The 27 billion USD oil refinery project is difficult to arrange enough capital 4
After a working trip with the Thai Petroleum Group (PTT), Chairman of Binh Dinh Provincial People’s Committee Le Huu Loc said that the two sides have agreed on a plan to arrange 27 billion USD for the petrochemical refinery project in Nhon Hoi.
Faced with this problem, some experts are concerned about the feasibility of calling for capital for a `super refinery and petrochemical project`.
`If you borrow domestically, it is difficult for banks to arrange up to 18 billion USD, the Government budget is not available,` this person emphasized.
He also raised the possibility that PTT could link up with large corporations to borrow in other countries.
The `super` petrochemical refinery project in Binh Dinh had to borrow more than 16 billion USD.
Talking to VnExpress.net, Mr. Man Ngoc Ly – Head of Nhon Hoi Economic Zone Management Board said that the capital structure of 60% borrowed and 40% self-owned is not the final decision.
However, assuming the chosen option is 60-40, according to Mr. Ly, in addition to contributing 5 billion USD, PTT will be responsible for calling on domestic and foreign investors to contribute the remaining 4 billion USD to fund the investment.
According to Mr. Man Ngoc Ly, the PTT is proposing to extend the 10% income tax for another 20 years, from the current general rate of 10 years, to get incentives like Dung Quat oil refinery.
`Previously, PTT did not intend to contribute a third, but when discussing, the Vietnamese side commented that they must increase. After establishing the joint venture, PTT can account for the highest capital contribution ratio,` this person said.
Assessing the ability of Vietnamese partners to participate, Mr. Ly said that in the past, PTT proposed domestic enterprises to participate for peace of mind, on the list were Vietnam Oil and Gas Group (PVN), Vietnam National Petroleum Group (PVN).
Talking with Petrolimex representative, Mr. Tran Ngoc Nam – Deputy General Director said that the group currently has no research on the petrochemical refinery project in Nhon Hoi economic zone.
Regarding foreign partners, Binh Dinh recently invited Siam Cement – one of Thailand’s major economic groups, which is planning to build a 4.5 billion USD Long Son refinery and petrochemical plant in Ba Ria – Vung.
`Because there are many foreign investors participating, the project mainly borrows foreign capital,` this person affirmed.
Besides the issue of investment capital and raw material sources of the factory, an expert also noted the construction of a deep-water port in Nhon Hoi economic zone.
Mr. Man Ngoc Ly said that when implemented, the Nhon Hoi petrochemical refinery project will have 2 ports.
Compared with Dung Quat oil refinery, Mr. Ly said that the port system in Nhon Hoi is more convenient.
This person reaffirmed that there are currently no problems with the necessary infrastructure to implement the project, the site clearance of 2,000 hectares has basically been completed, electricity and wastewater treatment have also been prepared.
Dr. Luu Bich Ho also commented that Binh Dinh must develop Nhon Hoi so that it becomes a large industrial park, not just a petrochemical refinery.
According to data from the Foreign Investment Agency, in the first 4 months of the year, Binh Dinh attracted 1 billion USD of foreign direct investment (FDI), surpassing Binh Duong to enter the top 3 localities attracting the most capital.
Huyen Thu
