Phan Dinh Phung project investor requests refund of many unreasonable costs

The Ho Chi Minh City Department of Finance has just sent a document to the Department of Culture and Sports for comments on the costs that investors have spent to implement the Phan Dinh Phung Sports Center Construction Project (abbreviated as Phan Dinh Phung Gymnasium).

Through reviewing the costs listed by the investor, the Department of Finance found that the Joint Venture of Compensation and Clearance Corporation and Phat Dat Real Estate Development Corporation had not clarified the costs during the implementation of the Project.

Although the project has not been implemented or started, the investor listed many unreasonable expenses such as: design competition award fees, sponsorship costs for sports activities, mid-shift meals, construction of billboards, design consulting costs for the Hyatt Regency Saigon Hotel Project, expenses related to the 3 Bis Phan Van Dat Project...

The abandoned Phan Dinh Phung stadium construction site in the center of Ho Chi Minh City. Photo: Le Toan

Through comparison with Decision No. 3861/QD-UB dated July 28, 2016 of the Ho Chi Minh City People's Committee, the Department of Finance found that the costs refunded to investors are the costs that have been implemented in the project such as: construction costs, equipment costs, project management costs, interest costs during construction period...

Therefore, the Department of Finance requests the Department of Culture and Sports to review, based on the total investment capital of the Project, the approved estimate, and the acceptance records of the items that the Investor Consortium has implemented, to consider paying valid expenses to the investor.

Previously, in April 2024, the Ho Chi Minh City People's Committee decided to stop investing in the Phan Dinh Phung Sports Center Construction Project under the BT contract form to switch to the public investment method.

After terminating the BT investment form, the City People's Committee has a policy to refund reasonable expenses that the Investor Consortium has spent to implement the Project.

According to the report of the Joint Venture of Compensation and Clearance Corporation - Phat Dat Real Estate Corporation, the cost that the investor spent to implement the Project was 171.6 billion VND. The investor requested the Ho Chi Minh City People's Committee to refund this cost when the Project was terminated.

Phan Dinh Phung Sports Center project is located on a "golden" land with an area of 1.44 hectares in the central area of District 3, Ho Chi Minh City.

On July 28, 2016, Ho Chi Minh City People's Committee issued Decision No. 3861/QD-UBND approving the project. In early 2017, Phan Dinh Phung Sports Center was demolished to build a new project.

But before the project could start, the BT investment form was "terminated" because the Law on Investment under the Public-Private Partnership (PPP Law) took effect from the beginning of 2021. Since then, the project has been stuck.

Due to the project being behind schedule for many years, the total investment has continuously increased from the initial level of 988 billion VND to 1,352 billion VND and has now increased to 1,953 billion VND.

Source: https://baodautu.vn/nha-dau-tu-du-an-phan-dinh-phung-de-nghi-hoan-tra-nhieu-chi-phi-chua-hop-ly-d298767.html