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Ho Chi Minh City’s property bidding environment is likely to improve on the back of its controversial golden sites pilot programme.

The city’s Department of Planning and Investment (DPI) last week proposed a draft bidding evaluation criteria, which set a 100-mark assessment of bidder’s investment ideas such as objectives, scale, construction timeline, and socio-economic effectiveness (20 marks), real estate project investment and management experience (30 marks) and financial capacity (50 marks).

Bidders, who have more than 70 marks, will make a short list which will be dedicated by total investment values. Pham Van Hai, general director of Asia Commercial Bank Real Estate Company (ACBR), said the evaluation process would continue to be hurt if the city still considered bidder’s financial support to the city a decisive factor in deciding bidding winners.

“As financial capacity is the most important factor to picking the winner, the financial support as a goodwill assistance to the city should also be implicitly included in the total investment values and be represented through compensation prices and comprehensive infrastructure development in and around projected area,” he added. “This could help simplify the criteria and avoid any bribery.”

Ho Chi Minh City previously introduced two pilot bidding sites, Binh Thanh district’s Van Thanh market and District 1’s Tran Hung Dao, Nguyen Thai Hoc and Pham Ngu Lao street triangle.

The bid for the 13,000-square-metre triangle site, however, is still under government investigations as Khanh Gia consortium as the bidding loser, which offered $415 million to develop the property complex and agreed to donate $21.2 million as goodwill support for the city’s budget, complained to the government over alleged bidding irregularities.

The winner Thai Son Consortium pledged $406 million in investment, but offered a higher financial support of $111 million in the final competition round early last year.

DPI director and head of the city’s bidding steering board Thai Van Re told a people’s committee meeting last week the pilot bidding sites had provided a lot of experience and some incidents would be prevented from recurring.

“The mark-oriented bidding assessment will help us avoid subjective bidding judgments as their every attribute will be counted in the assessment process,” Re added.

The draft, which is waiting for the people’s committee’s approval, requires bidding sites to be publicly announced via the media and the Ministry of Planning and Investment’s website at least two months before bidding documentation is issued.

Also, if the winner fails to kick-start a project in a regulated time, they will risk losing the project and be prohibited from taking part in any bidding for three years.

The people’s committee, meanwhile, has fundamentally approved investment guidelines for two District 1 golden sites surrounded by Nguyen Hue, Ngo Duc Ke, Ho Tung Mau, and Huynh Thuc Khang streets and Ho Tung Mau, Huynh Thuc Khang, Ton That Dam, and Ton That Thiep streets. The sites’ planning will be soon announced and brought online for public bidding under DPI guidance.

Source: VIR

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