Ho Chi Minh City revokes Phan Dinh Phung stadium project

The Phan Dinh Phung stadium project in District 3, which was invested under the BT (build-transfer) model, has been revoked by Ho Chi Minh City and switched to public investment, after a 10-year delay.

This information is stated in the concluding announcement of the Chairman of the Ho Chi Minh City People's Committee, Phan Van Mai, regarding the construction project of the Phan Dinh Phung Sports Center at 8 Vo Van Tan Street, District 3. The investor of this project is Phat Dat Real Estate Development Joint Stock Company.

The Phan Dinh Phung Stadium project received investment approval from the management agency under the BT (build-transfer) model in 2008 and commenced implementation in March 2010. This is one of the few projects that the Prime Minister agreed to continue implementing under the BT contract after this method was suspended in 2019.

The Phan Dinh Phung Gymnasium project, District 3, July 2023. Photo: Quynh Tran — The Phan Dinh Phung Gymnasium project, District 3, July 2023. Photo: *Quynh Tran*

Initially, the project had an investment of 988 billion VND, with a design of 7 above-ground floors and 3 basement floors, built on a plot of land exceeding 14,400 m2, of which the construction area was over 7,100 m2. According to the contract, the city paid the investor for the land at 257 Tran Hung Dao Street in the heart of District 1.

However, in 2013, the project's cost escalated to over 1.352 billion VND. The Ho Chi Minh City People's Committee requested the addition of land at 3-3 bis Phan Van Dat Street in District 1 to compensate the investor. By 2016, the project's feasible investment capital had reached over 1.953 billion VND, double the initial amount. The city then requested the addition of 3 hectares of land in the Phu Tho racetrack area to settle the contract.

Currently, the land plots proposed for payment under the BT contract for the Phan Dinh Phung stadium project include lots at 257 Tran Hung Dao, Phan Van Dat, 181 Dien Bien Phu (Binh Thanh District) and 72/2B Vo Van Ngan (Thu Duc City).

Apart from the land plot on Tran Hung Dao Street, which has been approved by the Prime Minister for payment for the project, the remaining plots all require the opinion of the Steering Committee 167 on the rearrangement of public housing and land.

Late last year, the Ho Chi Minh City People's Committee established an inter-agency task force headed by the Department of Planning and Investment, along with relevant departments such as Culture and Sports, Justice, Construction, Natural Resources and Environment, and Finance, to address obstacles related to this project.

Following the directive of the Chairman of the Ho Chi Minh City People's Committee, Phan Van Mai, along with halting the BT project, relevant departments and agencies are reviewing the legal basis, examining the work already performed by the investor, and determining the costs in order to negotiate and resolve the issue definitively according to reasonable and harmonious principles.

The city plans to submit the new investment plan for the project, using the public investment method, to the Ho Chi Minh City People's Council at the July session. Funding will be allocated during the 2021-2025 period. The city aims to commence construction before April 30, 2025.

Le Tuyet

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