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Huynh Minh Nhut, director of HCMC Urban Environment Co., said at a meeting on issues at the waste treatment complex Tuesday that the landfill was invested with VND976 billion and designed to receive 2,000 tons of garbage per day. It was put into operation on October 1, 2013 and its investment capital will be recovered in nine years as initially planned.

However, part of the garbage at the landfill has been transforred to Da Phuoc integrated waste management facility in Binh Chanh District for treatment in line with the city’s plan, and the landfill at Phuoc Hiep will no longer get garbage for treatment as from the end of next month.

Nhut said that the South Korean contractor KBEC has spent over VND400 billion buying equipment at the landfill. If the landfill is shut down, the company may be sued by the Korean partner for failing to complete components under the signed deal.

In addition, 300 workers may lose their jobs.

At the meeting, HCMC vice chairman Le Manh Ha told HCMC Urban Environment Co. to report in detail the components which have been invested. Ha said it will be wasteful if the landfill is closed.

“Who will pay for the losses of the nearly VND1-trillion landfill if it is closed after one year of operation? The money used for compensation will come from the State budget and tax payments by citizens,” Ha said.

Since 2007, local and foreign investors have invested in new waste treatment facilities such as the plant worth nearly US$64 million of Vietstar Co. in Cu Chi, the Tam Sinh Nghia plant worth VND774 billion also in Cu Chi District, and Da Phuoc in Binh Chanh District invested with over US$90 million by Vietnam Waste Solutions Co.

In addition to the landfill at Phuoc Hiep complex, one Japanese firm has plans to invest US$100 million in a facility to treat waste and generate energy in HCMC.