UAE firm awarded mammoth housing project in city
In a document issued by the city’s Office on Thursday, HCMC Chairman Le Hoang Quan suggested the company to develop the residential complex in Binh Khanh Ward for those residents affected by the development of Thu Thiem New Urban Area project. The approval came out after a meeting between Quan and Joe Ong, CEO of Tamouh.
Earlier, the UAE developer had prepared a huge property project in Thu Thiem, including residential and commercial facilities, but the project was rejected by the city government. The apartment complex project mentioned by chairman Quan is just a component of the previous project.
In his instruction, the city chairman asked the Department of Construction to support the developer in fulfilling the investment procedures to start up the project soon.
Nguyen Van Hiep, deputy director of the construction department, even suggested the developer to start work soon, breaking ground for the project next month. However, experts from Thu Thiem Invesment and Construction Authority told the Daily that it would take more time for completing detailed zoning plan and other administration procedures before the project could get off ground.
The complex of 2,500 apartments is part of the city’s large-scale program to build 12,500 resettlement houses for the Thu Thiem project.
The project will be located inside one of three resettlement zones in Thu Thiem, covering 38.4 hectares in Binh Khanh Ward.
Under the master plan for Thu Thiem, the resettlement complex should include high-rise condos, with the maximum height of 20-35 stories, and other public facilities such as schools, kindergartens, clinics, and parks to ensure decent living standard for resettled households.
Last year, the UAE firm submitted a plan to team up with a local partner in developing the Thu Thiem-Phu My City in the Binh Khanh resettlement zone. The plan, with total investment capital estimated at US$600-800 million, was envisaged to include trade centers, supermarkets, hotels, parks, office buildings, and apartments. However, the city government did not approve the project.
Coming back to Vietnam this time, Joe Ong said his company wanted to take part in the city’s social housing, infrastructure and real estate sectors. HCMC chairman Quan asked the Department of Transport to present a short list of elevated road and highway projects awaiting investors in the city.
Tamouh would send a group of experts to Vietnam to research elevated road projects listed in the city’s development plan, according to the statement of the HCMC Office.
According to the city authorities, the city would accelerate construction of 12,500 condo units for those relocated to make room for the 737-hectare new township.
In related development, the HCMC government has approved the plan for issuing municipal bonds worth VND20 trillion (US$1.12 billion) to prepare for Thu Thiem Peninsula development. The first issuing stage, scheduled for August and September this year, is aimed to mobilize VND4 trillion.
The HCMC Investment Fund for Urban Development will take full responsibility for introducing the issuing plan to potential investors.
The sum from issuing bonds will mostly go to compensation, site clearance and resettlement for the affected people in the project.
The site clearance and resettlement plan for some 10,400 households affected by the Thu Thiem project requires more than VND18.2 trillion, which will be partially financed by the city’s own budget. In 2007, the city’s budget disbursed VND3.36 trillion for this task, and the fund still falls short of VND14.87 trillion.
