HCMC attempts to mobilize resources for financing big projects

Ho Chi Minh City is attempting to mobilize resources for financing big projects, especially trash-filled canal cleanup projects.
Many apartment buildings have been built along Tan Hoa - Lo Gom Canal Street, passing through District 6 (Photo: SGGP)

Many apartment buildings have been built along Tan Hoa - Lo Gom Canal Street, passing through District 6 (Photo: SGGP)

The southern largest city is determined to call for social contribution to clean polluted canals in addition to deployment of its state budget. Deputy Director of Ho Chi Minh City Department of Construction Le Tran Kien had a talk about this matter.

According to Mr. Kien, in implementing the city Party Committee's Action Program No. 15-CTrHD/TU on the program of urban embellishment and development for the period 2016-2020, the city has compensated 2,479 out of 20,000 houses for reallocation reaching 12.4 percent of the target.

By 2020, the city reviewed and decided 21,100 houses on and along the canals that need to be relocated. In the period of 2021-2025 and the following years, the city affirmed to relocate 6,500 houses on and along canals with a compensation of VND18,073 billion.

Specifically, in the first phase, around 3,220 dilapidated houses on canals citywide will be removed with a total estimated investment of VND12,530 billion. The city will carry out three projects with dual goals- both solving the need for drainage to prevent flooding and relocating houses on and along the canals for urban embellishment. The first project will be dredging, and building infrastructure of Xuyen Tam canal from Nhieu Loc - Thi Nghe canal to Vam Thuat river through Binh Thanh and Go Vap districts with an expected cost of VND9,350 billion for resettlement of roughly 2,196 shanty houses.

The Tan Binh District-based Hy Vong canal improvement project will be carried out to drain rainwater and reduce flooding in Tan Son Nhat international airport area with estimated spending of VND1,980 billion to relocate 190 houses. For the VND1,200 billion project of dredging and renovating Van Thanh canal in Binh Thanh District, the city will remove 834 makeshift houses.

In the second phase, the relocation of 3,250 houses is needed with an estimated capital of VND6,154 billion including 14 projects to relocate houses on and along canals that have implemented investment preparation steps in the 2016-2020 period. Amongst them, eight projects were approved to use the state budget while the city has approved the compensation of six other projects, now they will be implemented in the period of 2021-2025.

In the third phase, approximately 7,282 apartments in 30 projects will be relocated with a sum of VND10,362 billion. Eight projects have been approved for public investment policies and have been assigned capital plans to prepare for investment in the 2016-2020 period. However, these eight projects have not been included in the medium-term public investment plan for the 2021-2025 period.

The remaining 22 projects, mainly located in Districts 7 and 8, so far have not had a registration of capital needs, investment preparation, or planning procedures for proposing public investment policies.

Currently, Ho Chi Minh City focuses resources on implementing large projects such as the Xuyen Tam canal, and Tham Luong - Ben Cat - Nuoc Len canal, small projects have to wait to be reviewed and decided on which projects to be included in the next investment plan.

The Ho Chi Minh City Department of Construction worked with District 7 and supported this district to implement three projects invested by individuals. If these projects are approved by the municipal People's Committee, the city will have more such projects. Specifically, the proposed pilot projects include the VND21,240 billion Song Tan pond project, VND3,100 billion Ban Don canal project and nearly VND15,000 billion Ong Lon river project.

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