VietNamNet Bridge – Red tape and financial difficulties have delayed construction of several underground parking lots approved by the HCM City government years ago.

Le Van Tam Park in District 1.—File Photo

The Investment Development for Underground Space Corp (IUS), for instance, has yet to get a construction licence for the first parking lot despite breaking ground in August 2010.

Planned to be built under Le Van Tam Park in District 1, the five-storey, US$100 million lot is designed to accommodate 2,000 motorbikes, 1,250 cars, and 28 buses and trucks at one time.

It will also house a commercial centre.

"We got the land–use certificate after many months. And now tortuous procedures have prevented us from getting a construction licence," Le Tuan, CEO of IUS, said.

"It will take us several more months to complete the paperwork demanded by agencies.

"We cannot start construction in the third quarter of this year as the People's Committee wants."

Le Van Tam is one of four underground lots approved by authorities to meet the increasing demand for parking.

Two others are planned to be built at Trong Dong Theatre, also in District 1, with space for 560 cars and in Hoa Lu Stadium for 1,500 cars and 500 motorbikes.

But they remain on paper.

Earlier this year Nguyen Van Loc, general director of Dong Duong Group, the main investor of the Hoa Lu parking lot, sent a letter to the People's Committee saying that two other investors have decided to withdraw from the project due to financial difficulties.

The Water Supply Company had held an 18 per cent stake in the project, and the State Finance and Investment Company, 12 per cent.

Dong Duong Group is now looking for new partners, Loc said.

The fourth lot will be built in Tao Dan Park in District 1 with space for 600 cars and 3,000 motorbikes.

It too is caught up in paperwork, according to its investor, the Viet Nam Urban and Industrial Zone Development Corporation.

Source: VNS