Rusalka project rebirth with new name but old backer

The project will capitalise on stunning views

According to a Khanh Hoa Provincial People’s Committee document sent to Prime Minister Nguyen Tan Dung, the local government asked for Focus Travel Nha Trang Corporation to be Rusalka’s new developer, which would inherit all the rights, responsibilities and debts of the old developer Rus-Invest-Tur Corporation (RIT).

In a surprising move the head of the new developer is the once disgraced backer of the Rusalka project. The resort was initially developed by RIT, a joint venture between three Russian entities, from 2002 with registered capital at $15 million. The project, covering 46.1 hectares, is situated in one of the most beautiful locations in famous Nha Trang.

However, the project was stopped in 2005 as Nguyen Duc Chi – the only lawful representative of RIT – was accused of buying 31,400 tonnes of rice from Tra Vinh Food Company without pay $5.7 million. The investigation by police at that time also accused Chi of forging signatures and documents to illegally gain a licence for developing Rusalka.

One year later, police distrained Rusalka resort for investigation while the Ministry of Planning and Investment (MPI) revoked the investment licence of the resort without liquidating it. In 2008, Chi was sentenced to five and a half years imprisonment.

But, the People’s Supreme Court announced that Chi’s crime “was not related to petition for investment licence of Rusalka project” and removed the distrainment record after Chi was released from the prison in 2010, giving him the property back.

In the Khanh Hoa Provincial People’s Committee document, the local government said the property now belonged to Chi, but if he wanted to keep going on with the project, he would have to establish a new legal entity and pay all money RIT had owned contractors.

Focus Travel Nha Trang Corporation was established by Chi under an MPI proposal and the agreement of Prime Minister Nguyen Tan Dung. Since late last year, the corporation has widely announced to pay debts owned by RIT. As a result, 12 contractors, organisations and people were negotiating with the corporation over debts worth $1.43 million.

“Focus Travel Nha Trang is suitable to the situation of this project as well as legal regulations,” said the provincial committee in the document. However, Focus Travel Nha Trang Corporation still needs Dung’s blessing to get started and the resort will be known as Champarama Resort & Spa.