then, when the investment policy is granted, the enterprise gradually increases its equity to 25%.

Two wind power projects have been extended?

Regarding the Government Inspectorate's proposal to recover the deposit of two projects worth 16 billion VND due to slow progress, this enterprise said that according to regulations, when the project is slow, not implemented or not granted an extension, the deposit must be recovered.

But for these two projects, Gia Lai Provincial People's Committee has repeatedly decided to adjust investment policies and extend project progress.

In fact, the two projects have now completed their construction investment. Therefore, this enterprise said it is following the license granted by the Gia Lai provincial authorities.

According to the reporter's investigation, in 2023 and 2024, the Gia Lai Provincial People's Committee issued two decisions to adjust the investment policy and extend the project's progress at the Tay Nguyen Processing Wind Power Plant project.

In particular, the latest decision allows the project to be completed and put into operation from December 2025.

Similarly, at the Mountain Development wind power plant project, two decisions were also issued to extend the progress until the end of 2025.

Regarding the act of starting a project without land handover and technical design approval, the enterprise admitted its violations and has paid the fine and made corrections as required by the authorities.

Source: https://tuoitre.vn/vu-xin-du-an-dien-gio-roi-ban-ngay-chu-dau-tu-noi-gi-20240818172509553.htm