The Indian developer cannot prove it is financially ready for the US$1.2-billion plan
Khanh Hoa Province has officially revoked the permit for a controversial property project set to take over 14 hectares of Nha Trang beach after its Indian investor failed to show that it had the money.
Huynh Ngoc Bong, the province spokesman, said Friday that Dewan International Vietnam "no longer has the right" to invest in the US$1.2-billion Phoenix project, local media reported.
Bong said the company had missed two deadlines, in January and June, to put at least VND420 billion (US$19.26 million) into the ambitious project.
He said the company now has to end all activities linked to the project and has to take responsibility for all the related costs.
Dewan first planned a mixed development of more than 70 hectares including a hotel, an apartment building of 65 stories, a boardwalk and an entertainment complex, which it said would be “rebuilding Nha Trang” by stretching over 4.3 kilometers of the popular beach.
But the province last May scaled the project down to the apartment building and the hotel on 14 hectares after the media reported opposition from residents, architects, and some former officials.
The critics said the province was privatizing the beach and offering it exclusively to those with money.