A Company Demands Province of Quang Nam to Return 54.6 Billion VND
Quang Nam province has received a letter from the Department of Planning and Investment (DPI) requesting the organization of a meeting related to the construction project of Dien Duong Fishing Village Service – Tourism Residential Area (in Dien Ban town, Quang Nam province).
According to the DPI, the project is led by Bestcon Construction Joint Stock Company and was approved by the People’s Committee of Quang Nam province in 2016. It covers an area of 24.17 hectares with a total investment of approximately 199 billion VND. The project started in 2016 and was scheduled to be completed by the end of 2020.
As of now, Bestcon Construction Joint Stock Company has completed the establishment of base design documents, construction drawing design documents, and received approval from the People’s Committee of Quang Nam province for the 1/500 planning scheme, as well as the approved environmental impact assessment report.
The company has already transferred over 29.79 billion VND for compensation, land clearance, and resettlement purposes. However, the project has not been allocated land or granted permission for construction by the People’s Committee of Quang Nam province.
Due to numerous difficulties and obstacles in the compensation and land clearance work, on June 14, 2023, Bestcon Construction Joint Stock Company announced the termination of the project. However, the company conditioned the return of the project to the province of Quang Nam on the acknowledgment and settlement of all the costs that the company has incurred during this period, totaling more than 54.6 billion VND.
Specifically, the company is requesting Quang Nam province to reimburse the following amounts: more than 2.2 billion VND for design and planning work, over 29.7 billion VND for compensation and land clearance, 657 million VND for investment preparation work, over 3.9 billion VND for land leveling and infrastructure construction, more than 2.9 billion VND for business management costs, and over 15 billion VND for bank loan interest.
The DPI of Quang Nam province believes that Bestcon Construction Joint Stock Company’s announcement of the project’s termination is in accordance with the legal provisions. However, the requirement to conditionally terminate the project and return it only when Quang Nam province acknowledges and settles all the costs incurred by the company during this period, especially the business management costs, bank loan interest, land leveling, and infrastructure construction costs, has no basis for resolution.
The DPI of Quang Nam province has requested the People’s Committee of the province to organize a meeting with the company to discuss and agree on the approach to handling the costs proposed by Bestcon Construction Joint Stock Company.