Work speeds up on petrochemical plant

Chairman of the Quang Ngai People’s Committee Nguyen Xuan Hue asked relevant authorities to speed up the construction of the country’s first petrochemical plant, which has been hindered by some local residents demanding more land compensation.

Hue asked the Binh Son District People’s Committee to review the compensation and land allocation for families affected by the construction of the polypropylene plant in the district.

He also asked the local authorities to sign power supply contracts with residents at the new residential area and pay an additional VND1.5 million (US$93.7) to each of the 21 families affected by the project.

Those who continued to hinder construction after that would be forced out, he warned.

According to the Dung Quat Land Fund Development and Compensation Board, 21 families from Binh Son District’s Binh Tri Commune have occupied the site after they received compensation for moving to the Trang Bong residential area.

The board said they were now demanding compensation at the latest rate, the 100cu.m of water each family was promised but not provided for building new houses, and better living conditions in the new residential area.

They are among the 69 families that had to move to make way for the $232 million polypropylene plant on 19ha in the Dung Quat Economic Zone.

The compensation for the 19 ha, that was fixed at VND11 billion ($687,500) in 2006, was revised last year to VND22 billion ($1.37 million).

These 21 families had been the first to move and received the old rate. They are now demanding to be paid at the new rate.

They also missed out on a VND6 million ($375) ‘bonus’ each family got last year for moving from the site.

Bui Cong Toanh, head of the Petroleum Construction Co team responsible for levelling the site, said work had been stopped for over a week now, and won’t be completed on schedule.

The plant is scheduled for completion in May 2010.

Bui Danh Cuong, deputy head of the Dung Quat Refinery project, said the delay would also affect the refinery project.

The petrochemical plant is being built by a consortium consisting of LG International Corp, PV Engineering, PV Construction and Hyundai Engineering Co. (VNS)