$4.1bn Saigon Atlantic stuck beneath the waves
25-07-2012
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At the end of June, Winvest Investment asked Deputy Prime Minister Hoang Trung Hai to assist with its land clearance issue which had delayed the project for four years. Hai immediately ordered Ba Ria-Vung Tau Provincial People’s Committee to get to the bottom of the issue.
Saigon Atlantic received its first investment certificate in November, 2007 with total registered capital of $300 million. Two years later, the developer decided to expand its investment capital to $4.1 billion, making it one of the largest tourism projects in Vietnam.
The resort covers 307 hectares of land and 610ha of land reclaimed from the sea and once completed, it will comprise 332 villas, 11,960 five-star hotel rooms and 16,127 high-end apartments. The developer also estimated this project would create 15,000 jobs for locals. As initially planned, the site clearance had to complete within 2009. However, approximately 100ha out of 307ha has been cleared despite efforts to seek local governmental solutions.
“There are many problems related to the calculation of land compensation. There are also a lot of claims from residents,” said Huynh Xuan Vinh, vice head of Foreign Cooperation and Investment Division, under Ba Ria-Vung Tau Provincial Department of Planning and Investment.
Last year, the developer paid $4.71 million in advance for site clearance while the local government pumped nearly $4.8 million to handle this issue. However, this was not sufficient. The project’s site clearance has made no progress during last 12 months.
The total estimated compensation for the project’s site clearance is more than $28.81 million. Vinh said the province had difficulties in mobilising this sum.
