VietNamNet Bridge – Malaysian-backed Gamuda Berhad, developer of the giant Hanoi-based Gamuda City urban development has requested the Hanoi People’s Committee allow the firm to withdraw from Parcel B of the Yen So Park subproject. VIR’s Bich Ngoc talked with Gamuda Land Vietnam general director Cheong Ho Kuan on the reasons and what the future holds for the rest of the project.
What were the reasons for Gamuda’s withdrawal from Parcel B and what implications will this have on the rest of the project?
In order to implement the project, land clearance and compensation are supposed to be implemented by local authorities, specifically Hoang Mai district People’s Committee and Hoang Mai Land Fund Centre. The developer will advance the fee for land clearance to push progress forward on the project. The developer will be reimbursed the amount of advance payment.
However, specifically regarding Parcel B of the Yen So Park project, regulatory changes have dramatically increased land compensation costs from $20 million for both Parcel A and B (specified in the investment certificate dated December 3, 1997) to an estimated $150 million for Parcel B alone. We’re not in a position to advance such a huge amount and the authorities won’t clear the land.
According to Document 140/VP-UB, issued on July 8 by Hanoi People’s Committee, Parcel B would be developed on a build-transfer basis.
If the local authority completes the land compensation for Parcel B, Gamuda will continue to pursue the project. The change of investment mode for Parcel B is under the city’s jurisdiction and the developer would comply with that decision.
Hanoi People’s Committee agreed to redraft the plan for Yen So Park by adding residential land. Could you tell us more about this?
We would like to highlight that Gamuda did not propose this redraft. We only proposed that the site needed amending with additional residential land. This new draft also provides benefits to the residents such as lakes and open space. The overall development will benefit from this and they meet the overall needs of the master plan approved by the city’s people’s committee.
Gamuda City includes a variety of projects with different functions. What progress has been made on the various sub-projects?
Yen So Sewage Treatment Plant was completed and put into operation in 2012 after three years of construction.
Yen So Park – Parcel A (Cultural and Traditional Park) commenced in 2009 and was completed in 2010 in time for the city’s millennium celebrations. It was officially opened to the public this year.
The ‘functional-urban area’ or Gamuda Central with the completed waterfront and promenade garden is currently being built with 56 retail outlets. It is scheduled to be operational by the end of 2014.
Meanwhile, Gamuda is working with strategic partners on other investment components for area.
Gamuda Gardens officially started construction in 2012 and has completed the first phase with 364 terrace and semi-detached houses.
The houses with public gardens, playground and landscaping started being handed over to owners in April.
Other facilities and amenities including a club house, international school and an array of shop houses are being sped up to meet their scheduled completion dates.
Meanwhile the master plan scale 1:500 of Gamuda Lakes is being prepared for authorities.
VIR/VNN