Only 1/3 of BT projects are starting to rebuild
Phuc Son Group Joint Stock Company has 3 BT projects in Nha Trang, built from 2017 to present but not yet completed. These are projects that businesses have invested themselves in building infrastructure for the locality. Replace the State's capital with land in the old Nha Trang airport area for businesses to do urban and resort projects.
These are 3 BT projects including the Ring Road connecting Ngoc Hoi intersection (VND1,196 billion); Ngoc Hoi intersection (VND1,351 billion); Routes and intersections connecting Nha Trang airport area (VND1,015 billion). These projects were all selected by Khanh Hoa province as investors, Phuc Son Group in special cases.
As of February 2025, the volume of Ngoc Hoi Intersection project implementation reached 52% (642 billion VND); Ngoc Hoi Intersection Ring Road reached 24% (286 billion VND) and Nha Trang Airport Intersection project only reached 11% (40 billion VND, not including site clearance costs).
Of these 3 projects, the investor has only committed to clear progress for the Ngoc Hoi intersection project.
Mr. Hoang Quang Hung - Vice Chairman of Phuc Son Group - signed a document to the competent authorities in Khanh Hoa province on the plan to implement the Ngoc Hoi intersection project. Before the above document was issued, Phuc Son Group had completed its personnel work in Nha Trang and arranged finance for construction after nearly a year of closure.
Accordingly, this intersection has completed important items such as roundabouts, branches N1, N2, N3. In particular, the N4 branch has not been constructed, and Phuc Son Group has committed to do so in 2025. Items such as service roads and pedestrian bridges across the railway are also committed to be implemented by the enterprise this year. This enterprise recommended that the authorities promptly hand over the site for uninterrupted construction.
No basis to determine the counterpart land fund
In addition to the Ngoc Hoi Intersection project, the remaining 2 projects, Phuc Son Group will find it very difficult to implement in the coming time, due to legal problems regarding land fund to recover capital to pay for BT contracts in the Nha Trang airport area.
According to the authorities of Khanh Hoa province, in order to have a basis for specific adjustments to the area, name, symbol, and value of each plot of land recovered for the BT project according to the conclusion of the Government Inspectorate, the Area Consolidation Planning Project must be approved and the value of land fund in the old Nha Trang airport area must be determined.
However, up to now, the Regional Planning Project has not been updated and adjusted and has not been agreed with the Ministry of National Defense on zoning planning. Because there is no basis to determine the value of the counterpart land fund, there is no basis to adjust BT contracts according to the conclusion of the Government Inspectorate.
As for the BT project, the intersections connecting Nha Trang airport area (VND 1,015 billion) are not currently eligible for construction, especially the land funds of the National Defense agencies that have not been handed over to the locality to continue implementing the project.
There are still problems, under the authority of the Central agency to resolve the timing of applying unit prices for materials, labor, and machinery to adjust the total investment of the project and adjust the value of the BT project in the BT contract.
Khanh Hoa province has also considered the option of Phuc Son Group not being able to implement the remaining projects.This is a case due to some force majeure conditions, when the enterprise could not continue implementing the project and was forced to terminate the BT contract.
However, there are currently no regulations and instructions on handling the workload that the investor has carried out as well as the procedures related to the termination of the BT project contract.
All of the above problems of BT projects have been gathered, reviewed and reported by Khanh Hoa province to the Central agencies for guidance and resolution.
