The People’s Committee of Phu Yen Province has revoked the license for the Nam Tuy Hoa Creative City project, due to the investor’s failure to make an initial deposit despite a deadline extension.
Galileo Investment Group Inc of America, the main investor of the US$11.4 billion project has many times in the past delayed the implementation of the project. They were unable to even pay the initial security deposit money as required by law.
The authorities now have finally found out that the US group is not financially sound for developing the project.
After the company was unable to pay the initial deposit last September, the local authorities had agreed to extend the deadline for the Group until December 31, 2010. However, even after a strong warning and threat by the provincial government for revoking of their license, the company did not make the payment.
The project was granted a license in October 2009, to build a modern township with high-tech facilities, a new financial, educational and recreational centre and training services for highly qualified human resource.
The project covering an area of 7,656 hectares was acclaimed as the best place to do business in Southeast Asia.