Lam Dong does not allow the investor consortium to delay compensation payment.

Lam Dong Provincial People's Committee has just decided not to approve the proposal of the consortium of Hano - Vid Real Estate JSC and ACC Vietnam JSC on extending the time for advance payment of compensation, support and resettlement at the Eastern Residential Area project of Dinh Van town, Lam Ha district.

Lam Dong Provincial People's Committee requested the above joint venture to immediately pay compensation, support and resettlement within 14 days from February 2.

In case the consortium fails to make the advance payment within the deadline, the Department of Planning and Investment must report to the Provincial People's Committee to terminate the decision to approve the investor and proceed to select an investor for the Eastern Residential Area project of Dinh Van town.

At the same time, the Provincial People's Committee assigned the Lam Ha District People's Committee to speed up the preparation and approval of compensation, support and resettlement plans and immediately carry out compensation payments and site clearance after the plan is approved.

The Eastern Residential Area Project of Dinh Van Town is located in Dinh Van Town, Lam Ha District with a scale of 14.5 hectares and a total investment of 820 billion VND. According to the plan, the residential land area of ​​the project accounts for 6.1 hectares. The compensation and site clearance costs of the project are about 75 billion VND.

On November 16, 2023, Lam Dong Provincial People's Committee issued a decision approving the consortium of Hano - Vid Real Estate JSC and ACC Vietnam JSC as project investors.

In this decision, the Provincial People's Committee requires the investor to advance 74.74 billion VND in compensation, support and resettlement costs within 60 days. After this deadline, if the investor does not advance or does not advance enough money, the decision approving the investor will expire.

In early January 2024, the above consortium issued a document stating that from the time the project was approved by the investor until the compensation, support, and resettlement plan was approved, it had to go through many other procedures.

At this time, the consortium of investors said that the transfer of the entire 74.74 billion VND in advance payment for compensation and site clearance has not yet been disbursed, leading to capital stagnation and waste of the enterprise's resources.

Therefore, the consortium of Hano-Vid Real Estate JSC and ACC Vietnam JSC proposed to pay an advance of VND 11.1 billion to carry out preparations related to project site clearance.

With the remaining amount, the consortium commits to pay the entire amount within 15 days from the date of approval of the compensation, support and resettlement plan.

However, this proposal was not approved by Lam Dong Provincial People's Committee.