The Ministry of Environmental Protection has rejected a large chemical project in Guizhou province, with an investment of 17 billion yuan ($2.6 billion) due to the risk of polluting the environment.
The ministry has released results of eight projects, including the construction of an airport, hydropower station and port on its official website.
Among those, the environmental impact assessment of the project producing polyolefin, a chemical material, in Guizhou province was rejected.
The ministry said the project planned to locate in a region adjacent to underground water channels, which could have posed huge risks of contaminating the water.
The project failed to provide solutions to control airborne pollutants including sulfur dioxide, which may have been discharged during the production process, and also had huge risks to pollute the air, the reply said.
In addition, the project did not set up a proper emergency plan to cope with other risks.
The company can apply for an administrative review within two months or file administrative lawsuits within six months, the response said.
The project was proposed by domestic energy giant Sionpec as its key project in Southwestern China, said a report on Wednesday.