Series of BOT projects in Khanh Hoa progress slowly
Among the projects invested by Phuc Son Group, the most prominent ones are 3 BOT projects at Nha Trang Airport. These projects have been delayed for several years and cannot be put into operation by the end of 2017 as the company promised.
According to the dossier, Phuc Son Group is the investor assigned by Khanh Hoa province to implement the projects connecting Nha Trang Airport with arterial roads; the project of the belt road connecting Ngoc Hoi junction and the project of Ngoc Hoi traffic intersection under a BT contract.
The capital source for payment of the BOT projects is the land funds in the central area of Nha Trang urban center, trade, services, finance, and tourism.
As of August 2022, the total progress of Phuc Son Group’s 3 BOT projects reached about 38%, with a total investment cost of 1,284 billion VND.
Regarding Ngoc Hoi traffic intersection, the investor has not received the land for the northern branch (N4) yet. When enough land is available, the investor will plan for construction. As of August 25, 2023, the total cost invested by the investor in the project is 772 billion VND.
Photo of Ngoc Hoi traffic intersection – a project constructed by Phuc Son Group, at the end of August 2023. (Photo: Huu Long/LD)
In addition, Phuc Son Group is also subject to the recovery of nearly 12,000 billion VND at the trade, service, finance, and tourism center project in Nha Trang.
Specifically, in August 2022, Khanh Hoa Provincial People’s Committee issued a document to Phuc Son Group regarding the financial obligation at the above-mentioned project with an amount of 11,994 billion VND.
This amount is based on the conclusions of the Central Inspection Committee in Announcement No. 680 in 2019 and a recent document of Khanh Hoa Provincial People’s Committee.
Immediately after receiving the notice from the provincial People’s Committee requesting the payment of the above-mentioned amount, on August 8, 2022, Nguyen Van Hau – CEO of Phuc Son Group – responded in a document “regarding the required amount to be paid is 11,994.92 billion VND according to the request of the provincial People’s Committee and the provincial Tax Department, the investor realizes that there is not enough legal basis to calculate, determine, guarantee the principle of equivalent value in implementing investment and construction of projects under the BT form (approval of land prices in the Nha Trang airport area and payment procedures for BT projects have not been implemented)”.
Currently, the violations related to the projects and land at Nha Trang Airport “show signs of crime” have been transferred by Khanh Hoa Provincial Police to the investigating agency under the Ministry of National Defense for consideration and handling under their jurisdiction.
Therefore, regarding the amount that the province has announced but Phuc Son Joint Stock Company has not accepted to pay into the state budget (11,994.92 billion VND), according to the leaders of functional agencies of Khanh Hoa province, it is necessary to wait for the handling results from the investigating agency under the Ministry of National Defense or the court’s decision to force the company to comply.
Phuc Son Trade and Residential Center
The Phuc Son Trade and Residential Center project (Vinh Tuong district, Vinh Phuc province) has a total area of over 127 ha, and the project’s investor is Phuc Son Group Joint Stock Company (Phuc Son Group).
The Phuc Son Trade and Residential Center – phase 1 was approved in detail planning in December 2009, and then went through three adjustments in September 2012, April 2014, and December 2016.
Phase 2 of the project was approved in detailed planning in July 2013, and then adjustments were made in April 2014.
Phase 1 covers an area of about 15.5 ha, and Phase 2 covers an area of about 111.8 ha. The expected population scale for both phases is 15,788 people.
For the project’s phase 1, after the adjustment of planning, the area of commercial land in the project increased, the area of attached residential land decreased, the area of houses with gardens increased due to land use restructuring; the total area increased by 1,624 m2 by taking into account the area of phase 2 to ensure that the residential plots are within the range of phase 1 of the project.
As for phase 2 of the project, after the adjustment, the area of public land decreased, the area of greenery and water surface decreased, the area of transportation and parking lots increased; the area of residential land increased due to the removal of service land planning, additional planning on land outside the functional area of urban and commercial services; removing an area of 29,401 m2 from the project (including existing agency land, existing cemetery land, transportation land, and current residential land).
Investment and upgrade project of Hong River embankment
This is also a project in Vinh Tuong that has been invested from the state budget and approved by Vinh Phuc Provincial People’s Committee since 2010, with a implementation period of 5 years (2010-2015).
The project includes investment in the construction of a 28km-long upgraded embankment and road connecting Sông Hồng, including 17km through Vinh Tuong and 11km through Yen Lac district, section through Vinh Tuong.
The project has a total investment of over 1,500 billion VND.
Vinh Tuong wholesale market project
In 2019, Mr. Hau’s company also completed the transfer of the Vinh Tuong wholesale market project from Song Hong Thang Long Investment and Trading Joint Stock Company. The project covers an area of 186.49 ha, with a total investment of 2,290 billion VND.
A project by Phuc Son in Vinh Tuong. (Photo: Vinh Phuc Newspaper)
In addition, in early 2019, Phuc Son Group was also appointed by Vinh Phuc Provincial People’s Committee to be the investor for the investment and construction of infrastructure for the Tho Tang – Lung Hoa industrial cluster, Vinh Tuong district, with a scale of nearly 36 ha. The total investment in infrastructure construction of the project is expected to be 427 billion VND.
Furthermore, Phuc Son has also implemented residential projects for low-income people with 15 floors (Vinh Yen); the Phu Dong Road dual urban project (Viet Tri, Phu Tho province) with a scale of 149 ha.
On February 26, the Investigation Agency of the Ministry of Public Security issued a decision to initiate a case of “Serious violation of accounting regulations” at Phuc Son Group Joint Stock Company, Thang Long Investment and Trading Joint Stock Company, and related units.
On the same day, the Investigation Agency of the Ministry of Public Security issued decisions to prosecute and temporarily detain Nguyen Van Hau (also known as “Hau Phao”) – Chairman of the Board of Directors of Phuc Son Group Joint Stock Company.
The initial investigation results determined that the Chairman of Phuc Son Group and other suspects had committed acts of forgery and falsification of revenue, related assets, off-book accounting, causing particularly serious damage to the state.
