Dong Nai's economic growth at risk due to power project delays

Land acquisition challenges are significantly delaying critical power infrastructure projects in Dong Nai Province, hindering the region's economic growth.

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Many pillars have been installed, but Tam Phuoc transformer station still cannot be put into operation due to land issues


Dong Nai Province, one of Vietnam's top three electricity consumers, is experiencing significant delays in its power infrastructure projects due to land acquisition challenges. The province, with numerous industrial zones and major transportation projects underway, faces a rapidly growing electricity demand.

To meet these demands, the power sector has embarked on various power plant, substation, and transmission line projects. However, these endeavors have been impeded by protracted land clearance processes.

The 220kV Tam Phu substation project, situated in Tan Mai neighborhood of Phuoc Tan Ward in Bien Hoa City, serves as a prime example of these delays. Despite some installation progress, the project remains stalled due to residential areas that have yet to be cleared and compensated.

Do Xuan Thanh, Head of Tan Mai neighborhood, reported that the project, initiated in 2017, has yet to be operational, and that 15 cases are still pending compensation approval due to overlapping planning issues.

Similarly, the 500kV Long Thanh substation, intended to support the to-be Long Thanh International Airport and local industries upon its commissioning in September 2022, has faced setbacks. The connecting transmission line to the substation is incomplete, and compensation plans for 5 transmission tower foundations as well as 38 papers for power line corridor have not been approved.

Moreover, the Song May - Tam Phuoc 220kV line (located in Trang Bom District), scheduled for completion in November 2022, remains unfinished with 8 out of 29 tower foundations lacking compensation plans and 28 households have not agreed to hand over their land for the power line corridor.

Since 2017, the power sector has planned 12 high-voltage transmission line projects in Dong Nai Province. However, only two have been completed, five are behind schedule due to land acquisition issues, and five upcoming projects are entangled in land use and urban planning conflicts. The Song May - Tam Phuoc 220kV line project, for instance, has been delayed due to the need to transfer land use plans to 2023 before compensation approval can be granted.

In Long Thanh District, not only high-voltage but also 110kV power projects have faced delays. The division of land into multiple segments and varying compensation rates has led to public discontent. Verification processes and delays in transferring compensation funds by investors have further hindered land acquisition.

Acting Chairman Vo Tan Duc of the Dong Nai Province People's Committee emphasized the province's growing electricity demand, driven by ongoing and upcoming major national and provincial projects that have been approved before.

To ensure a stable and continuous power supply, the power sector must proactively implement planned projects and collaborate with relevant agencies and localities to promptly address emerging challenges, accelerate construction, and expedite project completion.

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