The People’s Committee of Khanh Hoa province will refund the money to businesses that have provided advance payments for investing in infrastructure in Cam Ranh because it did not comply with regulations.
During the 10th session, the People’s Council of Khanh Hoa province approved the revocation of two resolutions concerning capital mobilization for infrastructure investment in the North Cam Ranh Peninsula tourism area (Khanh Hoa).
The two resolutions, issued in 2008 and 2014, allowed the mobilization of capital through advance payments of land lease fees from investors in the North Cam Ranh Peninsula tourism area, based on voluntary contributions without interest.
Since 2008, Khanh Hoa province has issued two resolutions to mobilize capital through advance land lease payments from investors for the purpose of constructing infrastructure in the Cam Ranh Peninsula tourism area. The province had also planned to raise 1,000 billion VND with these two resolutions. Businesses were expected to recoup their temporary advance capital from the province by offsetting it against the land lease fees at the project, starting from 2019.
A corner of the North of Cam Ranh Peninsula in Khanh Hoa. Photo: X.N.
However, in November 2022, the Ministry of Finance issued a letter stating that “the province of Khanh Hoa’s advance land lease payments for infrastructure investment is not in compliance with the provisions of the State Budget Law 2015, the Law on Public Debt Management, and related guiding documents.” Therefore, the Ministry of Finance requested Khanh Hoa province to review and implement the current regulations correctly.
After inspection and review, the People’s Committee of Khanh Hoa province presented and the People’s Council of Khanh Hoa province approved the revocation of the resolutions on mobilizing capital from investors. Along with this, the local authorities have refunded the advance payments to many investors.
However, some businesses that had previously provided advance land lease payments to the province have not yet been refunded, totaling approximately 200 billion VND.
Khanh Hoa province plans to refund this amount in 2024 and 2025, with 100 billion VND each year.