Tasco Joint Stock Company (HNX: HUT) was assigned by the Hanoi People’s Committee to execute the project of Le Duc Tho street to Xuan Phuong new urban area in the form of BT contract.

This project has recently been exposed by the Government Inspectorate for a series of mistakes related to the selection of contractors, the establishment and approval of total investment capital …

Project of Le Duc Tho street to Tropico's Xuan Phuong new urban area

Project of Le Duc Tho street to Tropico’s Xuan Phuong new urban area

8 years of construction work 3.5km route

On February 4, 2008, the People’s Committee of Hanoi issued Decision No. 603 / QD-UBND approving the investment project to build a road from Le Duc Tho street to Xuan Phuong new urban area in the form of a contract Build – Transfer (BT). Tasco Joint Stock Company is an investor assigned to set up the investment project to build this road.

The project starts at the intersection with Le Duc Tho Street and the end point is at intersection with 70 road, passing through My Dinh 1 – 2 urban areas, Xuan Phuong Tasco new urban area in My Dinh ward, Phuong Canh Xuan Phuong, Nam Tu Liem district.

Total length of the route is 3.51km, cross section 50m including 8 lanes. Design speed is 60km / h. There are two bridges on the route: Nhue river crossing 71m long and 365m long crossing bridge.

Total investment of the project is VND1,543 billion. Of which: construction investment VND1.110 billion; ground clearance of VND193 billion; project management, consultancy and other expenses VND166 billion, reserve costs VND73.5 billion.

The 3.5km-long Tasco route was changed to 70ha

The 3.5km-long Tasco route was changed to 70ha

The project was started on February 15, 2009 – almost a year after the approval of Hanoi City. Notably, during the construction of the project, Tasco has faced numerous violations in calculating the application of norms, unit prices, cost ratios, volume of many items (resulting in total investment of project to VND437 billion) in 2012. The project has been stretched until April 2017 to complete.

Project implementation of Le Duc Tho – Xuan Phuong new urban area, Tasco was changed by the People’s Committee of Hanoi for 70ha of land including 30 ha of land at the project Unit 1 Xuan Phuong, 3,000sqm land at 48 Tran Duy Hung (Cau Giay district) and 38ha of land in Xuan Phuong ward (now Xuan Phuong Foresa Villa project).

Erroneous at Le Duc Tho – Xuan Phuong new urban area

The conclusion of the Government Inspectorate states that for the Le Duc Tho – Xuan Phuong new urban area project, the Hanoi People’s Committee did not follow the procedure of selecting investors; The assessment of the investor’s capacity is inaccurate and inadequate; Option to sign contracts with investors does not ensure the required capacity.

Specifically, the project when submitted to the policy of selecting investors by contractor designation has given reasons urgent, necessary. However, the People’s Committee of Hanoi does not have documents to prove, clarify the actual situation and accuracy of the urgent, necessary when appointing investors to implement this project.

Tasco is also considered as a limited investor in its financial capacity and does not have the required capacity, leading to delays in the project. Tasco completed the project before April 30, 2007, including the agreement with the Department of Planning and Investment for Tasco to work on the area of ​​49.1ha in the area of ​​Xuan Phuong – Unit in 1).

In addition, the conclusion of the Government Inspectorate also said that the work of preparing, evaluating and approving the total investment capital of the project is not accurate due to the application of norms, unit prices and incorrect calculation of volume, increasing the contract value BT by VND20 billion.

In addition, Tasco is also considered a violation in the joint venture investment to divide the land in the counterpart project without the approval of Hanoi People’s Committee; The wrong calculation increases the cost of investment in technical infrastructure construction due to the incorrect investment capital, in determining the land use levy for counterpart project is VND11.2 billion.

Many mistakes in the project are indicated by the Government Inspectorate

Many mistakes in the project are indicated by the Government Inspectorate

The Government Inspectorate has asked Hanoi People’s Committee to direct Nam Tu Liem District and investors reduce the value of total investment of VND19.5 billion.

Requesting the payment of BT contracts, the investor must add the value of land use fee to pay into the state budget the amount of VND 11.2 billion due to the incorrect rate of investment capital.

The Government Inspectorate also proposed that Hanoi City adjust the allocation decisions of Xuan Phuong Urban Area to Tasco Joint Stock Company in line with the 1/500 detailed plan as amended in Decision 1636 / QD-UBND dated March 25, 2014 and the method of land allocation and lease in Decision No. 4324 / QD-UBND dated Augist 28, 2015 of the People’s Committee of the city. Hanoi; directed the functional branches of Hanoi, Nam Tu Liem district to complete the project clearance.

Based on that, the land use fee and land rent will be determined and the land rent will be increased by VND 37.6 billion due to the lack of land rent for the public area and the parking lot of the project. This is the basis for Tasco’s conclusion of the contract, which serves as the basis for Tasco to fulfill its obligations to the state.

How did Tasco invest in real estate in Xuan Phuong?

Tasco has implemented the Xuan Phuong Foresa Villa project (with the frontage of 70- opposite Xuan Phuong Viglacera project) with Xuan Loc district People’s Committee delivering tens of hectares of land in Xuan Phuong.

As noted by VietnamFinance, this project was built very loudly last year and is now basically completed as: low rise buildings, finished villas (painted exterior) and residents began to return in; internal roads almost complete; Only a few are still not finished.

Entrance to Xuan Phuong Foresa Villa on 70th Street

Xuan Phuong Foresa Villa is adjacent to the housing project of cadres of the National Assembly Deputy Minister and equivalent

Adjacent to Xuan Phuong project Foresa Villa is Xuan Phuong Residence project – also owned by Tasco. This project has completed 2 E, F and some low rise buildings. Three apartment buildings are still being built rough.

You are reading the article Tasco and mistakes at the project Le Duc Tho – Kien Xuan Phuong in the Real Estate category at https://realestatevietnam.com.vn/.Any information sharing, feedback please email to contact.vietnamrealestate@gmail.com, Hotline (+84) 898 898 688 (24/7).

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