Hong Kong’s Millennium Group may lose its planned $1.6 billion Starbay resort project on the Phu Quoc Island if it fails to satisfy the requests of the Kien Giang Provincial People’s Committee.
The committee’s Deputy Chairman Le Khac Nghi, in a recent meeting with Starbay Holdings, a subsidiary of Millennium Group and also developer of the Starbay project, set a deadline of July 20 for the developer to deposit nearly $1 million and complete its application to adjust its investment certificate.
Additionally, Starbay Holdings must prepare financing for site clearance to be ready at a time of the committee’s choosing and complete its 1/500 scale construction plan within six months as of June 10.
This is the strongest warning so far the people’s committee has given to Millennium Group’s subsidiary concerning its project’s long delay. Over the past three years, the provincial committee revoked dozens of resort projects on the Phu Quoc Island due to delays.
“The Phu Quoc Investment Management and Development Authority has urged the developer many times to comply with the timeline, but we have yet to see any movement from their side,” he said.
“The developer has also issued several requests that conflict with the Vietnamese laws. Therefore the project should be revoked in-line with current regulations,” Nghi continued.
The Starbay project is the largest so far planned for the Phu Quoc Island, which is one of Vietnam’s hottest destinations for resort developers.
The 520 hectare beachside project, licensed in 2008, plans to build nine hotels, a golf course, villas and apartments, as well as a number of service and entertainment venues.
Two years ago, in an interview with VIR, Millennium Group’s CEO Martin Kaye said Starbay was nearing completion on all its planning and land issues. He affirmed that construction of the first phase would start within the year (2012) and insisted that financing was in place. Despite his promise, the project has yet to begin and Millennium Group’s capability and intention to build the project are in question.
Home Phu Quoc: Provincial govt issues ultimatum to Starbay