The
National Oil and Gas Group (PetroVietnam) has divested from the construction of
Vietnam’s tallest skyscraper, PVN Tower, in Hanoi, said its top leader at a
recent press briefing.
The national petroleum conglomerate has
reported to the government about the divestment, stressing that it is following
the government’s directive in withdrawing state capitals from non-core sectors,
said PetroVietnam chairman Phung Dinh Thuc.
The project, located on a 6.5 hectare site in
Tu Liem District, would be handed over to a new investor under the management
of Hanoi government, he added, without going into detail.
A source from PetroVietnam’s construction arm,
PetroVietnam Construction Joint Stock Corp (PVC), told Vnexpress that it is the
owner of the $600 million project, of which its contribution accounts for 15-20
per cent of PVN Tower’s total investment.
According to the source, PVC will mobilize
capital from the private sector.
The tower project has been projected to start
this year, but it may be delayed due to current situation of the real estate
market which has already been suffering a downturn.
PVC will recoup the investment capital 15-20
years after the completion of the building.
The project was shortened to 79 floors from
120 floors as seen in the original blueprint in March 2011 after the National
Assembly did not agree to let PVN use its VND3.5 trillion profits in 2010 as
added working capital for the following year. Instead, the sum was to be
transferred to the state budget.
Some legislators showed their concerns over
the fact that PetroVietnam had overstretched its investments in non-core
sectors, as the PVN Tower is an example.
The building, consisting of A-grade offices, a
6-star hotel, commercial complex and high-grade apartment, was designed to
withstand earthquake measured up to the 6th level on the Richter’s scale.
It has three designs with awards worth
$50,000, $30,000 and $20,000 for top 3 designers including the US-based Pelli
Clarke Pelli Architects, the Australian Fender Katsalidis Architects, and the
Spain-based PCIC- Codinachs- Samoo joint venture.
It will be the tallest building once finished
- around 500 meters tall, followed by the 345-meter Keangnam Landmark tower and
362-meter VietinBank Tower.
PetroVietnam remains No.1 in the top 10
Vietnamese largest companies in the VNR500 - the 500 Vietnamese largest
enterprises in 2011 with an estimated revenue of VND672 trillion, accounting
for over 50 per cent compared to VND1.16 trillion worth of total revenues of
state-owned groups in 2011.
It will have to focus on its 5 core
businesses, including exploration and exploitation of oil and gas,
petrochemical, industrial gas, electrical and petroleum engineering services,
according to its restructure scheme that has been submitted to the government.
So as to achieve the goal, it will have to
divest from all non-core sectors by 2015.
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