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Winning bidder retreats in ‘golden triangle’ controversy
The winning bidder of a prime land lot in downtown Ho Chi Minh City has withdrawn from the project after the Government Inspectorate proposed to the central government that the auction results are annulled.
The so-called “golden triangle,” a 13,000-square-meter plot located between Tran Hung Dao, Pham Ngu Lao and Nguyen Thai Hoc streets in District 1, was planned as a trading area with office complexes and luxury hotels.
The Bank for Investment and Development of Vietnam (BIDV), key member of the Thai Son consortium, said they had discussed the issue with other members before reaching the decision to withdraw.
BIDV said the effectiveness of the project had been affected due to disputes and complaints (by another bidder), and the consortium wished to avoid unnecessary disputes.
Other members of Thai Son consortium include Thai Son Construction Co., Chi Thanh Investment Co., Anh Duong Financial Investment Co., BIDV Land Co., Hanwha Construction Co., Hanshin Construction Co., and Hanwha Galleria Co.
One member of the consortium had issued a decision about its withdrawal from the project early this month, Tuoi Tre newspaper on Friday quoted an anonymous source as saying.
On April 3, the Government Inspectorate said it has proposed a solution for the case to the Prime Minister after finding shortcomings in the HCMC People’s Committee’s conduct of the auction.
Inspectors said the committee had neither reported to the Prime Minister nor studied advice from central agencies before holding the auction, which had led to some inadequacies.
The committee had not evaluated properly the financial criteria for investors and the bidding document’s content was not in line with relevant regulations, the inspectors said.
They also found that the committee had approved some documents without authorization. This had led to the modification of bidding documents, changed criteria for bidders affecting the results of the auction.
The Government Inspectorate put forward two proposals apart from canceling the auction result, which would grant it to the Thai Son consortium or the loosing bidder which had lodged the complaint – the Khanh Gia consortium.
However, the inspectors added that granting it to either bidder would damage the trust of investors and the credibility of HCMC People’s Committee.
In April, the People’s Committee approved a VND5-trillion (currently US$281 million) bid for the prime lot made by the Thai Son consortium.
The consortium planned to build a 55-story skyscraper on the 1.3-hectare land.
After the auction, Khanh Gia consortium, formed by Vietnamese company Khanh Gia and South Korean firms Ssangyong, Doosan and Punkyung, said the process had not been transparent and convincing. The allegation prompted the prime minister to instruct the Government Inspectorate to probe the matter further.
TT, TN
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