ReCycled Refused International Group (RCR), one of Britain’s leaders in energy and waste treatment, plans to pump huge investment into Vietnam under the public private partnership.
Hanoi-based Technology-Trading and Investment Consultancy Joint Stock Company (Tecin), the firm’s (RCR) representative in Vietnam, told VIR that RCR would take its first step into Vietnam by investing at least €6.53 billion ($8.92 billion) into four projects from 2011.
The projects include a €2.7 billion ($3.69 billion) urban solid treatment project, a €1.2 billion ($1.64 billion) ethanol manufacturing project, a €63 million ($86.1 million) project to destroy and recycle automobile tyres and a €2 billion ($2.73 billion) project to desalinise sea water with solar energy.
Tecin’s deputy general director Le Trung Truc said that under the urban solid treatment project, 15-20 waste treatment facilities, whose total capacity was 15 million tonnes of solid waste per year, would be built in many provinces in Vietnam to treat 12.8 million tonnes of urban solid waste per year, or 35,000 tonnes per day. The facilities would also annually manufacture 3.5 million megawatt hours of power.
It would need 12-15 months for RCR to build and test each facility, as well as fulfill necessary legal procedures under Vietnam’s laws. Each facility would need up to five hectares.
The facilities’ discharged gas and waste water standards would be far higher than Vietnam’s required standards. They would employ 25,000 workers and help localities avoid burying 95 per cent of their waste, which causes great environmental pollution.
Additionally, RCR would also provide 2,700 modern rubbish collecting trucks for Vietnam, Truc said.
He said RCR would cooperate with the ministries of Natural Resources and Environment, and Construction, and provincial and municipal people’s committees under the public private partnership (PPP) form.
Particularly, the ministries would have their part in the board of directors of RCR’s Vietnam-based corporation, which would manage the facilities.
“Vietnam’s contributions are investment priorities, financial policies and implementation of solid waste provision contracts, and payment for treating and collecting waste, while RCR is in charge of pouring investment, technology and know-how,” Truc said.
“RCR is the world’s sole investor giving special conditions to Vietnam for the PPP mechanism, though Vietnam does not contribute its owner’s equity. Specifically, Vietnam would receive RCR’s half of net profits and would have the right to participate in the corporation’s board of directors,” Truc said, adding that the first facility would be built in 2011.
According to Tecin, RCR’s €1.2 billion ($1.64 billion) ethanol manufacturing project would churn out 10 million litres of ethanol per year. The project would include many plants to be constructed in Hung Yen, Thanh Hoa, Quang Ngai, Binh Dinh, Phu Yen, Tay Ninh and Long An provinces where boast ethanol development potential.
“Vietnam’s potential ethanol volume is 2.4 billion litres per year. So, RCR does not want to miss this opportunity,” Truc said.
RCR said that Vietnam’s potential in destroying and recycling automobile tyres was 90,000 tonnes per year, or 250 tonnes per day, to recover steel, gas and black coal powder. Thus, RCR’s €63 million ($86.1 million) project of the kind would include five factories in Hanoi, Quang Ninh and Danang cities and Dong Nai and Long An provinces.
RCR also said it was seeking investment opportunities for a €2 billion ($2.73 billion) project to desalinise sea water with solar energy. This project is designed to produce 4.2 million megawatt hours of power per year and 72 million cubic metres of fresh water per year. It would include factories in Quang Binh and Ninh Thuan provinces and the Mekong Delta region.
Truc underscored the reasons behind RCR’s investments in Vietnam.
“After four years of its accession to the World Trade Organization, Vietnam’s limitations imposed on wholly foreign-invested projects in the environmental sector will be erased. Besides, the government is offering many investment incentives to investors like RCR.
“Thus, we can see big opportunities in our projects in Vietnam. Now is the good time to begin our projects,” Truc said.
On November 9, 2010, the prime minister trumpeted a pilot PPP legal framework, which is expected to bolster up private investment in the local infrastructure.
Accordingly, the government’s maximum stake in a PPP project is 30 per cent except for special cases approved by the prime minister. PPP investments are allowed in nine sectors including environment or waste treatment.
However, Truc said it would take at least one year for local authorised agencies to “fully understand” and “effectively implement” PPP environmental projects, including RCR’s projects.
RCR has been implementing its projects throughout the world, especially in the US, Brazil, Egypt, United Kingdom, China, Malaysia, the Philippines, South Africa and Scotland.
