What does Dai Quang Minh say about the ‘golden roads’ in Thu Thiem?

Dai Quang Minh Real Estate Investment Joint Stock Company said that the actual investment cost of the four roads in Thu Thiem Urban Area (District 2, HCM City) was just over VND 8,000 billion, not VND 12,000 billion as people thought.

“Golden roads” in Thu Thiem: more than VND 1,000 billion / km

In 2013, the City People’s Committee Ho Chi Minh City signed with Dai Quang Minh Real Estate Investment Joint Stock Company BT contract (build – transfer) 4 main roads in Thu Thiem New Urban Area), including: R1 (Circular Boulevard), R2 R3 (Riverside riverside), R4 (delta roads, delta roads, riverside roads – residential areas).

The total length of the four roads is 11.9 km, the width is 11.6 m to 55 m. The project consists of 10 bridges with a total length of about 1.8 km. The maximum time to complete this project is 36 months from the start date.

Total investment of the four roads is more than VND12,000 billion. Thus, on average, each km of roads in Thu Thiem new urban area has invested more than VND 1,000 billion!

According to traffic experts, this is too high prices, because even making 4-lane highway (20m horizontal) the investment level does not exceed VND 200 billion / km.

To build 4 roads, Dai Quang Minh Company was the City People’s Committee. Change “for 79ha land in Thu Thiem Ward and An Loi Dong Ward (District 2).

4 roads in Thu Thiem New Urban Area (District 2, HCMC)

Thus, calculated, Dai Quang Minh has “bought” the Thu Thiem land for only VND15 million /sqm. Meanwhile, land prices in the Thu Thiem urban area of ​​Dai Quang Minh are currently ranging between VND200 and 350 million per square meter.

Public opinion raises questions whether or not the hidden in the contract signing construction of these four roads.

Dai Quang Minh: Only 36 / 79ha of land is residential and commercial services

According to Nguyen Hoang Tue, deputy general director of Dai Quang Minh Company, the investment in construction of roads in Thu Thiem new urban area was initially the City People’s Committee. HCM assigned to Vietnam Infrastructure Development and Financial Investment Corporation (VIDIFI).

Initially, the project had only three roads, then the People’s Committee. Ho Chi Minh City submits to the Prime Minister for the additional supply of the lofty supply route, so the project has four routes (as mentioned above).

Mr. Tue said that in 2010, HCM assigned the project investment for VIDIF. But over 2 years of VIDIFI implementation can not meet should have proposed cooperation with Dai Quang Minh.

On December 7, 2012, HCM has agreed to VIDIFI co-investment with Dai Quang Minh Company. However, on May 27, 2013, VIDIFI has sent a letter to the People’s Committee of Ho Chi Minh City to withdraw from the joint venture project and the City People’s Committee. HCM approves the above proposal.

Thus, by mid 2013, Dai Quang Minh Company is the sole investor of the 4-way project in Thu Thiem.

Answering the investment 4 roads are too high (more than VND1,000 billion / km), Mr. Tue confirmed the actual investment costs of the four roads only more than VND8,000 billion. So far, about VND 6,000 billion has been disbursed to construction units.

“We did not receive VND3,900 billion of slippage expenses and interest expenses of VND12,000 billion. The company has paid to the budget of the People’s Committee. The amount of money is VND2,400 billion, “Tue said.

The deputy general director of Dai Quang Minh Company also emphasized that among the 79 hectares of land that was “changed”, only 36 hectares were residential land and service trade, the rest was land for public works and transportation.

~~>>Update on new information on the real estate news in Vietnam here: Vietnam real estate news

Thus, it is not actually Dai Quang Minh is buying land at about VND15 million / sqm as understood by the average actual cost of land is about VND40 million/ sqm (excluding the cost of investment infrastructure interconnection in residential areas and financial expenses).

Mr. Tue also said that the construction of roads on the right at the time by the construction design drawing is also assessed and approved by the state agencies.

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