Authorities have officially revoked a license for a mammoth US$11.4 billion tourism project invested by US-based Galileo Investment Group Inc in the central Vietnamese province of Phu Yen, a top official confirmed.

Ho Van Tien, spokesman of the Phu Yen provincial People’s Committee told Tuoi Tre yesterday afternoon that the Nam Tuy Hoa Creative City had its license withdrawn.

The reason is that the developer of the tourism project in Tuy Hoa city has failed to make a deposit despite getting an extension of the deadline.

Local authorities had earlier agreed to extend the deadline for Galileo until December 21 after initially asking for a deposit in September.

But, despite a strong warning that the Phu Yen Province government will revoke its license after the deadline, the developer has not made the payment.

The company received a license in October 2009 to build a modern township with high-tech facilities, a new financial, educational, and recreational center, training services for high quality human resources, and others.

It is committed to investing US$1.68 billion in the 1,300-ha first phase by 2015.

The investment is expected to rise to $11.4 billion in the second phase to be developed on 5,600 ha in 2016-25.

The developer has claimed Creative City will be the best place to do business in Southeast Asia.

Just last month, the province also proposed scrapping another, much more mega project there.

Local authorities are reported to be seeking central government’s approval to scrap the US$250 billion project invested bythe United Arab Emirates-based Sama Dubai group.

Pham Dinh Cu, chairman of the municipal People’s Committee, told Tuoi Tre that the proposal was made since the project owner has not taken any move since the project was licensed in 2008.

The project, the biggest-ever in Vietnam, envisages a 240,000-hectare complex of township and economic zone in two districts of Tuy An and Dong Xuan and Song Cau Town.

Sama Dubai has suffered losses due to the global economic meltdown, according to Mr Cu.

Source: Tuoi tre