The city inspectorate recently issued its findings on compliance with policies and laws at the Hoa Trung Beach Tourist Area project, also known as the Hon Ngoc A Chau Coastal Tourist Area. Hon Ngoc A Chau Joint Stock Company is the investor for this project, which spans 170,000 square meters in Ngu Hanh Son ward.
The project's objective is to develop and operate an international-standard coastal tourist area. It includes a hotel with about 200 rooms and various amenities, about 95 villas for sale and lease, and approximately 150 high-end apartments for sale and lease. The project also aims to offer hotel services, international and domestic travel services, and real estate management services.
Land allocated without auction, improper licensing authority
According to the inspection's conclusion, the Da Nang City People's Committee assigned the Investment Promotion Center to advise on issuing the initial investment certificate in 2007. This was deemed beyond the authority stipulated in Decree 108/2006. At that time, the project's total investment was 1,376 billion VND, while the investor's charter capital was only 100 billion VND, failing to meet the minimum 15% of total investment required for real estate businesses.
In 2008, the city people's committee issued a decision to allocate and lease cleared land to the enterprise without holding an auction for land use rights. This action violated Article 58 of the 2003 Land Law. Additionally, the managing agency failed to assess the land use needs or evaluate the lessee's compliance with land laws.
Furthermore, the land collection price and land lease rates issued in 2008 were based on a principal agreement signed in 2006. There was no advice from the Department of Finance, nor was the Land Price Appraisal Council consulted. Moreover, the registration of 19,500 square meters of land as urban residential land in 2016, without a prior decision permitting land use conversion, also contravened the 2013 Land Law.
Recovered land still subject to lease payments
The inspectorate determined that the project's progress was delayed by objective reasons and protracted administrative obstacles, totaling about 96 months. Key issues stemmed from multiple planning adjustments, a lack of supplementary population targets, and delayed adjustments to the investment policy.
By June 2021, the city people's committee decided to reclaim over 5 hectares of project land for a public park and beach. However, the Project Management Board and the Ngu Hanh Son Ward People's Committee did not complete the physical handover of the land, and compensation counting remained unfinished.
Due to the specialized agency's delay in transferring cadastral information, the investor, despite not using the land, was still required to pay annual land lease fees for the over 5-hectare area that had been reclaimed from 2021 until the end of 2025.
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The Hon Ngoc A Chau project has been delayed for many years. Photo: Nguyen Dong |
The Hon Ngoc A Chau project has been delayed for many years. Photo: Nguyen Dong
The Da Nang City Inspectorate concluded that responsibility for these errors lies with the city people's committee, relevant departments through various periods, the Project Management Board, local authorities, and the investor. The inspectorate recommended disciplinary review and action against the involved collectives and individuals, and reporting on the handling of officials under the City Party Committee's management.
Acknowledging that the violations occurred in the past, the investor has complied with payments to the state budget, and the project aligns with the general plan. The city inspectorate proposed applying special mechanisms and policies from the National Assembly and the Politburo to resolve existing issues.
Specifically, the Department of Natural Resources and Environment is tasked with coordinating with other units to review records and advise on adjusting land allocation decisions and lease contracts. These units are responsible for determining the actual period of non-use of the land to adjust, refund, or offset overpaid land lease fees for the enterprise. This agency also needs to promptly finalize the determination of financial obligations to advise on issuing land price decisions.
The Department of Construction is responsible for updating population targets in the zoning plan and appraising the 1/500 detailed plan adjustments. The Department of Finance should promptly complete the appraisal of the adjusted investment policy. After these procedures are resolved, the investor must focus resources on accelerating construction progress in accordance with the approved plan.
Nguyen Dong
