'Burying capital' in Con Khuong new urban project for more than 6 years, Van Phu - Invest calls for help

The Government Office has just forwarded to the Ministry of Planning and Investment the proposal of Van Phu - Invest Joint Stock Company to the Government Steering Committee, regarding removing obstacles for the new urban area project of Con Khuong, Can Tho City.

Con Khuong new urban area is designed and built according to the model of a modern riverside urban area - Photo: VP

Van Phu - Invest Investment Joint Stock Company has proposed to remove difficulties for the Con Khuong new urban area project, especially problems in site clearance.

Up to now, the site clearance work of phase 1 and phase 2 of the Con Khuong new urban area project is unfinished, so the investor has not been able to start construction.

The Con Khuong new urban area project is invested by a joint venture of Van Phu - Invest Joint Stock Company and 216 Joint Stock Company, located in Ninh Kieu District and Binh Thuy District (Can Tho City), with a land use scale of nearly 52.3 hectares and a total investment capital of nearly 4,980 billion VND.

The project was approved by the Can Tho City People's Committee in April 2019 for investment policy, approved the detailed planning 1/500, announced the planning, marked the site clearance, approved the fire prevention and fighting design, and environmental impact assessment report.

The consortium of investors also made investment deposits and advanced money to carry out site clearance work, but to date many households have not received compensation.

In a recent document sent to the Government's Steering Committee for reviewing projects, Van Phu - Invest Joint Stock Company said that the company has used equity to pay for project implementation costs since 2019 and for site clearance.

As of September 2024, the company has spent 240 billion VND on the project. With this amount, if the project is delayed by 1 year, the company will lose about 27 billion VND (calculated according to the interest rate the company is currently borrowing from commercial banks, about 11%/year).

Furthermore, the project's delay for many years forced the company to take measures to set aside provisions, directly affecting business profits and the company could not explain to shareholders.

To remove difficulties for the Con Khuong new urban area project, Van Phu - Invest Investment Joint Stock Company, representing the consortium of investors, proposed that the Steering Committee of the Government, the People's Council, and the People's Committee of Can Tho City consider and direct the removal of obstacles so that the project can be implemented soon, avoiding waste of land resources and corporate financial resources, contributing to the implementation of the approved planning of Can Tho City for the period 2021 - 2030, with a vision to 2050.

Source: https://tuoitre.vn/chon-von-tai-du-an-do-thi-moi-con-khuong-hon-6-nam-van-phu-invest-keu-cuu-20250120131322933.htm