A Change of Guard

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Tuesday, 1 January 2013

Crane removed from Gold Tower 42 [Is the builder of Cambodia's tallest building going bankrupt?]

Last Updated on 24 December 2012 
Phnom Penh Post




By Siv Meng & Rupert Winchester
 121212 02 

Gold Tower 42 (L) . Photograph: Hong Menea/Phnom Penh Post 

Last week, the crane on the top of Gold Tower 42 was removed, adding to the sense that the completion of the Korean-owned skyscraper is ultimately a distant hope. The owner of the unfinished skyscraper, sitting at the corner of Sihanouk and Monivong Boulevards entered into arbitration with the project’s builders earlier this year. Construction on the $240 million project was halted in September 2010 because of a lack of financial resources by the South Korean owners.
Sung Bonna, Director of Bonna Realty Group and president of the Cambodian Valuers and Estate Agents Association, said that the Cambodian government should pay attention this case even though the building is in the private sector because it is fundamental to the reputation of Cambodia. “The government should take care of it and find a solution on how to resolve it,” he said.
Before the global financial and economic crisis in 2008, Gold Tower 42 was the highest building in Phnom Penh but the construction has not continued since the crisis began.
Dith Channa, General Manager of VMC Real Estate Cambodia, said that he has been given no information about when the building work would continue but he said he hopes that Gold Tower 42 will be completed in the future.
“Government could not take the interference this case because Cambodia implements free marketing. But government can establish a law for limitation of construction and how much money that builders keep in the bank before allowing the construction,” Channa said, related to the intervention of government. “This is good for government, investors and people.”
Korean officials at the site refused to comment, while their Khmer staff said that their managers did not meet reporters.


To contact the reporters on this story: Siv Meng at meng.siv@phnompenhpost.com

Rupert Winchester at rupert.winchester@phnompenhpost.com

1 comment:

Anonymous said...

Cambodia's ballest? O' tallest?