On February 16, VnEconomy’s source revealed that the Hai Phong People’s Committee issued a document not approving the adjustment of the planning for two plots of land, CC6 and CH2, at the Quan Mau intersection, allowing for an increase in height from 9 floors to 21 floors as proposed by the investor, PG Investment and Construction Joint Stock Company (PG Company).
WINNING TWO ADJACENT AUCTION PROJECTS
PG Company is the investor of the Rong Bien park project, covering an area of 1.7 hectares in the central area of Hai Phong city. At the end of 2017, Hai Phong People’s Committee confiscated the land of the Rong Bien park project to serve the renovation of parks in the city center. PG Company proposed that Hai Phong People’s Committee allocate 4 plots of land at the new location, including 2 plots of land CC6 and CH2 adjacent to each other at the Quan Mau intersection (Dong Hai Ward, Le Chan District) and 2 plots of land TM2, TM7 at the new urban area Bac song Cam, Thuy Nguyen District).
In 2019, PG Company won the auction for 2 plots of land, CC6 and CH2. Hai Phong People’s Committee issued a decision approving the auction results and recognizing PG Company as the investor of the 2 projects: a mixed-use commercial and residential complex at the CC6 plot and a mixed-use apartment building at the CH2 plot. Both plots of land have a maximum height limit of 9 floors.
Specifically, the CC6 plot has an area of 1,770 sqm, of which over 942 sqm is planned for residential purposes, over 827 sqm is leased for a one-time payment for a 50-year lease (including over 473 sqm for commercial and service purposes and 354 sqm for greenery), with an auction value of over 55.1 billion VND. The CH2 plot, located at the Quan Mau intersection project, has an area of over 2,786 sqm planned for residential purposes, with a total auction value of over 90.8 billion VND.
By the end of 2021, PG Company had paid over 146 billion VND for land use fees and land rent according to the notification of the competent authority. The payment of land use fees after winning the auction was determined to be delayed compared to the progress. However, PG Company argued that due to the COVID-19 pandemic in the years 2020-2021, it was exempted from late payment fees for land use fees and land rent.
MULTIPLE REQUESTS FOR ADJUSTING HEIGHT
In March 2020, after winning the auction, PG Company submitted a document requesting Hai Phong People’s Committee to adjust the planning to merge 2 plots of land into 1 in order to develop a 27-story project. In March 2023, PG Company submitted a second document requesting to adjust the planning for 2 plots of land to build 2 commercial and service projects, office buildings, hotels, apartments for sale and rent, with 27 floors and 2 basement levels (for parking).
In August 2023, for the third time, PG Company requested further adjustment of the planning to allow the construction of a 21-story project, with a total floor area of over 43,000 sqm (reduced compared to the proposed 27-story plan by over 6,900 sqm), including a total of 342 apartments (reduced by 57 apartments compared to the proposed 27-story plan), and a parking area of over 6,800 sqm, still ensuring a 120% excess compared to the current standards.
PG Company believed that at the end of 2019, when constructing the auction plan for the 2 land plots, the competent authority based on the detailed planning at a scale of 1/500 approved by Hai Phong People’s Committee in 2009. Based on the Urban Planning Law, the detailed planning at a scale of 1/500 approved in 2009 should be reviewed and adjusted to be in line with the socio-economic development of Hai Phong city.
In response to these proposals, on October 25, 2023, Hai Phong People’s Committee issued document No. 7288/VP-QH stating that it would not consider the adjustment of the planning for the two plots of land, CC6 and CH2, according to the proposal of the investor. Subsequently, on January 19, Hai Phong People’s Committee issued a document conveying the opinion of the Chairman of the People’s Committee not approving the proposed adjustment of the planning by PG Company.
Accordingly, the Chairman of Hai Phong People’s Committee requested PG Company to urgently implement the mixed-use commercial and service project combined with apartments for sale or rent at plot CC6, and the mixed-use apartment building project at plot CH2 according to the directions of the People’s Committee in document No. 7288/VP-QH.
In the process of requesting the adjustment of the planning, in November 2022, Hai Phong People’s Committee issued a decision to extend the land use term for the 2 plots of land, CC6 and CH2, of the Quan Mau intersection project that this company won the auction for. Specifically, Hai Phong People’s Committee allowed PG Company to extend the land use term by 24 months under Point i, Article 64 of the Land Law for both plots of land.
Based on the decision to extend the land use term of Hai Phong People’s Committee, when the extended term expires and the investor does not put the land to use (not completing the construction of the project as approved by the competent authority), Hai Phong People’s Committee will reclaim the land without compensation as prescribed.
