HCMC – The Underground Space Investment Development Corporation (USI), the investor of the Le Van Tam underground carpark project, has written to the HCMC People’s Committee requesting consideration in the BOT contract termination policy and a two-year extension to find business partners.
The HCMC People’s Committee has recently decided to terminate the contract with the investor as it has violated the contract terms and failed to secure the capacity to implement the project.
USI started work on the Le Van Tam underground parking lot project in 2010, but it had not been realized until it was terminated by the city government.
According to USI, the reasons for the delay consist of preliminary design and construction cost adjustments, changes in scale and technical solutions, apart from other objective issues.
The company, therefore, requested HCMC to extend the project for an additional 24 months, creating conditions for it to seek business partners to develop the project.
USI said that if the BOT contract termination is the last resort, USI asked the authority to consider allowing the next investor to take over the entire technical file of the project developed by USI and repay the whole or part of USI’s investment capital of VND107 billion.
Under the contract, this four-story underground carpark with total investment capital of VND1,748 billion, which covers an area of 11,000 square meters, can accommodate over 2,000 bikes and nearly 1,300 cars.