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Cash worries for Cat Ba project
GIICO International Investment Corporation’s major tourism property complex in Haiphong’s Cat Ba Island is facing cash shortages and design difficulties.
“We are really anxious about the capital for our $630 million Venus Cat Ba-Halong International Resort Complex. At present, what is worrying us most is how to have enough money for the project’s site clearance,” said the corporation’s Chairman Ha Manh Dung.
He told VIR that previously the site-clearance cost was estimated to be VND20 billion ($1.08 million). However, it had already trebled due to Decree No69/2009/ND-CP on additional land use planning, compensation and resettlement support regulations.
The decree, effective from October 1, 2009, stipulates that farmers with reclaimed agricultural land are compensated by localities or/and investors by an amount 1.5-5 times higher than the existing price of the reclaimed agricultural land.
“The project’s 10 shareholders are throwing their own money into solving this problem. We also have had to make plans to borrow capital from other investors and commercial banks for the construction of the complex,” Dung said.
Located on Cat Ba Island, the project will cover 445 hectares in Xuan Dam, Gia Luan, Hien Hao and Cai Vieng areas as well as Cat Ba’s other neighbouring communes, except for primeval forest within the world-recognised biosphere area.
The complex is scheduled to be completed by 2021. The major complex is divided into sub-projects such as three Asian, European and Middle East-style resort areas, two high-end hotel areas, 599 high-end villas, insurance financial trading centres, a golf course, an amusement park complex and health care services.
“However, we have yet to have a specific detailed design for the complex. Many US, Singaporean, Chinese and Israeli architects have offered their designs for the complex. But, we will have to carefully appraise them,” Dung said.
Le Thi Kim Lien, the project’s consultant lawyer, said because the complex was located by the world-recognised biosphere area, its waste water treatment and anti-environmental pollution components would be key priorities.
“In the coming time, 30 world-leading architectural groups will come to Vietnam to attend a design competition for the complex. I think, it will take at least three years for all necessary procedures of the project to be completed,” Dung said.
GICCO’s complex project is expected to be licenced in early 2010 and it will employ some 5,000 local unskilled labourers and 1,000 skilled labourers. “If every thing goes smoothly, construction will begin on May 1, 2010 or September 2, 2010 at the latest,” Dung said.
VietNamNet, VIR
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