The Ministry of Natural Resources and Environment yesterday afternoon put into operation an environmental surveillance station to supervise all waste discharge sources from Taiwanese Hung Nghiep Formosa Ha Tinh Steel Company (FHS).

FHS located at Vung Ang Economic Zone, Ky Anh town, Ha Tinh province is the culprit of the April mass fish death in the north central region.

Minister Tran Hong Ha instructed the station is placed to supervise all waste discharges from Formosa 24/7 within three years.

The facility, equipped with modern machines and technologies at the cost of billions of Vietnamese dong, operates like a mobile laboratory at the scene.

The Supervisory Agency on Environmental Protection which runs the station will test wastewater samples on site instead of taking them to the ministry in Hanoi.

If testing results show environmental parameters higher than permissible levels, the agency will give warnings and issue fines conformable to the law.

Next week, the ministry will launch another station at the biochemical waste treatment area of Formosa.

In addition, the ministry will ask the Taiwanese company to build a biological reservoir comprising three parts which can contain wastewater in three days. Treated wastewater will be released into the reservoir and purified before being discharged into the environment.

Vung Ang water supply project investment increase probed

Deputy Prime Minister Truong Hoa Binh has instructed the Government Inspectorate to probe into the capital adjustment for a water supply project for Vung Ang Economic Zone in Ha Tinh Province.

The project capital has been raised by VND2.55 trillion (USD121.4 million) to VND4.4 trillion from the initial figure of just VND1.85 trillion. Of the total capital investment, VND1.2 trillion has been sourced from the state budget.

According to Deputy PM Truong Hoa Binh, Ha Tinh Province People's Committee selected Vung Ang Investment and Development Joint Stock Company to be the project investor which is still lacks experience in such large-scale works.

The deputy PM added the project also used the state-funded capital of VND1.2 trillion, but, the investor appointed some of its shareholders to be the contractors for the project without the prime minister's approval, which is the serious violation of the country's Law on Bidding.

Under the Deputy PM's instruction, the Government Inspectorate has to report the investigation results about the project before July 31 this year.

The water supply project for Vung Ang Economic Zone was started in 2011 and is slated for completion by the end of this year.

A recent Government Inspectorate investigation also found Ha Tinh Province had violated regulations in approving the lifespan of the Hung Nghiep Formosa Ha Tinh Steel Co.

According to the inspection, Vo Kim Cu, Chairman of the provincial people's committee signed the decision to licence the company at Vung Ang Economic Zone for 70 years, instead of 50 years as regulated in the country’s Law on Investment.

Expert slams Formosa steel project

Nguyen Thanh Son, former head of the Red River Delta Coal Project Management Unit, has said the Formosa Group should not be allowed to operate for 70 years in Vietnam as they would not have a major economic impact and had already caused major pollution.

Provincial authorities licenced the Formosa steel project at Vung Ang Economic Zone for 70 years, instead of 50 years as regulated in the country’s Law on Investment.

Nguyen Thanh Son, former head of the Red River Delta Coal Project Management Unit under Vietnam National Coal and Mineral Industries Group (Vinacomin), said Taiwan's Formosa Plastics Group, mother company of Hung Nghiep Formosa Ha Tinh Steel Co. in central Vietnam, had never shown that it had capability or experience in the steel industry before establishing the company in Vietnam. He wondered why Formosa decided to invest in steel company considering the industry was declining globally.

He went on to say that amid such a climate, Formosa chose to cut environmental protection measures to save finances and limit losses to ensure the steel plant’s operation. He suggested that Formosa had removed the polluting steel industry from Taiwan. Thanks to lax management, Formosa had imported cheap coal to convert into coke.

"This project is a major polluter and not one that would benefit Ha Tinh Province," he said. "That's why it should not be allowed to run here for 70 years."

Technology to convert coal into coke leaves behind huge amounts of toxic waste. Only irresponsible officials could claim not be aware of the dangerous consequences to the environment nature from such a project, he said.

Son said, "In fact, lots of countries are trying to move metallurgical projects to other countries because of expensive waste treatment and low economic benefits. Despite being a large-scale project, the plant has limited effect on other economic sectors. The government should reconsider its scale and reduce the licensed time to 25-30 years."