USD4.6-billion project has investment license revoked
12-07-2012
 Dan-Ho Nui Coc Project |
On May 19, the company started the construction of the Dan-Ho Nui Coc Project, saying that it would involve total investment of VND97 trillion. Nguyen Minh Son, Chairman of the firm said the project included a road linking Thai Nguyen City with Ho Nui Coc tourism site and Road 262 connecting Doc Lim and Cong River and some urban areas.
However, just after the ground-breaking ceremony, Hanoi Design and Consulting JS Company (DCL) confirmed that Viet Bac SVA Real Estate Company were completely wrong to claim they were the project investor and that they were spending VND97 trillion on the project.
DCL said that it was the investor on the project, noting that the firm was implementing the first steps of the projects from planning to the submission of compensation for site clearance. All the papers related the project carried DCL’s name.
According to DLC, the plans for urban areas had just been appraised by the provincial Department of Construction, yet it had received the official approval from the local People’s Committee, therefore, the information about the project’s total capital had not been disclosed.
Viet Bac SVA Real Estate Company was jointly set up by DCL and SAV Financial Group to manage the project. However, due to lax regulations and the company’s business strategy, DCL asked the provincial People’s Committee to grant an investment license for the project. However, SAV could not make work with partners and banks because all the related papers carried DCL’s name.
To ensure the project would continue, Thai Nguyen People’s Committee revoked the license and gives it back to DCL.
