About the continuation of the An Hoa Trade Center Project
Mon, 27 Nov 2017 13:26:00 | Print | Email Share:
Name of recommendations: About the continuation of the An Hoa Trade Center Project
Status: Responded
Recommended by units: The Hoang Phu Co., Ltd (Le Duan Street, Phu Thuan Ward, Hue City, Thua Thien Hue Province)
Official letter: No 1680/PTM - VP, dated: 2017-07-14
Recommended contents:
An Hoa Trade Center (Le Duan street, Phu Thuan Ward, Hue City) was granted the construction investment license No. 311110000193 by the People's Committee of Thua Thien Hue Province (November 24, 2010). Project Owner - Hoang Phu Co., Ltd (Hoang Phu Company) is a member of Hoang Kim Co., Ltd. According to the estimates, the total investment of the project is USD 36 billion (including equity capital of the investor is VND 10.800 billion, loans from credit institutions is USD 25.200 million). Hoang Phu Company planned to invest and borrow capital from credit institutions to start the project.
The An Hoa Trade Center project was expected to complete in November 2011. However, by 2015, the project was unable to complete due to many following objective reasons:
- Due to the Hoang Phu Co., Ltd has converted to the Hoang Phu Co., Ltd from June 2010. The procedure for conversion was 1 year. Until June 3, 2011, the Thua Thien Hue Construction Department has granted construction permit No. 79 / GPXD to the Hoang Phu Company.
-Due to changing the design by the old design of Hoang Phu Co., Ltd, the height of the car transporting goods into the An Hoa Trade Center was 3.6 m and be no longer appropriate, when Hoang Phu Company received an adjustment, the height of the vehicle was 4m. Therefore, the time of completion of the project was no longer in line with the target of November 2011.
After the full design as prescribed, the Hoang Phu Company deployed to build a number of items such as casting piles foundation, building foundation, manicure, corridor surround, water supply system, prevention and treatment of fire, sewage system, etc. Hoang Phu company also completed the ground leveling, raising the ground higher than the historical flood level (in 1999) was 01 meters, at the same time, we will have to complete solid foundation for heavy vehicles coming out into the works. By the end of 2011, the Hoang Phu Company completed the phase 1 foundation, eligible for the mortgage of counterpart fund when borrowing.
On July 25, 2011, Hoang Phu Company has made a proposal to confirm the project of building An Hoa Trade Center is a key project and approved by the Chairman of Hue People's Committee. The company has applied for loans of credit institutions according to the policy applied for key projects
However, with the policy of the Government to prioritize the development of supporting industries, agriculture and rural areas, small and medium enterprises, export enterprises, and reduce the proportion of credit loans of the area. The non-manufacturing sector includes the construction sector in 2011, so the project of building an An Hoa commercial center, though being confirmed as a key project, has not been financed by any credit institution. This is an objective difficulty that Hoang Phu Company and most construction companies encountered during this period across the country.In the difficult financial situation, Hoang Phu Company tried to find the capital to complete some works: The project finished casting all 68 concrete pillars with 6.8 meters high; completed construction of 720m² floor area with 6.8 meters high, finished casting the second floor with 3.6 meters high, screed floor and sprayed concrete floor on the second floor. In 2013, 2014 and 2015, the Hoang Phu Company submitted an application for extension of the construction schedule and approved by the Director of the Department of Planning and Investment of Thua Thien Hue City.
In the year 2016, Hoang Phu Company mobilized enough capital sources and continued to carry out construction of the An Hoa Trade Center project. However, the project activities were hampered by the change of direction of The Department of Planning and Investment of Thua Thien Hue City. On July 20, 2016, the Department of Planning and Investment of Thua Thien Hue Province issued a Decision No. 29 / QD-SKHDT terminating operation of An Hoa Trade Center project, disagreed with the Decision No. 29 / QD-SKHDT of Planning and Investment Department of Thua Thien Hue Province, Hoang Phu Company sent a document to Chairman of Thua Thien Hue People's Committee and Director of Department of Planning and Investment plan of Thua Thien Hue Province for recommendation, but it was not resolved.
Due to the delay in completion of the An Hoa Trade Center project, the Director of Department of Planning and Investment of Thua Thien Hue Province issued a Decision No. 29 / QĐ-SKHDT dated July 20, 2016 ended the operation of the An Hoa Trade Center project was harsh for the business.
The Hoang Phu Company proposed to the Prime Minister to instruct Thua Thien Hue Provincial People's Committee to review the case of the Company and allow the company to continue to implement and complete the project. The Hoang Phu Company committed to continue the project with the full capital mobilized as current, the company will complete the construction of An Hoa Trade Center, put the Center into use and operate in second quarter of 2018.
Responded by units: The Thua Thien Hue People’s Committee
Official letter: No 5228/UBND - DN; 6614/UBND - DN; 7143/UBND - DN, dated: 2017-10-02
Responded contents:
The Official letter No 5228/UBND - DN
Assigned the Department of Planning and Investment to chair, and coordinate with concerned units in inspection, scrutinization and settlement of the above recommended contents and reported the process of recommendations of Hoang Phu Limited Company (Le Duan Street, Phu Thuan Ward, Hue City); reported the results of the provincial People's Committee before September 15, 2017.
The Official Letter 6614 / UBND – DN
Assigned the Department of Planning and Investment to chair and coordinate with concerned units in inspection, review and settlement, advising and drafting provincial People's Committees' documents and reporting to the Government’s Office, the Vietnam Chamber of Commerce and Industry (VCCI) related to the process of handling recommendation of the Hoang Phu Co., Ltd (Le Duan Street, Phu Thuan Ward, Hue City); reported the results of the provincial People's Committee before September 25, 2017
The official Letter No 6614/UBND - DN
- 1. The implementation of the An Hoa Trade Center Project
The project of building An Hoa Trade Center of Hoang Phu Co., Ltd was granted by People's Committee of Thua Thien Hue Province on investment certificate No. 31111000193 dated November 24, 2010. Location of project in Phu Thuan Ward, Hue City, Thua Thien Hue Province with an area of 6,257 m2; Scale of investment: 02 floors, 01 basement with floor area of 6,330 m2, total investment of 36 VND billion. The project progress was stated in the investment certificate: Commencement: July 2009, completed and put into operation: December 2011
Since the People's Committee of Thua Thien Hue Province has issued the Investment Certificate, Hoang Phu Limited Company has invested in a number of items such as: basic construction of the main structure. The value reported by investors is about VND 40 billion.
The long-term suspension of implementation of the project violates investment regulations, leading to a number of unfinished construction items that have aroused local people and affected the investment environment.
According to the monitoring and supervision of the authorities, the project has been suspended since 2012, the suspension of the project for a long period of time violates the regulations on investment, resulting in a construction item book unfinished construction causing annoyance for local people, affecting the investment environment in the province.
2. The steering committee of People's Committee of Thua Thien Hue Province and related departments
The People's Committee of Thua Thien Hue Province instructed the Department of Planning and Investment to chair and coordinate with related departments and agencies to speed up the implementation of the project in the Official Letter No. 5441 / UBND-CT dated October 17, 2013 and the Announcement No. 377 / TB-UBND dated December 2, 2013 on the conclusions of the review meeting of land use control by the inter-branch inspection team implementing Directive No. 134 / CT-TTg of the Prime Minister. The Department of Planning and Investment sent many documents to Hoang Phu Co., Ltd, including the following documents:
- The Official Letter No. 2163 / SKHDT-QLGSĐT dated October 25, 2013 on guiding the procedures for modifying the investment certificate and extending the progress of investment project of An Hoa Trade Center;
- The Official Letter No. 11 / SKHDT-QLGSDT dated January 3, 2014 on the implementation of investment project of An Hoa Trade Center;
- The Official Letter No. 60 / SKHDT-DKKD dated January 13, 2014 on reporting progress of investment and commitment to implementation of the project;
- The Official Letter No. 217 / SKHDT-QLGSDT dated January 30, 2015 on the handling violations of investment progress of construction project of An Hoa Trade Center;
- The Official Letter No. 09 / SKHDT-QLGSDT dated January 6, 2016 on liaising with the investment registration office for handling the execution of the An Hoa Trade Center project;
- The Official Letter No. 340 / SKHDT-QLGSĐT on requesting a support of contacting investors for sending to the local authorities for assisting contact investors to deal with issues related to the project. As reflected by the Phu Hoa Ward People's Committee on March 23, 2016, the Ward People's Committee sent a ward official to contact Ms. Nguyen Thi Hoa who was a representative of Hoang Phu Co., Ltd, but the family answered that she was not at home).
The above official letter was sent to Hoang Phu Co., Ltd, but also not received an excellent response of the investor.
- The legal basis for the recovery and settlement of problems of the An Hoa Trade Center project
Pursuant to Article 67 of Decree 108/2006 / ND-CP dated 22 September 2006 detailing and guiding the implementation of a number of articles of the Investment Law 2005 "When an investor temporarily ceases or extends the execution of an investment project, resulting in a change in the committed project execution schedule, at least 15 working days before the date of such temporary cessation or extension, the investor shall notify the investment state management agency of the reason for and the duration of temporary cessation or extension of the project execution.";
Pursuant to Point d, Clause 1 of Article 17 of Decree No. 113/2009 / ND-CP of December 15, 2009, on supervision, evaluation and investment, Investors of projects funded with capital of other sources " shall biannually and annually report to focal agencies conducting investment monitoring and evaluation under their managing agencies and to investment certificate-issuing agencies. and annually to the focal agency conducting the investment supervision and evaluation under the managing agency and the investment certificate-granting body. "
Pursuant to Clause 2, Article 71 of the Law on Investment 2014 " Monthly, quarterly and annually, investors and economic organizations that implement investment projects shall report to local investment registration agencies and statistics offices on the situation of implementation of investment projects, covering disbursed investment capital, business investment results, information on labor, payment to the state budget, investment in research and development, environmental treatment and protection, and specialized indicators by field of operation;"
In fact, during the implementation of the project, the investor did not completely execute by the above-said Decrees, However, the provincial People's Committee instructed the Department of Planning and Investment to extend the project schedule and contact the investor in the above-mentioned documents, but Hoang Phu Co., Ltd did not submit the dossier for extension of the schedule. and adjust the Investment Certificate as well as respond to relevant departments.
The project has been delayed and stopped the construction in the field for a long time; In the process of implementation, the investor did not comply with the report on the status of project implementation in accordance with the regulations, the Department of Planning and Investment can not contact the legal representative of Hoang Phu Co., Ltd.
For the above reasons, the People's Committee of Thua Thien Hue Province had a policy to withdraw the project of An Hoa Trade Center in the Official Letter No. 1929 / UBND-CT dated April 11, 2016 and directed the Department of Planning and Investment to review information of mortgaging the project at the banks in Official Dispatch No.835 / SKHDT-QLGSDT on mortgaging the An Hoa Trade Center project to all banks in Thua Thien Hue Province. Accordingly, the Department of Planning and Investment received an Official Letter No. 10 / NHNo-BC dated April 27, 2016 of the Agriculture and Rural Development Bank of Phu Loc Branch on the mortgage of the project. The Hoang Phu Co., Ltd, the Hoang Long Trading Private Enterprise and AKCT Joint Stock Company have guaranteed for the Hoang Phu Co., Ltd. The mortgaged amount of the project was VND13,401,000,000, plus a debt of VND8,339,000,000, it should be counted until the receipt of the reply from the Bank for Agriculture and Rural Development of Phu Loc Branch, the Hoang Phu Co., Ltd was responsible for a debt of VND 21.8 billion at the branch.
On April 15, 2016, Hoang Phu Limited Company had the the Official Letter No. 1/2016 / TTrGH to report to the People's Committee of Thua Thien Hue Province to remove difficulties of building An Hoa Trade Center and People's Committee of Thua Thien Hue issued an Official Document No 2684 / UBND-XTĐT dated May 16, 2016 assigned Department of Planning and Investment to chair and coordinate with concerned units for advice and handling.
On June 2, 2016, the Department of Planning and Investment held a meeting to resolve and handle all issues related to the project in accordance with the law, specifically: investment certificate, the project has been delayed for more than four years, which is a violation of the provisions of the Law on Investment and the Law on Land. Therefore, the An Hoa Trade Center project is eligible for withdrawal. However, to support and facilitate inter-sectoral investors to agree on the contents proposed Hoang Phu Co., Ltd. to implement the following contents:
- Report on the progress of the project to Ppeople’s Committee of Thua Thien Hue Province before June 10, 2016.
- If being allowed to adjust the progress, within 15 days, the Hoang Phu Limited Company must carry out deposit procedures to ensure the investment project in accordance with regulations.
However, by the deadline mentioned above, Hoang Phu Limited Company did not organize the implementation of the required contents at the meeting. Therefore, on July 20, 2017, the Department of Planning and Investment issued Decision No. 29 / QD-SKHDT on termination of operation of An Hoa Trade Center Project of Hoang Phu Co., Ltd, the reason is Hoang Phu Co., Ltd in violation of Point g, Clause 1, Article 48 of the Law on Investment 2014 " Twelve months have passed but the investor still fails or is unable to implement the project according to the schedule registered with the investment registration agency and is not eligible for extension of the investment project implementation period as prescribed in Article 46 of this Law”. At the same time, Hoang Phu Co., Ltd is responsible for completion of the procedures for liquidation of the investment project in accordance with the provisions of law and self-liquidation of assets in accordance with regulations.
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