Daewoo E&C starts building Starlight City in Vietnam

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Daewoo E&C starts building Starlight City in Vietnam

Daewoo Engineering & Construction said yesterday it has broken ground on a $2.5-billion project to build a new urban spread called Starlight City in Vietnam.

The groundbreaking ceremony came 16 years after the builder first offered its proposal to build a residential complex and develop plots of land to be used for commercial, cultural and government buildings spread over 2 million square meters (200 hectares) in Hanoi.

The massive project was suspended in 1999 when Daewoo Group, once Korea’s second-largest conglomerate, collapsed under the weight of $80 billion of debt in the wake of the Asian financial crisis.

The builder, a former subsidiary of the now defunct Daewoo Group, was taken over by the state-run Korea Development Bank in 2010.

Vietnam approved the project in 2006, putting the long-stalled project back on track, according to Daewoo E&C. THT Development, Daewoo E&C’s wholly owned Vietnam unit, will take charge of the project, which is scheduled to be partly financed by project finance arrangements with Korea Development Bank and other local financial companies, according to the builder. A Daewoo E&C official declined to give further details on project finance arrangements.

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