Lack of housing delays site clearance

A project building Ring Road 1 on Ha Noi's Nguyen Khoai Street was delayed due to trouble clearing sites. — VNA/VNS Photo Huy Hung

HA NOI (Biz Hub) — Many of 13 key infrastructure projects in Ha Noi given priority because of their significant socio-economic impacts, have been delayed because of trouble in clearing sites.

This, in turn, has been caused by a lack of resettlement homes to place dislocated residents. Of the 13 projects, six relate to transport. (see Box at end of story).

A key transport project, the building of a section of Ring Road 2 from Section Nga Tu So-Nga Tu Vong, involves the removal of 553 houses.

So far, 236 families have been provided with resettlement apartments. Another 150 are expected to be given keys to their new homes by September. This means 167 will have to wait until more apartments are built.

Meanwhile, in a project to build a section of Ring Road 1 from O Dong Mac to Nguyen Khoai by last December, abut 215 households and six Government agencies awaiting eviction still have not been paid compensation totalling VND380 billion (US$17.6 million).

Nhan Dan newspaper spoke to the chairman of Ha Noi People's Committee Nguyen The Thao who said it was imperative that the problems with resettlement housing be resolved.

He said instead of arranging replacement housing for those evicted, projects could give them money to buy their own homes.

In practice, if the value of the property from which a family is evicted is equivalent to that of a resettlement apartment, they will be given a new one free. If their property is of more value, they will get an apartment plus some cash. If it is less, they are expected to pay additional money for the apartment.

The online newspaper Vnexpress quoted an official from the city's Department of Planning and Investment as saying that the city's coffers were too low.

While key infrastructure projects needed a total VND6,800 billion ($314 million) for site clearance, the city's budget could provide only VND2,800 ($129 million).

To fill the shortfall, the city is expected to issue Capital Building bonds this year worth VND4,000 billion ($185 million). The first issue is scheduled for the second quarter of this year totalling VND2,000 billion ($92.6 million), the official said. — VNS

Thirteen key infrastructure projects are being undertaken in Ha Noi this year. They are:

1. Ring Road 1 section from O Dong Mac-Nguyen Khoai

2. Extended Highway 5

3. Ring Road 2 section from Nga Tu So-Nga Tu Vong

4. Intersection Bac Thang Long-Van Tri

5. Intersection in central Long Bien District

6. Project on inner Ha Noi transport development

7. Ha Noi water drainage project, phase II

8. Expanded complex for waste treatment of Soc Son

9. Building and Upgrading of Duc Giang Hospital

10. Building the Centre for Research, Transfer and Testing of Technology under the Hoang Thanh Thang Long (Ha Noi's Old Citadel) project

11. Building technical infrastructure and landscape for archeological site at No. 1 Hoang Dieu Street