Central Phu Yen Province plans to hand over land to the investor of the Vung Ro oil refinery project at the end of the year.— File Photo

HA NOI (Biz Hub)— Central Phu Yen Province plans to hand over land to the investor of the Vung Ro oil refinery project at the end of the year.

Le Van Truc, deputy chairman of the Phu Yen People's Committee, said that by the end of this month, the province would complete a compensation plan for people living on the land that will be used to build the refinery.

Deputy Prime Minister Nguyen Xuan Phuc said while working with the local authorities on Sunday that the province should hand over land to the investor as soon as possible.

In addition, he said, the investor should quickly complete all the procedures required to start construction.

The construction is expected to start at the end of this year and to be completed in four years.

Earlier, the province planned to give the Bai Goc port to the Vung Ro Oil and Gas Ltd Company so it could develop the port, which would benefit not only the refinery but also the Nam Phu Yen Economic Zone, Truc said.

The province allowed the oil refinery project to increase its investment capital from US$1.7 billion to $3.18 billion, which would double the oil refinery's annual output to eight million tonnes.

The plant would refine products from crude oil, including polypropylene, benzen, toluene, xylene, liquefied petroleum gas (LPG), Ron 92 petrol, Ron 95 petrol, diesel oil and fuel oil for both domestic and foreign markets.

Since the project was licensed in 2007, the investor – British Virgin Islands's Technostar Management Ltd – decided to increase investment based on market demand.

The oil refinery would be built in Hoa Tam Industrial Zone (part of Nam Phu Yen Economic Zone) on an area of 538ha, which includes 404ha for the plant itself and 134ha of land for the port.

The project is expected to help the central province attract other projects to the Hoa Tam Industrial Zone, especially those related to petro-chemistry and oil refinery support industries.

Besides supplying a significant volume of petrol products to the domestic market and thus reducing the country's dependence on petrol imports, the project is also expected to contribute roughly $111 million yearly to the State budget and generate about 1,300 jobs.

Representatives from the Ministry of Planning and Investment recommended the investor be given incentives such as exemptions from land use fees and crude oil import taxes. — VNS