Delays in site clearance compensation have stalled a $9.8bn steel project in the central Ninh Thuan Province, Vietnam that was scheduled to open by 2010

The Ca Na Project, in Phuoc Diem Commune, is financed by the Vietnam Shipbuilding Industry Corporation (Vinashin) and Lion Group of Malaysia.

The facility is to have two steel mills with an output of 4.5Mt/y, two thermo-electricity stations with a combined capacity of 1450MW, a seaport and other factories for steel production.

The project covers an area of over 1000ha, including the province’s Ca Na salt field and onshore fishing area. Around 500 households in the commune have given up their land for the project. However, compensation for land clearance has been delayed with only half of VND148bn ($8M) handed out to local residents.

The families have not been able to start new businesses or turn to traditional salt production or fishing to earn a living.

Source: Vietnam News, Hanoi; 28 Sept 2009