Authorities have given construction firm Dong Duong Group a second permission to build an underground parking lot at the Tao Dan Park.

Dong Duong received its first permission in 2010 to build a 5,300-square meter parking lot with seven underground levels and three upper levels that would accommodate 878 cars and 400 motorbikes.

However, as the project failed to start for a long time, the city’s Department of Natural Resources and Environment last year proposed that the city retrieves the land allocated for the project.

In this context, the reason for authorities granting a second permission is not clear.

In the latest permission, HCMC demands that Dong Duong starts construction by next June at the latest and finish it by the end of 2022, failing which it would retrieve the land.

The city had planned four underground parking spaces in the downtown Districts 1 and 3 that would accommodate 6,300 cars and 4,000 motorbikes in total. None of these have been implemented.

Earlier this month, the city cancelled an underground parking project in Le Van Tam Park, District 1 because many important requirements were not finalized, including applying for construction permits and evaluating technical designs.

Parking space in the downtown area of the 13-million strong city only meets around 7 percent of demand, urban planning experts said.