This is one of 6 projects facing difficulties under Decision No. 1568/QD-TTg, which has just been reported by the Ho Chi Minh City People's Committee to the Prime Minister and the Ministry of Finance.
The Phan Dinh Phung Sports Center construction project (Phan Dinh Phung gymnasium project) was once expected to be the most modern project in Ho Chi Minh City, serving international sports events, especially the 2012 ASIAD - the time when Vietnam was expected to host the event.
In April 2010, the Prime Minister issued a document approving Ho Chi Minh City to apply the form of BT (build - transfer) contract and appoint an investor to implement the project. At the same time, the Prime Minister also agreed to allow Ho Chi Minh City to sell the designated land at 257 Tran Hung Dao (District 1) to create capital to implement the project.
After many changes in investors due to financial capacity not meeting requirements, it was not until January 2018 that the Ho Chi Minh City People's Committee officially approved the joint venture of Compensation and Clearance Joint Stock Corporation - Phat Dat Real Estate Development Joint Stock Company as the investor to implement the project. Previously, in July 2016, the project's feasibility study report was approved by the Ho Chi Minh City People's Committee.
In June 2018, the Department of Culture and Sports of Ho Chi Minh City signed an investment agreement with the investor consortium, marking a big step forward in the project implementation process.
However, after nearly a decade since the policy was approved, the project has not been able to be implemented.
On December 27, 2024, the City People's Committee issued Decision No. 6060/QD-UBND, officially canceling the feasibility study report approved in 2016, which means stopping the project under the BT contract.
According to the Ho Chi Minh City People's Committee, the project has been delayed for many years, causing many conditions and initial factors to no longer be suitable for current reality.
Urgent consideration was the basis for the Ho Chi Minh City People's Committee to apply for an investment policy in 2010 - to serve the 2012 ASIAD - by the time of investor approval in 2018, it was no longer meaningful.
At the same time, the appointed investor is no longer the original unit that the City submitted to the Prime Minister, leading to changes in capacity, commitments and implementation plans.
Another problem is that the total investment of the project has doubled, from the initial VND988 billion to more than VND2,215 billion, causing difficulties in balancing the budget and affecting the effectiveness of the project.
In addition, the legal corridor related to bidding and the form of investor designation has changed significantly compared to 2010. Therefore, the legal basis for implementing the designation of investors under the old mechanism is no longer suitable, even posing many potential risks.
From the above shortcomings, the Ho Chi Minh City People's Committee determined that if it continues to follow the BT method, the project will have many potential risks in terms of finance, legality and investment efficiency.
In response to the urgent need for sports facilities to serve social needs and socio-economic development, the Chairman of the Ho Chi Minh City People's Committee has directed the conversion of investment methods to public investment.
Currently, Ho Chi Minh City is assigning the Department of Culture and Sports to preside over negotiations with investors to agree on a plan to terminate investment cooperation.
At the same time, the authorities will review and determine the reasonable and valid costs that the investor has spent during the project preparation period to have a suitable refund plan.
