The Government Inspectorate has just announced 3213 conclusions on a comprehensive inspection of the process of proposing, implementing and implementing the Quang Son Cement Factory Project.
Accordingly, the project was invested and built in the districts of Dong Hy and Vo Nhai (old) of Thai Nguyen province. As of December 31, 2021, the project's business activities have lost VND 1,943 billion.
The cause of the project's great losses was determined to be the large cost of investment loans (accounting for 95%), the financial plan was not feasible. Therefore, it is necessary to convert domestic loans to foreign currency loans, increasing capital costs, exchange rate costs of 316.28 billion VND, guarantee, management, insurance fees and taking the project's time on loan procedures.
The implementation of the VINAINCON project has many violations such as self-adjusting the total investment and bidding plan without proper authority, not being approved for compensation adjustment. The total value exceeded the total large investment (1,063 billion VND, about 38%).
In addition, VINAINCON also violated the bidding organization of package No. 01, with a risk of damage of VND 322.21 billion and a risk of loss of VND 113.51 billion; package No. 02.03 with a risk of damage of VND 47.529 billion; specifically: Package No. 32A with an amount of VND 18.961 billion; Package No. 13 with an amount of VND 31.346 billion; Package No. 14 with an amount of VND 126.269 billion; package No. 19 with an amount of VND 80.167 billion; Trial package with an amount of VND 53.66 billion.
This has led to an increase in the investment cost of the project (the proposed settlement value is VND 3,838.7 billion/VND 2,775 billion), increasing the cost of loans. Not to mention, the project is more than 5 years behind schedule, so when the debt repayment deadline comes, there is no source of revenue, leading to overdue debt (1 30%).
The Government Inspectorate also pointed out that the reason for the loss also comes from the very difficult financial situation of the Investor (VINAINCON), the capital for production and business activities is not available, mainly loans and occupied capital in payment. Therefore, it is impossible to balance the cash flow to repay debts for the project. At the same time, the management of materials and assets is weak, public debt is difficult to collect, and has affected business results for many years.
The price of materials, raw materials, and input fuels for production has always increased, while the cost of transporting raw materials and products is large.
On February 8, 2002, the Prime Minister issued Decision No. 140/QD-TTgCP approving the Thai Nguyen Cement Factory Project (later Quang Son Cement Factory) with a land area of 40.8 hectares; capacity of 1.51 million tons of cement/year; total investment of 2,775 billion VND.
VINAINCON was established on September 15, 1998. In August 2010, VINAINCON changed to Joint Stock Corporation, the Board of Directors of VINAINCON decided to establish Quang Son Cement One Member Co., Ltd. to carry out the task of operating production and business activities when the Project was completed and put into operation.
