HCMC calls on investors to six urban planning projects

HCMC People’s Committee yesterday organized a conference calling on investors to implement six urban planning projects to remove 6,223 canal houses with total capital expected to reach VND19,024 billion (US$838 million).
HCMC Party Chief Nguyen Thien Nhan (L) at the conference (Photo: SGGP)
HCMC Party Chief Nguyen Thien Nhan (L) at the conference (Photo: SGGP)
The conference was attended by HCMC Party Committee Secretary Nguyen Thien Nhan, People’s Council Chairwoman Nguyen Thi Quyet Tam, agency leaders and investors.
Reporting at the conference, director of the Department of Construction Tran Trong Tuan said that the city now calls for investment in the six urban planning projects under public private partnership (PPP) model. Besides removing canal houses, these projects will expand site clearance boundary and create land fund for investors.
Implementation will comply with the law. The city will study to set up detailed plans, invite investors to propose specific projects and submit them to competent authorities for approval. Afterwards, the city will put the projects out to tenders.
Director of the Department of Planning and Investment Su Ngoc Anh proposed HCMC to review and suitably adjust plans for investors to participate in projects, synchronously develop infrastructure structure of existing and new urban areas and establish a body on HCMC urban planning.
Mr. Nguyen Dang Truong, head of Bidding Management Department under the Ministry of Planning and Investment, said that the Government has assigned the ministry to amend Decree 15 on construction work quality management and Decree 30 detailing the Bidding Law. Amended Decree 15 issue is expected this month.
Build-Transfer (BT) investment method will see lot of changes. For instance, the Prime Minister will decide investment policy of Group A projects, the remaining ones will come within the jurisdiction of municipal People’s Committee and People’s Council. Procedures to decide investment policies will be much simpler than public investment regulations.
The decrees will supplement payment methods for investors in BT contracts besides using land fund as before.
Notably, investment certificates will be abolished because contracts signed between investors and authorized agencies have the highest legal value. They are the behavior basis for the two sides during project implementation process.
Changing way of doing, not removing residents
Stating at the conference, secretary of HCMC Party Committee Nguyen Thien Nhan said that three months ago, the city hosted a conference calling for investment in garbage treatment. At the event, investors introduced their technologies and showed determination to attend in making garbage electricity.
If the projects are implemented this year, the city’s pressure on garbage treatment will much reduce.
On that spirit, Mr. Nhan said that the conference yesterday was very meaningful. Vietnam has been under the pressure of quick population increase.
For the last 20 years, population hikes an extra of one million every 5.5 years but the city has had no plan about where these people will be taken to. The Department of Planning and Investment and the Department of Planning and Architecture must take the initiative in anticipating accommodation, travel, schools and hospitals for the population increase in the next five years and 20 years.
In six projects which the city is calling for investment, radial canal project has had investors. In the upcoming time when the Government issue new decrees to replace old ones, the city will have specific requirements and financial mechanisms to invite investors. It will strive to find investors for four out of five projects this year.
Mr. Nhan required HCMC People’s Committee to have a training program for planning cadres of Departments of Planning and Architecture, Construction and Transport.
Aside from Japan’s experience of not removing residents but improving existing urban areas toward more efficient land use and higher land value, the city can invite South Korean experts to get more advices, he added.
Mr. Nhan required to organize the cadre training by the third quarter this year. Afterwards the city should hire firms to consult the city on synchronously improving one or two districts and not remove residents.
He prompted HCMC People’s Committee to continue getting opinions to build the projects under PPP models and report to the standing board of HCMC Party Committee.

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