Underground car park projects still on paper

Specifically, the HCMC Department of Transport has announced a meeting to look into a complaint by Dong Duong Group, the investor of the underground parking lot project in the Trong Dong outdoor stage area in District 1.

Dong Duong Group vice chairwoman Nguyen Thi Bao Quynh said that the project was one of 180 projects that the municipal Department of Natural Resources and Environment had earlier listed for suspension.

According to the department, the project was not included in the city’s annual land use plan as it had lagged behind schedule due to investor’s poor performance or lack of capital. The HCMC government later officially approved the municipal Department of Natural Resources and Environment’s proposal.

Quynh dismissed the city’s decision as groundless because the city government had allowed Dong Duong to lease land to develop the project.

The group has also completed the required administrative procedures and has signed a contract with the District 1 Compensation and Site Clearance Board. In addition, the municipal Department of Natural Resources and Environment has never worked with the company or sent it any letters questioning why the project has been moving slowly.

The firm has prepared the capital for the project as well. As scheduled, work on the project will start in August, Quynh noted.

Meanwhile, another underground parking lot project at Le Van Tam Park in District 1 was started in 2008 but has been put on hold since then.

Vu Xuan Nguyen from the HCMC Department of Transport admitted that it is hard to continue the project as the investor, Underground Space Investment and Development Joint Stock Company, has yet to work out an appropriate financing plan. The department has repeatedly urged the investor to complete procedures to ensure the project’s progress.

Two other underground parking lot projects — one at Hoa Lu Stadium and the other at Tao Dan Park — have yet to be executed as well though they have been planned for years. The prefeasibility studies for these projects have been submitted to the Department of Planning and Investment for consideration and approval.

According to Vu Anh Tuan, director of the Vietnamese-German Transport Research Center, the cost for an underground parking lot is three times higher than that of a normal one, while the parking fees are low, making it difficult for investors to recover capital.