Saigon Sunbay: Super-project sits stagnant
After seven years, the only completed features of the project are a wall surrounding the site built by former contract Dai Phu Gia-Anjeong consortium and a stone jetty lining 100 hectares of beach by local and current contractor Lung Lo-Sao Mai consortium.
According to people who live on the contract site, work halted immediately after completing the stone jetty right after Lunar New Year this year.
At the time, Lung Lo-Sao Mai had machines and construction crews on the site and work was in full gear, but since the holiday, no progress has been seen.
In early April, VIR contacted Can Tho Tourist City Corporation (CTC) and spoke with a company representative who confirmed that construction has now been halted for several months.
“We are making preparations for changes to the implementation plan,” he said, adding that the project would soon begin anew.
As per the initial design, Saigon Sunbay would cover 600ha including 200ha of beach and would cost a staggering $1.5 billion. The capital needed for site clearance and infrastructure development alone was estimated at $350 million.
Notably, the developer had also committed to creating a land fund by encroaching the sea and using the reclaimed land for site clearance.
Saigon Sunbay was divided into four zones: HeartBay (high-end resorts and hotels, diverse commercial, tourist and entertainment activities); LifeBay (high-end residential areas); EcoBay (floating resorts, green park, bungalow, spa, etc.) and BlueBay (beach and marina).
One of the main obstacles to the project’s progress was capital, the developer explained, saying that the project was based on the Ho Chi Minh City economic development forecast for 2007-2008.
Accordingly, the city was forecast to continue robust growth during that period, paving the way for developers to work on big projects and initiate plans to raise capital from partners. What happened instead was the financial and housing crisis and the developer was unable to source capital.
Asked by VIR on the current status of raising capital for the project, the company declined to respond about specifics, but said reports have been sent to city authorities and agencies, and steps were being taken to move forward.
One marked change at the project was the selection of new contractor, aforementioned Lung Lo-Sao Mai consortium, which is highly regarded and has a wealth of experience in hydraulic engineering and construction.
In late March VIR sent a dispatch to the Ho Chi Minh City Department of Planning and Investment requesting an up-to-date and transparent report on the project’s progress but an official response remains forthcoming.
Senior economist Nguyen The Hien, commenting on the case, said it was important for the developer to set progress targets. Otherwise city authorities would likely revoke the project’s licence or downsize its scale to devote more land to public tourism development, giving locals a better chance to involve in pushing forward tourism in the area.
