9-Year Delay in Residential Area Project

A residential area project located on the Mỹ Trà – Mỹ Khê axis (phase 1) was approved by the Quảng Ngãi Provincial People’s Committee in 2015. The project is undertaken by Quảng Ngãi Construction Investment and Business Services Joint Stock Company (QISC).

Land Clearance Obstacles

Spanning an area of 19.4 hectares, the project is situated in Trương Quang Trọng Ward and Tịnh An Commune, in Quảng Ngãi City. With a total investment of nearly VND 400 billion, the project is expected to generate significant revenue for the province due to its prime location among other residential areas simultaneously being developed.

According to the Quảng Ngãi Provincial People’s Committee, the construction of the Mỹ Trà – Mỹ Khê residential area project aims to efficiently utilize the land fund, ensuring long-term and sustainable development for the area. The project also aims to develop the urban areas on both sides of the Trà Khúc River and bring about socio-economic benefits to the province.

Initially, the project was planned to be operational by the fourth quarter of 2018. However, after several adjustments, to date, only about 15 hectares of land clearance have been completed, and the remaining area is still occupied by residences and farmland.

Observations made by reporters reveal that the surrounding area of the project is covered in overgrown vegetation. The vicinity has become a dumping ground with dead trees, damaged electrical cabinets, and road infrastructure within the residential area has been damaged by heavy truck traffic, resulting in potholes. The entire project has been abandoned for a long period of time.

Võ Thị Mỹ Duyên, a resident living near the project, expressed her concerns. She initially felt optimistic upon seeing the construction, as she thought a vibrant residential area was about to be established. However, the area has now become overgrown and a gathering place for drug addicts.

Image Source: Business Today

Change in Investor

One of the reasons contributing to the project’s stagnation is the difficulties faced by the investor in determining the capital contribution before divesting state capital from QISC.

Specifically, in the land use fee collection plan of Quảng Ngãi Province, the Mỹ Trà – Mỹ Khê residential area was supposed to contribute 285 land lots, estimated to bring in VND 350 billion from auctions. However, due to continuous delays in investment and implementation, the investor could not auction off the land lots as planned.

On February 16, 2022, QISC unexpectedly announced the termination of investment activities in the Mỹ Trà – Mỹ Khê residential area project. QISC committed to taking legal responsibility regarding the legality, accuracy, and truthfulness of the documents submitted to relevant state authorities.

In early March 2022, the Quảng Ngãi Provincial People’s Committee issued a decision to terminate the legal effect of the investment plan (phase 1) and tasked the relevant agencies with carrying out the necessary procedures for investors to self-terminate the project, in accordance with regulations. The project was then transferred to the Quảng Ngãi Provincial Land Development Center for the development of an investment and operational plan.

Phạm Xuân Khánh, Deputy Director of the Quảng Ngãi Provincial Land Development Center, stated that the unit has been assigned to receive and develop the project since 2022. Up to this point, the project has already been invested more than VND 95 billion from the budget and bank loans. However, the center has only received documentation and has not yet been handed over the actual project site. Thus, the center plans to request repairs and improvements to the deteriorated infrastructure before taking over the project.

“We are finalizing the procedures for auctioning the land lots that have already had infrastructure investments. The remaining 3.8 hectares without infrastructure and 4.3 hectares without completed land clearance will be invested in the near future. We are focusing on resolving obstacles, completing the documentation, and then submitting it for consideration and feedback from relevant departments and agencies before proceeding with the project,” informed Khánh.

This article was authored by Business Today. For more information, visit Business Today.