Multi-million Danang resort comes to a dead end

As of now, the developer, consisting of Hai Duy JSC and Ho Chi Minh City Investment Services JSC (Invesco), has just completed the nearly 2,000-metre surrounding wall, the foundation of a more than 3,200 metre road, built an over 3,300 metre sewage system, dug and completed site clearance of more than 146,000 cubic metres of rubble, and completed an administrative and service building.

Meanwhile, as was scheduled by the end of 2016, the developer must finalise the construction of 80 per cent of the surrounding wall, 70 per cent of the sewage system, and the design work of 120 villas, a 180-room hotel, a block of 270 apartments, and two restaurants.

This delay, as explained by Bai But Resort Project Management Unit, is attributable to Son Tra Peninsula’s complex terrain, which proved a significant hindrance to the project.

A staff working at the Danang branch of a prestigious bank, however, unveiled that “The real cause which was undisclosed by the developer is that the project’s financial arrangements remain unsettled to this day.”

According to Danang Tourism Department, ocean tourism is a strong advantage in realising the city’s tourism development strategy in which Son Tra peninsula’s low land is highlighted as an important asset.

Abounding with ecotourism potential, Son Tra peninsula has emerged as a new destination for investors wishing to cash in on the city’s unparalleled tourism potential.

The area is now home to dozens of luxury resorts, hotels, upscale villas, and recreational site projects especially catering to the affluent.

Some of these projects have yet to begin construction or are delayed in construction, like of the Bai But resort project, which has cast a darker shade on Danang’s budding tourism scene.

Danang city has issued an ‘ultimatum’ and threatened to revoke the project’s investment certificate unless it pick up in pace. However, 12 years after a spectacular kick-off ceremony, the project investor has revealed their financial incapacity.

In a talk with VIR earlier this week about the Bai But project, Deputy Chairman of Danang People’s Committee Phung Tan Viet said, “The project has been stalling despite repeated warnings from the city’s management. I will check on its progress before making further comments.”