Doubts are hanging over Guang Lian Steel Company’s $4.5 billion steel manufacturing project.

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A year after the government approved the investor’s proposal for investment expansion from $3 billion to $4.5 billion, Quang Ngai People’s Committee has not yet granted an amended investment certificate for this project and the Taiwanese-Thai joint venture has not yet shown the financing endorsement from bankers.

A Dung Quat Economic Zone Management Authority source said the provincial authority wanted to see the investors’ strong commitment and financial ability before granting the certificate.

The request implies doubt over the project after Guang Lian Steel Company had delayed construction for four years, from 2006 to 2010. Last year, Vietnam Steel Association also raised doubts over the investment expansion, describing the proposal as a tactic to delay the project.

If the certificate is granted, Guang Lian Steel Company will have another four years to build this plant, extending the construction timeline to eight years since it was originally licenced.

Guang Lian, firstly invested by Thailand’s Tycoons Worldwide Group and Chinese Jian Steel and Iron Group, was licenced in 2006 with total investment capital of around $1 billion.

One year later, Taiwan’s E-United Group replaced Jian Steel and Iron Group and took a 90 percent stake in the project, establishing Guang Lian Steel Company. It also increased the regietered investment to $3 billion.

A Guang Lian source said the company had invited bankers to Vietnam to endorse the financing for the project, but the bankers in Taiwan “want to see the amended investment certificate first”.

“It’s like a vicious cycle as provincial authority wants to see the endorsement from bankers first while the bankers also want to see our amended investment certificate first,” she said.

Last week, Quang Ngai People’s Committee leaders met to discuss the certificate. However, no conclusion was revealed.

The provincial authority is schduled to meet with Guang Lian this month where the company’s source said Guang Lian expected concerned issues would be resolved.