Scores of HCM City-based property projects are stuck due
to unreasonable compensation and inconsistent legal documents.
North Rach Chiec residential
area project in HCM City's District 9 was approved by the prime minister in
2001. Developer Real Estate Joint Stock Company 10 (Res 10 JSC) was later
handed over 78.5 hectares for technical infrastructure construction. The
project affected 438 households in Phuoc Binh and Phuoc Long A wards which were
subject for relocation.
According to a Phuoc Binh
ward's inspection board report, scores of households in affected areas refused
to hand over their land due to low compensation, stalling project
implementation for couples of years.
Besides, after getting the land
developer Res 10 transferred investment rights to eight other firms who are
secondary investors to source investment capital.
One secondary investor Truong
Van Quyen, director of Trade, Construction and Transport Services Enterprise
belonging to Auto Transport Services JSC 6, said: "The city authorities
just honoured the land use right in Phuoc Long A area to developer Res 10 JSC
to empower it to split land areas to local households while it is still a long
way for our secondary investors to get the same right due to incomplete site
clearance and infrastructure construction."
Res 10's actions were counter
to prime minister's guidance since the prime minister demanded "After
finalising North Rach Chiec residential area's technical infrastructure
construction, Res 10 must hand over entire land to city authorities for the
city to lease land to secondary investors pursuant to the Land Law
regulations."
A plot-based housing project in
District 9's Phu Huu ward is in the same position.
In light of city authorities'
commitment on mini-housing developments in 2001, Pham Trong Thuan and 10 other
households in Phu Huu ward pooled capital to carry out a plot-based housing
project over 4.5ha. In August 2001, the project's detailed planning was
ratified by HCM City Chief Architect Office.
After finalising compensation
for 32,079 square metre fields and 12,885sqm of public land Thuan had engaged
in site clearance and completed infrastructure building in 2004.
However in late 2005, District
9 People's Committee issued a document requiring a land appraisal of a land
plot in the project site. Later in 2007, it enacted a decision taking back all
land use right certificates already given to Thuan and other stakeholders
without legitimate explanations.
The local government did not take
any move to support investors since then. The project site is now laid idle.
Technical infrastructure worth several million dollars faces serious quality
deterioration.
"Lengthy settlement eroded
our shareholder confidence. Local government needed to take back absurd
documents and support us in project completion," said Thuan.
VIR
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