Of this figure, compensation costs, resettlement support and infrastructure relocation accounted for more than VND13.9 trillion (US$563 million).
As of September 27 morning, the deputies of the Ho Chi Minh City People's Council voted to approve a draft resolution regarding the adjustment of the investment policy for the project of dredging, environmental improvement, infrastructure construction along Xuyen Tam Canal, a section from Nhieu Loc – Thi Nghe Canal to Vam Thuat River in Go Vap and Binh Thanh districts at its 18th session of the tenth-tenure People's Council of Ho Chi Minh City for the period 2021-2026.
Accordingly, the Ho Chi Minh City People's Council approved the adjustment of the investment policy and the project investment to VND17.2 billion (US$697 million), including more than VND15.4 trillion (US$626 million) of the capital allocation for the period 2021-2025 and more than VND1.7 trillion (US$70.8 million) for the period 2026-2030.
The Ho Chi Minh City People's Council assigned the Municipal People's Committee to report to the Prime Minister for consideration on submitting to the National Assembly at the end-of-year session on the implementation of the project, including issues arising in criteria related to this national-level project.
The Ho Chi Minh City People's Committee is also responsible for ensuring a balance of capital sources to carry out this project as regulated.
During the implementation process, it is essential to ensure the project's consistency and prevent issues related to the environment from arising.
According to the dispatch from the Ho Chi Minh City People's Committee, the project aims to improve the environment and the living conditions of the residents towards the celebration of 50 years of the South Liberation and National Reunification Day (April 30, 1975- 2025) and the 12th Congress of the Ho Chi Minh City Party Committee.
As for the rising capital of up to over VND7.5 trillion (US$306 million), there are more than VND7.3 trillion (nearly US$298 million) for costs of compensation, resettlement support and infrastructure relocation; over VND294 billion (US$11.8 million) for construction costs.
The Ho Chi Minh City People's Committee stated that the localities applied the 2024 Land Law, which took effect on August 1 along with Government Decree No. 88/2024, resulting in increased costs for compensation, site clearance and resettlement support. That leads to a significant rise in the project's total investment capital.
At the meeting, the Ho Chi Minh City People's Council also approved the draft resolution to adjust the investment policy for the dredging, infrastructure construction and environmental improvement project of the northern side of Doi Canal in District 8.
Accordingly, the total investment capital for this project was adjusted with an increase from over VND4.9 trillion (US$199 million) to over VND7.4 trillion (US$301 million).
Additionally, the Ho Chi Minh City People's Council also approved the investment policy for 16 other projects.
