Central Ninh Thuan province has killed a $900 million ecological urban project proposed by South Korea’s MK International.
The provincial people’s committee said it “had decided to end the memorandum of understanding (MoU) signed between it and MK International two years ago on developing the EEC Ecological Ninh Thuan Urban Project.”Administrative procedures ending the deal will be finished this month, a source at Ninh Thuan Department of Planning and Investmenttold VIR.
The source said the decision was made because MK International had done nothing to implement its commitment in the province. “We sent documents to ask MK International to implement its commitment, but it did not respond,” said the source.
MK International signed an MoU with Ninh Thuan People’s Committee to develop a $900 million ecological urban project in Phan Rang-Thap Cham city and Ninh Hai district. The project, covering 120 hectares, would have included an international hospital, an education centre, hotels, shopping and entertainment centres and residential areas.
The South Korean company estimated the project’s construction would be implemented within seven years finishing in June 2017. The first phase of the project was expected to be operational in 2012.
The coastal province has recently attracted the attention of many foreign investors as the government earmarked the site for two nuclear power plants. The provincial committee has also proposed a strategy to develop Ninh Thuan as a hub of green energy and tourism in central Vietnam.
Besides MK International, US-backed Federal Owens in 2010 proposed a $2.5 billion high-end tourism complex in the province’s Vinh Hy district. Meanwhile Hong Kong-based Polo Beach International Limited intended to develop a $4.5 billion Mui Dinh tourism complex in Thuan Nam district, comprising resorts, casino facilities, high-rise villas and a golf course. However, this project was not approved by the prime minister.