Lastest Tan Tao project on path to demise
Lastest Tan Tao project on path to demise
Another project invested by Tan Tao Group in the central province of Quang Ngai is put on the warning list due to failing to meet the construction deadline.
The Quang Ngai People’s Committee has sent a document to Tan Tao Group subsidiary Vina Film Studio and Tourism Zone Investment JSC to urge the implementation of its long-delayed Vina Universal Paradise Trade and Service Complex (Vina Universal Paradise).
The document stated that accelerating the construction progress is an important duty ensuring the requirements of the province’s urban development plan as well as creating stable lives for residents.
Licensed in 2008, the project has the total investment capital of VND1.2 trillion ($54.3 million) and it was planned to be build on an area of 56.5 hectares in Son Tinh district and slated in the 2008-2012 period.
According to the original plan, the project was going to be completed within four years and would include a residential area of 237 houses, 183 villas with gardens, and 56 bungalows, or one-storey wooden houses, a public area, as well as five trade-service blocks.
Construction has been implemented slowly. As of now, the investor has yet to complete the compensation payments and build the resettlement area for residents. According to the local residents, the long delay in construction has turned the project area into a waste land because it has been lying abandoned for years, while residents do not have land for cultivation or construction.
Previously, the investor proposed the provincial leaders to extend the deadline to 2018 to complete the final stage, including the trade-service and accommodation areas. However, the investor failed to meet the new deadline.
The Quang Ngai People’s Committee thus suggested that the investor reduce the scale of the project, while simultaneously seeking to co-operate with the provincial authorities to deal with difficulties.
Vina Universal Paradise is one of three projects Tan Tao’s subsidiary registered to invest in Quang Ngai. The two remaining ones are Vina Universal Studio-Resort (Vina Universal) and Pho Phong industrial park.
In 2008, Tan Tao’s subsidiary was licensed to develop Vina Universal with the total investment capital of $50 million. The project was planned on a combined land and sea surface area of over 2,500 hectares. Because the project start was continuously delayed, in 2011 the province revoked its investment certificate. At the time, Vina Film Studio and Tourism Zone Investment JSC requested to give up the project because of financial difficulties.
Regarding Pho Phong IP, the 157ha project was licensed in 2009 with the total investment capital of VND285 billion ($12.8 million). The investor had pledged to finish construction by early 2012. However, no stages had been implemented yet, and as the result, the investor had its investment certificate revoked in May 2014.
