Sai Gon Telecommunication and Technologies Corp(SaigonTel), the local partner of the US$1.2 billion Thu Thiem Software Park, has asked for permission from HCM City authorities to find a new foreign partner to replace TA Associates International Pte Ltd in the joint-venture.

"We'd like to ask for permission to seek another partner to join us to carry out the [Thu Thiem Software Park] project, for the development of the HCM City and Viet Nam as well," said the letter sent to the HCM City People's Committee by SaigonTel General Director Hoang Sy Hoa last week.

The proposal was made after TA Associates Viet Nam Ltd Co (TA) – a 20:80 joint venture between SaigonTel and Singapore's TA Associates International, an affiliate of Taiwan's Teco Group – lost the licence for the District 2-based park project after making tardy progress and "unreasonable requests."

SaigonTel said it had incurred huge losses due to the foreign partner's withdrawal from the project.

It previously proposed paying 100 per cent of land rentals on behalf of its partner but the proposal was turned down by the city authorities and the Investment and Construction Authority for Thu Thiem New Urban Area (Thu Thiem ICA).

In response to SaigonTel's proposals, an official from Thu Thiem ICA said: "SaigonTel has the authority to make any proposal. But these are just their own proposals. We are awaiting for the decision from the HCM City People's Committee."

Earlier, at a press conference on November 10, Thu Thiem ICA explained that TA had sought "adjustments" to its licence terms only five days after it received the licence for the software park project.

The proposed adjustments included a reduction in land rental, more time to pay and an increase in the ratio of residential land in the project to 26 per cent from the original 10 per cent.

It also wanted to be allowed to sell residential land to the public rather than just the technology experts employed by the park.

But authorities rejected the demands, saying they were unreasonable.

A stalemate followed and for more than three years after the groundbreaking ceremony in July 2008, the land allotted for the park remained unused.

The head of planning division at the Thu Thiem Urban Area management board, Duong Cong Luan, said: "The investor has to pay rent of at least US$1 million for the land."

The contract terms required payment of 50 per cent of the rent (for 50 years of operation) within 60 days from the issue of the licence, and the rest within 30 days from the date the land lease contract was signed, he explained.

The investors also had to pay a fine of 0.05 per cent per day for late payment, he said, adding TA was yet to pay either the rent of the fine.

VNS