Overview of the slow-progressing Cua Lo Beach Golf project

On June 20, 2022, the Department of Construction issued Document No. 2134/SXD-BC reporting the inspection results of the Golf Course, Hotel and Villa Complex Project in Cua Lo town to the Provincial People's Committee.

Cua Lo Sea Golf Joint Stock Company was granted a business registration certificate by the Department of Planning and Investment in 2006; in April 2007, the Provincial People's Committee granted an investment certificate for the Golf Course, Hotel and Villa Complex Project in Nghi Huong Ward, Cua Lo Town. The land area for the project is 132.478 hectares, including 2 areas of Golf Course, Hotel and Villa Complex; Warehouse area, auxiliary works, nursery and housing for staff and workers, with a total investment capital of 1,527.85 billion VND. The investment certificate has been adjusted 4 times to date.

The fourth change of the investment certificate (May 31, 2014), the project scale includes 1 18-hole golf course, 1 5-star hotel (420 rooms), 1 3-star hotel (300 rooms); 284 villas; sports and service area; Nguyen Sinh Cung residential area. The project implementation progress is 8 years, from April 27, 2007 to before April 28, 2015.

Regarding the detailed construction planning at a scale of 1/500 of the Golf Course, Hotel and Villa Complex Project in Cua Lo town, approved by the Provincial People's Committee in Decision No. 467/QD-UBND dated February 2, 2007; by October 2007, the planning was adjusted. At this time, the project includes 2 areas: Golf Course, Hotel and Villa Complex (area of ​​114.14 ha); Warehouse area, auxiliary works, nursery and housing for staff and workers (area of ​​18.34 ha).

On April 27, 2010, in Decision No. 1698/QD-UBND.CN, the detailed construction plan of the residential area on Nguyen Sinh Cung Street was approved by the Provincial People's Committee with a total area of ​​172,500 m², replacing the Warehouse Area, auxiliary works, nursery and housing for staff and workers. Up to now, Nguyen Sinh Cung Residential Area has had its planning adjusted twice in Decision No. 3166/QD-UBND dated July 24, 2018 and Decision No. 3172/QD-UBND dated August 27, 2021.

For the Golf Course, Hotel and Villa Complex, by January 20, 2021, the Provincial People's Committee approved the planning adjustment in Decision No. 168/QD-UBND; the remaining area is 1,135,515 m². The reason for the adjustment is: "Adjusting the planning to match the Vinh - Cua Lo Boulevard Zoning Plan and the area on both sides of Vinh - Cua Lo Boulevard". In this planning adjustment, the Golf Course, Hotel, and Villa Complex no longer has 2 5-star and 3-star hotels. Instead, it is planned to build a 40-storey hotel and trade center; the number of land lots for building resort villas has increased from 284 lots to 382 lots with a total land area of ​​17.1 hectares.

In Document No. 2134/SXD-BC, the Department of Construction has a separate and detailed report on Cua Lo Sea Golf Joint Stock Company's investment in the construction of the Golf Course Complex, Hotel, Villas and Nguyen Sinh Cung Residential Area.

For the Golf Course, Hotel, Villa Complex (based on the latest planning adjustment in Decision No. 168/QD-UBND dated January 20, 2021), 3,900 m/4,800 m of roads, electricity, drainage ditches, and tree planting have been built; 900 m/4,800 m of drainage ditches, curbs, and curbs have been completed; Operator House 1; Operator House 2; Golf course; green land, traffic have been implemented; 16 houses (16 plots of land)/382 plots of resort villas have been built. In the Amusement, Resort, and Beach Area, 1 project with an area of ​​506 m has been built.²but not in accordance with the planning. The investor has not built 366 houses/382 resort villa plots, the Square, the Commercial Center. The entertainment, resort, and beach areas have not been built according to the approved planning. There are still 900m/4800m of traffic roads that have not been paved or paved with sidewalks.

In the residential area of ​​Nguyen Sinh Cung Street (based on the Decision approving the planning adjustment No. 3166/QD-UBND dated July 24, 2018), 3,348.54m/3,348.54m of traffic roads, drainage ditches, electricity and water supply systems have been built; 29 houses (29 plots of land)/478 residential plots have been built. 449 houses/478 residential plots have not been built, Sports and physical training area, Kindergarten, Cultural house, Commercial and service area, Apartment buildings for low-income people. There are 3,348.54m/3,348.54m of traffic roads without sidewalks.

The current land area of ​​the entire project is 1,308,017.51m2², of which, the constructed area is 860,644.96m2²reached 65.8%, unbuilt area 34.2%. The invested capital reached about 30-40% of the total investment (due to not yet built large items such as: Resort villas, houses; Square area; Entertainment, resort, beach area; Commercial center area; Sports and recreation area; Kindergarten, Cultural house; Commercial service area; Apartment for low-income people).

Regarding the implementation of financial obligations, according to Document No. 2604/CT-HKDTK of the Tax Department, as of April 25, 2022, the investor owes land use fees of VND 6,972,614,300, late payment of land use fees of VND 961,685,164; land rent of VND 6,179,791,068, late payment of land rent of VND 59,734,385. Meanwhile, the investor has mobilized capital with an amount of VND 853 billion. Specifically, at the Golf Course, Hotel, Villa Complex with 382 plots of land, the investor has signed 142 contracts, mobilizing an amount of VND 422 billion. At Nguyen Sinh Cung Residential Area, there are 478 land lots, the investor has signed 466 contracts with the amount of 431 billion VND (of which 349 contracts are for transferring land use rights; 117 contracts are for buying and selling houses and contributing capital).

According to the 4th adjusted Investment Certificate, the project implementation progress must be completed before April 28, 2015. By the time of inspection (April 2022 - PV), the project was 6 years and 7 months behind schedule. The objective reason was that the Provincial People's Committee approved the adjustment of the zoning plan of Vinh-Cua Lo Avenue and the area on both sides of the Avenue, which affected part of the project; in recent years, the Covid-19 epidemic situation has also affected part of the progress.

Regarding subjective reasons, the fact that the investor has not fully invested in construction of project items according to the approved planning is due to insufficient financial capacity, or because the investor intentionally does not implement (the inspection team does not have the authority to check the financial capacity of the investor, so it is not possible to conclude the specific cause). In addition, households and individuals who have been transferred the right to build their own houses have not yet built houses according to regulations; although state management agencies have inspected, the urging and handling after inspection is not drastic and thorough, which also partly affects the project progress.

According to the Department of Construction, the main responsibility for the project's slow progress lies with the investor and the households and individuals who have been transferred the right to build houses. In addition, the responsibility of state management agencies in urging and handling after inspection is not drastic and thorough.

In 2017, the Provincial People's Committee issued Decision No. 382/QD-UBND and Decision No. 2896/QD-UBND on allowing the transfer of rights to households and individuals to build their own houses in the Nguyen Sinh Cung Residential Area. In particular, the Provincial People's Committee stipulates that before transferring rights to people to build their own houses, investors must complete the construction of green works and infrastructure items including service works, social infrastructure and technical infrastructure, synchronously connected with the general system of the area.

At the time of inspection, the investor had not yet built service works and social infrastructure, which did not meet the conditions prescribed in Decision No. 382/QD-UBND and Decision No. 2896/QD-UBND of the Provincial People's Committee, but had transferred the right to households and individuals to build their own houses. This was a major cause of the project's slow progress. This content was also pointed out by the Department of Natural Resources and Environment in Inspection Conclusion No. 256/KL-TTr dated October 26, 2018, but up to now, the investor has not yet corrected it.

Therefore, the Department of Construction recommends that the Provincial People's Committee consider revoking Decision No. 382/QD-UBND and Decision No. 2896/QD-UBND. Only when Cua Lo Beach Golf Joint Stock Company fully complies with the conditions will it be considered to allow the continued transfer of rights to households and individuals to build their own houses according to regulations.