Vietnam speeds up work on country's first petrochemical plant

16-May-08

Chairman of the Quang Ngai People's Committee has asked relevant authorities to speed up the construction of Vietnam's first petrochemical plant, hampered by local residents demanding more land compensation. The compensation and land allocation for families affected by the construction of the polypropylene plant in the district is under review. 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, 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. The compensation for the 19ha, that was fixed at VND11 bln ($687,500) in 2006, was revised last year to VND22 bln (US$1.37 mln). 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. Local authorities have been asked to sign power supply contracts with residents at the new residential area and pay an additional VND1.5 mln to each of the 21 families affected by the project. He has warned that those who continue to hinder construction after that would be forced out. The petrochemical plant is being built by a consortium consisting of LG International Corp, PV Engineering, PV Construction and Hyundai Engineering Co.