The UK-based Energy Group has decided to pull out of a coal-fired power project being constructed in the east of Taiwan. The company has been involved in the project for one year.
Although the Energy Group has given no reason for its withdrawal, local sources suggest that the project, called Full Power Corp, in which Energy Group was to have invested, is facing financial penalties after failing to meet a 30 June deadline to start supplying power to Taiwan Power Co (Taipower).
Government and Taipower officials have confirmed the penalties. Full Power now has to start delivering power by the end of August, and must put up a guarantee of over $8 million against this date.
Earlier this year the US company Mobil cancelled its involvement in the Hsin Tao Power Corp because the company was facing the same difficulties now engulfing Full Power Corp. Delays have been caused by a variety of difficulties, ranging from land acquisition to environmental concerns and bureaucratic problems.