What do investors say about being 'stuck' in a nearly 800 billion project?

More than 1 year without land valuation, project lies idle

The Bac Pho Chau 1 urban residential area project has a total area of ​​over 10 hectares, with a total investment of nearly 800 billion VND, implemented in the form of land acquisition and site clearance compensation by the State. The investor implementing the project is Hano-vid Real Estate Joint Stock Company (Hano-vid). Hano-vid was approved by the People's Committee of Ha Tinh province as the project investor according to Decision No. 1921/QD-UBND dated June 22, 2020.

Many rows of houses have completed the rough construction.

Project implementation contract No. 05/2020/HD-DTDA dated November 11, 2020 between the People's Committee of Ha Tinh province and Hanoi stipulates the time when the investor must fulfill its obligations under the contract, including completing the advance payment of compensation and site clearance costs; paying the state budget; investing in construction of the project in accordance with the contents signed between Party A and Party B before June 7, 2022.

However, the contract expired and the investor had not yet received the land, leading to the inability to proceed with construction. The two parties were forced to extend the contract for another 18 months with a clause specifying the term from the date the investor received the land on site.

In Notice 284/TB-UBND issued by the People's Committee of Ha Tinh province at the meeting on July 18, 2022, the province agreed to "assign the Department of Natural Resources and Environment of Ha Tinh based on the above-mentioned data on land allocation and lease and the existing records of the project, to carry out the records and procedures for determining the specific land price of the project in a timely manner in accordance with regulations; complete and submit to the Provincial People's Committee for approval of the specific land price at the same time as allocating and leasing land to implement the project before August 30, 2022".

But since then, more than a year has passed without any land valuation being issued. Investors are still unable to exploit the assets.

Delayed land handover due to unclear regulations

According to Hano-vid, after signing the project contract, this investor coordinated with the People's Committee of Huong Son District to complete the payment of compensation and support for site clearance, and the People's Committee of Huong Son District issued Document No. 21/TTr-UBND dated February 17, 2022 requesting the Provincial People's Committee to allocate and lease land for the investor to implement the project.

Bac Pho Chau 1 urban residential area project has a total area of ​​over 10 hectares.

The Department of Natural Resources and Environment of Ha Tinh has also assessed, confirmed the eligibility and advised the Provincial People's Committee to allocate and lease land to investors to implement the project in Document No. 1721/STNMT-DD22 dated May 24, 2022.

However, the People's Committee of Ha Tinh province said that "in the immediate future, land allocation and land lease to implement the project as requested by the Department of Natural Resources and Environment in Document No. 1721/STNMT-DD22 dated May 24, 2022, because the project does not have a specific land price" (quoted from Notice No. 284/TB-UBND dated July 18, 2022).

Different views between the Department of Natural Resources and Environment and the People's Committee of Ha Tinh province have left the investor stuck. The investor has actively coordinated with relevant local agencies to clear the site and sent documents requesting land allocation for project implementation but has still not been allocated land.

In fact, Hano-vid has brought in contractors to construct. Up to now, Hano-vid has not made any profit on the project land that was approved by the People's Committee of Ha Tinh province as an investor. Recently, the People's Committee of Huong Son district submitted a document to the People's Committee of Ha Tinh province requesting administrative sanctions against this investor.

Responding to this issue, a representative of Hano-vid admitted that there were violations in the construction implementation when the land had not been allocated, but the enterprise will continue to work with the authorities on the level of punishment because there are many objective factors from the delay in land allocation, which greatly affects the business activities of the enterprise.

Before Decree 10/2023/ND-CP amending and supplementing a number of articles of the decrees guiding the implementation of the Land Law dated April 3, there was a reality in the process of handing over land to investors that each locality applied a different method: some places required land valuation before handing over, some places did the opposite.

This has also caused many difficulties for investors, of which the Bac Pho Chau 1 Residential Area project is an example. The newly issued Decree 10 has contributed to solving the bottleneck in many projects with the regulation: projects that have not yet transferred or leased land have no basis for determining land prices. Hopefully, this will "untie" investors in receiving land handover, and soon put the project into business operations.

Quick view 8pm: Panoramic news on September 9

Source link: https://thanhnien.vn/ha-tinh-nha-dau-tu-noi-gi-ve-viec-mac-ket-tai-du-an-gan-800-ti-185230909123342027.htm