HCMC – Work on the VND17-trillion Xuyen Tam Canal rehabilitation project, one of the most polluted canals in HCMC, is set to begin in April this year.
Nguyen Hoang Anh Dung, deputy director of the Urban Infrastructure Construction Investment Projects Management Unit under the HCMC People’s Committee, provided an update on the project at a socio-economic meeting on February 27.
The project’s initial budget of over VND9.6 trillion later increased to over VND17 trillion, primarily due to rising compensation and site clearance costs, he said.
The compensation budget alone surged from nearly VND6.6 trillion to nearly VND14 trillion, following the implementation of new compensation rates under the 2024 Land Law.
Despite having a clear construction plan, site clearance remains a challenge. In Go Vap District, 2.5 hectares of land must be acquired, affecting 138 households, of which 40 require full relocation. So far, only 35 out of 138 cases have been resolved, with the remaining cases needing completion by April to keep the project on schedule.
In Binh Thanh District, 17.3 hectares of land must be cleared, impacting 2,077 cases, including 1,230 households and 23 organizations that require full clearance. Over 400 cases are still awaiting compensation, support, and resettlement.
The project is divided into three construction packages: XL-01, XL-02, and XL-03. The first to break ground in April will be package XL-03, which covers 1,300 meters through Ward 5 in Go Vap District and Ward 13 in Binh Thanh District.
For package XL-03, Go Vap District has handed over 800 meters, accounting for 61.54% of the required area, while Binh Thanh District has handed over 1,140 meters, reaching 87.69%.
Local authorities are working to complete the remaining site clearance to ensure a timely handover to the investor and keep the project on schedule.
By the end of March or early April, Go Vap and Binh Thanh districts are expected to complete the site handover, ensuring that construction on package XL-03 begins before April 30.
The remaining two packages, XL-01 and XL-02, are in the final stages of compensation payments and site handover procedures. The handover process is set to begin in July, be completed in August, and construction is expected to start before September 2.
Expected to be completed by 2028, the project will not only improve the environment and mitigate flooding but also promote economic and social development in the area.
