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Ho Chi Minh City acts to deal with 4 long-stalled underground parking lot projects

Ho Chi Minh City acts to deal with 4 long-stalled underground parking lot projects

Thursday, February 29, 2024, 13:18 GMT+7
Ho Chi Minh City acts to deal with 4 long-stalled underground parking lot projects
A view of Tao Dan Park in District 1, Ho Chi Minh City, where an underground parking lot was planned. Photo: Le Phan / Tuoi Tre

The Ho Chi Minh City Department of Transport has asked relevant departments and agencies to propose solutions to four underground parking lot projects which have been put on hold for nine to 15 years in the downtown area.

Such solutions should be put forward by March 10.

The four parking lot projects were planned under Le Van Tam Park, Tao Dan Park, Trong Dong Stage, and Hoa Lu Stadium, all in District 1. 

The municipal government green-lighted the underground parking lot project at Trong Dong Stage in 2009. Its investor is Indochina Group Co. Ltd..

The parking facility required a total investment of nearly VND900 billion (US$36.6 million). The project, which would include seven basements and three floors above ground, was expected to accommodate more than 700 cars and 400 motorbikes, Tien Phong (Vanguard) newspaper reported.

According to the municipal Department of Transport, the project has been facing difficulties in architectural planning.

Therefore, the department suggested assigning the Department of Planning and Architecture to work with the investor to reach a consensus on the project development plan.

The Department of Planning and Architecture will collaborate with the Department of Natural Resources and Environment to reassess policies aimed at streamlining the process for the investor leasing land for the project.

They will also review regulations pertaining to the issuance of investment certificates to the investor involved.

Meanwhile, a build-operate-transfer contract for the underground parking area at Le Van Tam Park was signed in 2009 with the investor being Underground Space Investment Development Corporation.

The project, which was estimated to cost some VND1.7 trillion ($69.2 million), was expected to accommodate 1,300 cars and 2,000 motorbikes when in place, according to Tien Phong.

As it lagged behind schedule, relevant departments and agencies managed to terminate the contract with the investor.

The investor later proposed extending the contract by 24 months to seek investment partners and contact international financial organizations. The company also suggested the city cover part of the loan interest.

In case of the contract being terminated, Underground Space Investment Development Corporation suggested that the city ask the new investor to take over technical dossiers of the project developed by the corporation and pay all or part of the amount that the corporation had invested in the project.

However, local departments and agencies said the proposal was baseless as the investor infringed the contract.

The Department of Transport urged the municipal administration to ask the Department of Justice to cooperate with the Department of Planning and Investment to instruct the termination of the contract with the investor, while the Department of Planning and Investment and the Department of Natural Resources and Environment should deal with the revocation of documents related to investment and land for the project.

Parking lots under Tao Dan Park and Hoa Lu Stadium were approved in 2015. Their investor is a consortium of Vietnam's largest private conglomerate Vingroup and SSCI Company.

The city has extended the deadline for the completion of the feasibility report for the project three times. However, the investor failed to complete the report and announced an end to a contract for the projects.

The Department of Transport recommend that the municipal People’s Committee issue a decision to terminate the contracts for these two underground parking lot projects.

The four-story underground parking lot at Tao Dan Park carried a price tag of over VND1 trillion ($40.6 million) and was designed to accommodate 1,198 cars and 896 motorcycles.

The facility at Hoa Lu Stadium needed an investment of VND3.4 trillion ($138.2 million) and was envisaged to have five basements, enough for 2,548 cars and 2,873 motorcycles, news site VnExpress reported.

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Thanh Ha - Duc Phu / Tuoi Tre News

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