Polaris plant back on track after long delay

Taiwanese investor Polaris Kty International Vietnam will continue construction at its delayed $1.8 billion complex
in the central Ha Tinh

The information was revealed to VIR last week by Ho Anh Tuan, head of Management Board of Vung Ang Economic Zone. Tuan said that the management board had sent a document to ask Polaris to speed progress on the project. The management board and the investor would soon meet to solve site clearance and compensation issues.

According to Tuan, the huge project needed gigantic amounts of compensation that could not be solved overnight, and it was not easy to persuade some local residents to hand over their land.

Ngo Dinh Van, deputy head of Management Board of Vung Ang Economic Zone added that so far, the management board had poured VND70 billion ($3.4 million) into compensation and site clearance costs and had asked Polaris to advance compensation payments, but the investor had not responded.

In July, Polaris asked for help from Ha Tinh Provincial People's Committee because of substantial delays caused by the land clearance process. The province asked the management board to report on the issue by August 20, Van from Management Board of Vung Ang Economic Zone confirmed.

According to the investor, only 50 hectares of the total 430 hectares had been cleared.

Polaris added that the slow land clearance would affect the rate of return on the project.

However, Van explained that the investor had only finished the investment procedures for just 50 hectares to develop the first phase, which included a two star hotel complex, high-rise buildings, villas and agricultural facilities. However, so far, only the hotel was under construction. 

Van said that a withdrawal of the investment certificate remained a possibility because the investor may lack the financial capacity to pursue the project.

Two months ago, the Taiwanese investor was accused of lacking sufficient capital to implement the project, an accusation which the provincial people’s committee backed.

The Tau Voi Lake Tourism and Services project began construction in August 2010, and was Polaris Kty International’s first investment project in Vietnam. The company also possesses tourism development projects in China and the US.

Located over 427 hectares in Ky Thinh and Ky Trinh commune, Ky Anh district, the project includes two, three and five star hotels, golf course, farm, amusement park, sports facilities, lake and entertainment facilities, shopping and a convention centre. The project was expected to finish in 2018.

The investor has earmarked 200 hectares to develop agricultural produce, such as clean vegetables and chicken farming. It will also manufacture high-tech agriculture products to serve the Vung Ang Economic Zone and other surrounding customers.

Around $300 million will be invested in the first phase, which will be used to construct a two star hotel and high-rise buildings and housing for staff working in companies in the area.