Provinces warn lagging projects

Tuesday, May 07, 2013 15:09

Foreign tourists visit Thap Ba (Ponagar Tower) in the central province of Khanh Hoa. The provincial authorities are considering whether to revoke licences of six tourism projects in the near future. — VNA/VNS Photo Anh Tuan

HA NOI (VNS)— Long-delayed projects in the tourism real-estate sector might have their investment licences revoked, authorities in some central provinces have warned.

Vo Tan Thai, director of Khanh Hoa Province's Department of Planning and Investment, said work on 32 projects on the north of Cam Ranh Peninsula was slow despite repeated warnings and extended deadlines.

Russia's Gerrad Holding Limited was licensed in August 2008 to develop the US$100 million Mirax Cam Ranh Resort project in the province. But despite pledging to finish work in three years, little has been done because of difficulties in arranging land clearance and compensation.

Some other projects such as the five-star Hotel Hyatt Regency in Cam Ranh Bay and Manna Luxury Holiday Resort, a joint venture between Bo Bien Vang Ltd Co and the Israeli Rafaeli Group, were also slow-moving.

"We may have to revoke investment certificates for six projects in the near future," Thai told

"Most investors have faced financial shortages. If we withdraw licences, we would not know who will be assigned to complete the projects."

A similar situation exists in Phu Yen Province, home to many large foreign-invested tourism projects. Hon Ngoc Bai Tram and Sao Viet resort projects worth a total of $90 million have finished part of their projects, but many other investors, particularly the $4 billion NewCity resort and luxury hotel complex, remain idle.

Meanwhile, Binh Dinh Province has also issued a red warning for two sluggish tourism projects, Vinh Hoi and Hon Ngoc Viet Nam.

"We may revoke licences for the two projects if work is not completed soon," provincial People's Committee deputy chairman Ho Quoc Dung said. — VNS

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