Ha Noi terminates doomed $40m hotel-park project

HA NOI (Homeid) — The municipal People's Committee has ordered the SAS Hanoi Royal Hotel project at 295 Le Duan Street, located within the area of Thong Nhat Park, to be terminated following a Government decision.

Citizens were worried that the project could have negative impacts

on one of the capital's major outdoor leisure areas.— File Photo

 

The project is also known as Novotel Hanoi on the park and has an expected investment capital of US$40 million.

Construction began in 2008 by the SAS Hanoi Royal Hotel Company as joint venture between Hanoitourist and Singapore-based SIH Investment Ltd, but public concerns about its location inside the park pushed authorities to reconsider afterwards.

Citizens were worried that the project could have negative impacts on one of the capital's major outdoor leisure areas.

The committee informed the investors and local finance, architecture, planning and investment, and natural resources and environment agencies about the termination on Wednesday.

Instead, another area of land would be allocated along Pham Hung road in Cau Giay District for construction. The hotel will be built entirely with foreign capital from SIH Investment, as Hanoitourist has ceased its investment.

SIH Investment will be offered a discount of over $13.3 million for land use charges at the new site, as it has already invested a similar amount in the prior location.

The committee said the Singaporean company would have to be responsible for all financial duties left by the joint venture, which was to dissolve, and urged it to remain committed to project progress.

The land in Le Duan Street would be revoked for underground car-parks, plantation and services, said the committee. — VNS

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