Enfinity's Vietnam projects face local government delay

A Belgian-Vietnam renewable energy project is being delayed due to land acquisition problems. The Phuoc Nam-Enfinity program is increasing the capacity of the wind turbines its will install from 1.5-MW to 2.3-MW because, not only has the local government only released a third of the agreed land for the project, but deployment a solar farm at the same time as wind has been forbidden.

According to a report in the Vietnam Investment Review, Tran Khang Thuy, director at Ho Chi Minh City Economics University’s Centre for Economic Studies and Applications – the local partner of Belgium's Enfinity Group – say it is negotiating the land price for the original land tranche of 553 hectares with the Ninh Thuan Department of Natural Resources and Environment.

He warned that the land prices would have to be pragmatic as the project's costs have already escalated. There was no explanation as to why another 1,214-ha the provincial management agreed to release has been withheld.

Initially, Enfinity proposed to develop three renewable power projects in Ninh Thuan including a 282MW solar power farm covering 560-ha and two wind farms with a combined capacity of 240MW. However, the government has given the green-light  one USD251 million, 124.5-MW wind power farm proposal while other projects are still pending approval.