Formosa urged to clarify fund increase
The Ministry of Planning & Investment (MPI) has requested Ha Tinh province to clarify reasons behind Formosa Ha Tinh Steel Corporation (FHS)’s decision to increase total investment in the Son Duong Port and Integrated Steel Mill Complex.
FHS proposed to increase the project investment from US$11.03 billion to US$11.62 billion, or an increase of around US$590.65 million, according to the firm’s proposal submitted to the Management Board of Ha Tinh Economic Zone.
MPI has requested Ha Tinh province to clarify reasons behind FHS's decision to increase total invesment.
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The adjusted project investment, as stated by the Management Board of Ha Tinh Economic Zone, is due to FHS’s intention to increase capital in some work items and equipment, construct new facility and modify implementation progress.
Formosa came into the spotlight in April 2016, after the plant accidently spilled toxic waste that polluted more than 200 km of coastline in four central provinces, devastating sea life and local economies dependent on fishing and tourism. The incident caused one of the worst environmental disasters in Vietnam, assessed the Ministry of Natural Resources and Environment (MONRE).
Formosa had to pay US$500 million in compensation to affected people and for the recovery of marine areas. Vietnam is still tying up the loose ends a year after the event. Consequently, the affected region is expected to take a decade to completely recover, according to MONRE.
FHS in March said it would boost investment in the project by about US$350 million to improve environmental safety, raise working capital, buy materials and build a dry coking system, amid public outcry against the company.
On the government side, eleven government, provincial and industry officials responsible for the incident were publicly disciplined.
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