Pressure put on slack developers
Construction projects that have stopped work may be adjusted or cancelled, according to a new order released recently by the Hanoi People’s Committee.
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Chung asked the city’s Department of Natural Resources and Environment to coordinate with other departments, districts and towns to complete land-use planning by 2020.
He said an assessment on halted construction projects would be made to the city People’s Committee by the end of April. He called for administrative procedures on land-related transactions to be simplified and transparent to remove obstructions.
Chung also asked the departments of finance, natural resources and construction to tighten price appraisals and strictly conduct land and house auctions to prevent budget deficits and corruption.
The order aims to address long halted construction projects. Several investors have refused to continue building and tried to readjust the use of the space for such things as car parks.
Thinh Liet Urban Area in Hoang Mai district, for example, had its 35ha area acquired by Hanoi People’s Committee in 2004, which then assigned the space to Licogi Company as the main investor.
However, after 14 years, the project is still stalemated. Meanwhile, the area is being hired to set up car parks, facilities and concrete mixing plants.
The similar phenomenon even happens to hospital construction projects. In 2008, Hanoi People’s Committee decided to acquire nearly 36,000sq.m area in Yen So commune, Hoang Mai District and assigned Quang Trung General Hospital Joint Stock Company to build Quang Trung General Hospital in 18 months.
Ten years have passed but the project has remained on paper. “Land belonging to nearly 300 families were acquired for the project. Although the local authorities have supported the investors in land acquisition, the investors have not allocated enough capital to implement it.
"The Hoang Mai District People’s Committee and the Department of Natural Resources and Environment have asked the city People’s Committee to withdraw the project,” said a representative of Yen So Commune People’s Committee.
Nguyen Huu Nghia, deputy director of the department, said that it was stipulated that within 12 months of receiving acquired land, investors had to start construction project. If the project was 24 months behind schedule, the department would ask the city People’s Committee to withdraw it.
