Friday, September 12, 2008

Thirty investors eye Paradise resort project in Vung Tau

11/09/2008, 08:43
Around 30 local and foreign investors have shown keen interest to replace the investor of the slowly developed Paradise resort project in Vung Tau in Ba Ria-Vung Tau Province, 125km southeast of HCMC.

Le Kim Huong, director of the province's Department of Planning and Investment, told the Daily that many of the investors came from abroad and that they had sent their proposals to both Vung Tau-Paradise Joint Venture and the department.

They have asked the provincial government for help to take over the project along Thuy Van Beach, she said.

She attributed the attractiveness of this project to its prime location. "It's very difficult to find another good location like the Paradise project's," Huong said.

The 220-hectare Paradise resort has not been fully developed though the joint venture between Vung Tau International Tourism Company and Taiwan's Paradise Development and Investment obtained a 25-year license in 1991.

The company originally planned to spend US$97 million on the Paradise project but 17 years after it got the license, the company has built a few facilities.

Therefore, the province's Department of Planning and Investment has informed Vung Tau-Paradise Joint Venture of an intention to revoke the license for the project. The Ministry of Planning and Investment and the provincial government have thrown support behind this move.

However, the investor will have its license' taken back when the provincial government gives a final stamp of approval.

There are two possible scenarios. The joint venture would be either dissolved or transferred to other investors to continue developing it. "I think the second scenario looks better because we should press on with the project," Huong said.

She said the provincial government would have a meeting to seek a way out for the project. If the province opts for the second way, the current developer and new partners should reach agreement on the project transfer.

>>Axe to fall on Paradise Resort project in Vung Tau