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|After eight years of delays, GS E&C is set to resume the development of its $189 million Metrocity project|
The committee has requested the People’s Committee of Nha Be, where the project for residential removal is located, to push up the progress in order to finish land clearance and compensation by May 2018. The Phuoc Kien-Nhon Duc construction project can then begin.
The same deadline was also given to the project to remove its power system from the site. Accordingly, all necessary procurements must be finished, and the cleared land must be transferred to the developer by the end of May.
With all of the above efforts, Ho Chi Minh City authorities hope to start the Metrocity project in the third quarter of this year, after more than eight years of delays.
In previous talks with VIR, an official from GS Engineering and Construction (GS E&C), who asked not to be named, confirmed that the company was finishing procedures to resume the project.
Located on a 350 hectare site in Ho Chi Minh City, the project will receive $189 million in investment capital from GS E&C.
Since receiving its investment certificate in 2007, GS Metrocity has faced a number of delays due to difficulties in land clearance and compensation procedures, as well as a disagreement with local authorities on tax obligations. The investor is also co-ordinating with local authorities to remove a high-voltage electric system that runs through the project site.
GS E&C had originally planned to complete the basic infrastructure systems for the entire project within two years, by 2010, and called on other sub-investors to develop smaller projects. However, after officially commencing work more than eight years ago, the project remained at the land clearance stage.
Located about 10 kilometres south of Ho Chi Minh City’s downtown area, GS Metrocity will consist of a financial centre, shopping malls, and high-end office and apartment blocks. Key parts of the complex are the Linear urban area, the Centre Peninsula, Gateway City, and Park City. Construction is set to finish within the next 10 to 15 years.
GS E&C is a part of GS Group, one of Korea’s top 10 conglomerates, which has a strong presence in Vietnam via the group’s investments in the retail, recreation, and construction sectors.
Apart from GS Metrocity, in 2007, GS E&C also obtained an investment certificate to build a 36-hole golf course near Cu Chi, another one of Ho Chi Minh City’s outlying districts. However, this project was taken over by C.T Group in 2012.
The South Korean construction group made another deal with the Ho Chi Minh City Department of Planning and Investment to build a motorway to connect Tan Son Nhat International Airport with the outer beltway in Thu Duc district, under the build-transfer (BT) format.
Currently, GS Retail Co., a retail arm of GS Group, is building a $30 million trade complex on a 7ha site in My Phuoc III Industrial Park, located in the southern province of Binh Duong.