Khanh Hoa Province’s government has granted the investment license for a company to continue the unfinished tourism project that was halted after its investor was captured over fraud eight years ago.
Trong Diem Nha Trang (Nha Trang Focus) is now allowed to start work on its Champarama Resort & Spa project at the 46-hectare land plot zoned for the erstwhile Rusalka project at Bai Tien beach in Nha Trang City, Vo Tan Thai, director of the provincial Department of Planning and Investment confirmed on Friday.
The VND1.2 trillion (US$57.69 million) project is expected to include a deluxe resort, hotel, and restaurant complex.
Khanh Hoa government required that the investor finish the 15-ha resort along the beach and other unfinished construction left by the Rusalka project, and put the complex into operation within two years.
The new investor also has to accept all duties and responsibilities of the debts of the old investor — the tourism investment and development company Rus-Inves-Tur (RIT).
The erstwhile Rusalka project received the investment certificate in 2000 and was set to set up a tourism complex spanning 43.5 hectares that cost some $15 million.
It was invested by RIT, chaired by Nguyen Duc Chi. In 2005 Chi was arrested under charge of “frauds and appropriation of others’ assets.”
The project thus came to a halt, had its assets frozen and the license revoked in 2006, and ended up being liquidated in mid-August 2011, under an order by the Prime Minister.
On April 1, 2010, however, the Supreme Court overturned the accusations against Chi, and all assets were returned to Chi.
Six months later, the Prime Minister assigned Khanh Hoa’s government to establish new legal entity to continue the project to ensure the investor’s benefits and reduce financial damages.
RIT’s former chairman Chi then proposed to have Focus Travel Nha Trang Co take over the project, a request that was green-lighted by the coastal province’s authorities.
Focus Travel Nha Trang was chaired by Nguyen Duc Tan, who is Chi’s brother.