CapitaLand: Safety is the top priority
Editor’s Note: The project to build D’Edge towers in Thao Dien Ward in District 2 got off ground last year. During its construction of the basement, several houses surrounding the construction site have been impacted. Chen Lian Pang, CEO of CapitaLand Vietnam as the project owner, speaks about the problem and solutions to address it.
Chen Lian Pang, CEO CapitaLand Vietnam
Question: It is said that D’Edge construction site is eroding the foundations of neighboring houses. What is your opinion about the problem?
Chen Lian Pang, CEO CapitaLand Vietnam: Human safety is our priority and we are working closely with local authorities and independent experts to solve the problem. This is a big concern as the matter may ruin our future and investment plan in Vietnam. Currently, based on contractual terms between CapitaLand Thanh Nien as the developer and Tuan Le Company as the main contractor, the developer has handed over the building site to the contractor. Thus, all external parties including the developer must obtain permission for site entry. As the problem has been predicted, CapitaLand has signed insurance contracts to deal with all possible risks. In fact, problems are inevitable during basement construction. As an experienced international developer, we always have preventive measures to minimize risks.
Question: Could you explain the insurance policies?
First, we make sure that insurance contracts are finalized prior to starting construction. Despite high insurance costs, such contracts will help us deal with all losses and problems. In case of troubles, a third party will be invited for assessment. Before starting a project, we take photos and make a report on the conditions of surrounding houses to facilitate comparison and compensation.
Question: How is the compensation for the six affected houses?
Five out of six homeowners have accepted our support in-house repairing while the remaining is asking for higher compensation. The investigation process is put on hold as the owner does not allow the third party to enter the site. I can tell nothing now as the examination is still going on. However, as an international developer with more than 20 years of experience, we promise to do the best to address the situation.
Question: Will the negotiation process slow down construction progress of D’ Edge?
While the assessment step is still taking place, I don’t think it a wise solution to compromise with the homeowner to resume construction soon. We still stick to our principles and follow all legal steps. As a Singapore-listed company with a long-term vision in Vietnam, we will not compromise on some short-term benefits.
Question: How about conclusions of the third party?
We have yet to obtain results from the third party due to troubles with the homeowner. However, we have prepared enough proofs for further negotiation.
Question: Can you tell about the appointed contractor?
Tuan Le Company started out as an industrial contractor, mainly building factories and high-rise buildings. During our selection process, it was building a hotel project in Thao Dien Ward in HCMC’s District 2. The firm won the top score thanks to experience in building large projects such as Nine South, the Ocean Estates, Dai Phuoc Lotus (VinaCapital), Riviera Cove (Keppel Land), Nhon Trach City Center (IJM Land) and a number of factories such as Nestle Bong Sen (Nestle), Heineken Quang Nam (Heineken), and TaTa coffee Vietnam (TaTa).
Question: Did CapitaLand meet the same problem before?
Problems during basement excavation happen around the world, especially in busy cities. In case of troubles, insurance firms will compensate for affected houses.
Question: When will the basement construction resume?
We are trying to move on as soon as possible. However, we will follow Vietnam laws and respect all legal steps such as assessment and compensation. We are still doing our best to resolve the issue. We hope to receive cooperation from the last homeowner and most of all, we always put safety first.
– Thesaigontimes –