13:10 | 08/07/2015 Economy
The People's Committee of the south-central Khanh Hoa Province has decided to revoke the licence of US$1.19-billion Phoenix Beach project in the coastal city of Nha Trang.
Graphic image of Phoenix beach project. Authorities of Khanh Hoa province have decided to revoke the project licence for failling to meet financial obligation. — Photo laodong.com.vn
The authorities are withdrawing the investment licence of India's Dewan International Viet Nam Company – the investor of the project – for failing to contribute capital to the project, although the deadlines were extended twice for the company to April 9 and June 30 this year.
The project, which received its investment licence last August, was to cover more than 60ha along Tran Phu Beach in Nha Trang. It was projected to comprise a 65-storey complex and a 45-storey five-star hotel.
Its construction was scheduled to start last September and be completed by September 2022.
According to the investment licence, the developer was to contribute 20 per cent of the total charter capital worth VND420 billion ($19.26) before November 20, 2014, and the remaining 80 per cent by August 2017.
The decision to revoke the licence was issued on July 2, following a proposal by the provincial Department of Planning and Investment after the company failed to fulfill its financial obligation.
The local people have been protesting against the project ever since it was approved. Many scientists, technicians and local people said the project could destroy the landscape of Nha Trang Bay as well as damage the coast's shape. The project was considered to be a "concrete wall" blocking the eastern side of Tran Phu beach.
The provincial authorities had scaled the project down by 14ha to 60ha last May, after media reported opposition from residents, architects and former officials.
Dewan Viet Nam has a charter capital of VND2.1 trillion ($96.6 million).
India's Dewan Group was established in 1968. It focuses on development, construction, industry and finance. Its international offices are located in Australia, Dubai, Russia and Viet Nam./.