High-profile developer Nam Cuong Hanoi Group has quit one of its biggest township projects in Hanoi.
Hanoi People’s Committee recently assigned its Department for Natural Resources and Environment to get tough with eight long delayed projects in Hanoi, including Nam Cuong’s Thach That new urban area.
Located in western Hanoi, the 805 hectare Thach That has been delayed for a few years, and Nam Cuong general director Tran Oanh said the group decided to hand the project over to Hanoi authorities as it was not in Hanoi’s approved master plan.
Thach That New Urban Area is one of the big four real estate projects developed by Nam Cuong along the underway North-South Social-Economic Transport Route. In 2008, the former Ha Tay Provincial People’s Committee gave the right to Nam Cuong to develop four township projects before it was merged into Hanoi.
Nam Cuong would build a 63 kilometre north-south route under the build-transfer form with the estimated investment capital at VND7,700 billion ($366 million). In exchange, it was allowed to develop two new urban projects Quoc Oai and Chuong My to recover investment capital for the construction of the route.
In addition, it was also allowed to develop two other new urban areas Thach That and Thach Phuc under the form of land leasing. After starting the backbone in July 2008, the group has implemented some basic steps on land procedures with the four projects. However, when Ha Tay merged into Hanoi in 2008, the four projects and the backbone were up for review.
In July 2011 the prime minister approved the master plan for development of Hanoi to 2030 with vision towards 2050, and the Thach That project was defined as in the city’s green corridor.
Oanh confirmed that the abolition of Thach That project would not have any impact on the construction of the backbone and the other three urban development areas.
The group has finished the first 6.3 kilometre section of the backbone, land clearance and compensation for part of Thach Phuc project, finished the Thang Long over fly bridge with total invested capital at more than VND1,000 billion ($47.6 million).
Oanh said the group had asked the government and Hanoi People’s Committee to allow it to continue building the route and three remaining townships but had not received final decisions.