HCMC – HCMC has increased the capital for the Xuyen Tam Canal renovation project from VND9.6 trillion to over VND17 trillion, citing rising compensation and land clearance costs.
The city’s People’s Council approved the adjustment at its 18th session on September 27. The new budget for the project now stands at VND17.23 trillion, including VND13.9 trillion for compensation, relocation, and resettlement, and VND2.7 trillion for construction.
The increased budget, which is VND7.56 trillion higher than originally planned, is largely due to additional funds required for compensation and resettlement, which rose by VND7.3 trillion. Construction costs also increased by nearly VND300 billion.
Local authorities cited the implementation of the 2024 Land Law as the main factor driving up compensation and land clearance costs.
The Xuyen Tam Canal project, affecting nearly 159,000 square meters and 1,880 households in Binh Thanh and Go Vap districts, is set to be completed between 2023 and 2028. The project aims to improve drainage, prevent flooding, and enhance traffic connectivity in the area.
In a related move, the People’s Council approved an increase in the budget for the northern section of the Kenh Doi Canal in District 8, raising the total investment from VND4.9 trillion to over VND7.4 trillion due to similar increases in compensation and land clearance costs.
