This content is stated in the report on the disbursement of compensation, support and resettlement capital (referred to as compensation) of the Department of Natural Resources and Environment of Ho Chi Minh City recently sent to the Standing Committee of the City Party Committee and the People's Committee of Ho Chi Minh City.
ACTUAL EXPENDITURE IS LESS THAN 50% OF ESTIMATED CAPITAL
The Department of Natural Resources and Environment said that at the time of reporting the pre-feasibility study of the Ho Chi Minh City Ring Road 3 project, 4 localities (Thu Duc City, Cu Chi, Hoc Mon, Binh Chanh) realized that the capital source needed to be fully allocated to avoid a shortage of funds leading to having to report to the National Assembly to adjust the total investment. From there, the localities estimated the compensation costs based on the following principles: based on the map boundary provided by the investor (HCM City Traffic Construction Investment Project Management Board) overlapping the current boundary of Google maps, the locations with houses on Google maps are expected to be residential land and calculated to meet the prescribed limit (from 200 m2 to 300 m2 ).
People in Thu Duc City complete procedures to receive compensation in May 2023
The compensation price is also estimated according to the highest level in the land price adjustment coefficient framework. For example, in Binh Chanh District, the land price adjustment coefficient framework for residential land is from 6 - 22 and agricultural land is from 15 - 38, so the People's Committee of Binh Chanh District chooses coefficient 22 for residential land and coefficient 38 for agricultural land. In Thu Duc City, agricultural land is only calculated according to the unit price of land for perennial crops without classifying land for annual and perennial crops.
Similarly, for constructions, architectural works and training, career conversion and job search support, all are estimated at the highest level. In addition, land areas directly managed by the state according to regulations are not compensated, but when calculating, this area is also calculated as a case of compensation. Therefore, the estimated compensation cost is very high, up to more than 25,600 billion VND.
At the time of approving the compensation project, the compensation unit price is updated in the feasibility study report. In December 2022, the Ho Chi Minh City People's Committee approved the compensation project with a total cost of VND 18,906 billion. According to the Department of Natural Resources and Environment, at this time, people have not provided complete legal documents, so the compensation cost is still higher than the actual cost. When localities review the legal documents provided by people and deduct the land fund directly managed by the state, the capital source will decrease significantly.
Specifically, Thu Duc City needs 6,225 billion VND, Cu Chi District needs 1,718 billion VND, Hoc Mon District needs 1,614 billion VND and Binh Chanh District needs 1,687 billion VND. In addition, the total cost of technical infrastructure relocation, resettlement area infrastructure construction and other costs is 453 billion VND. Thus, the total compensation funding demand of the 4 localities only needs 11,688 billion VND, a decrease of 7,206 billion VND compared to the decision at the end of 2022, and a decrease of more than 50% compared to the pre-feasibility study estimate.
TRANSFER CAPITAL TO GOOD ABSORPTION PROJECTS
Ring Road 3 is not the only project with excess capital in Ho Chi Minh City. According to a survey by the Department of Natural Resources and Environment, the list of projects with excess capital also includes Duong Quang Ham Street (Go Vap District) with a decrease of 225 billion VND, D8 Street (section from Bui Minh Truc to Ta Quang Buu, District 8) with a decrease of 50 billion VND, Dam Sen Ring Road (District 11) with a decrease of 40 billion VND, Ong Nhieu Bridge (Thu Duc City) with a decrease of 195 billion VND, Tang Long Bridge (Thu Duc City) with a decrease of 147 billion VND due to surplus budget and no longer in use. On the contrary, some projects in Thu Duc City have increased compensation capital such as My Thuy intersection with an increase of 366 billion VND, La Xuan Oai Street (section from Lo Lu Street to Nguyen Duy Trinh Street) with an increase of 260 billion VND...
Mr. Do Anh Khang, Vice Chairman of Go Vap District People's Committee, said that the story of capital surplus and capital shortage is a common situation of compensation projects. For example, the Duong Quang Ham road project (section from Binh Thanh District to Go Vap District Cultural Park), the approved decision was 1,750 billion VND, but when it came to actual payment, Go Vap District calculated that it only needed 1,525 billion VND.
The reason, according to Mr. Khang, is that at the time of the estimate, the locality did not have enough legal basis to require people to provide documents, papers as well as measure the current status, so it often assessed the legal status to be compensated the highest. However, when compensating for each specific case, many records did not meet or only partially met the regulations.
Specifically, some cases were granted certificates of land use rights and house ownership, but after legal review, some cases had to have their certificates revoked because they were not granted in accordance with regulations. These cases were initially expected to be compensated, but later changed to only receiving support for residential land or compensation according to the unit price of agricultural land.
In addition, cases of land and houses with military origin that are partly encroached are not eligible for compensation and are only supported. Cases of encroachment on public land are also only supported for land, not compensation, or land encroached and built after July 1, 2004 are also not compensated, not supported for land and construction structure...
Presenting a solution to handle the remaining 225 billion VND in compensation capital in the Duong Quang Ham road project, Mr. Khang said that Go Vap District proposed that Ho Chi Minh City transfer it to the Xuyen Tam canal renovation project passing through the area to speed up the disbursement progress. At a recent meeting on public investment, Chairman of Ho Chi Minh City People's Committee Phan Van Mai requested investors and localities to urgently propose to the Department of Planning and Investment to transfer the capital expected to be not fully disbursed to projects with good absorption to increase the overall disbursement rate throughout the city.
Mobilize people to provide documents and measure in advance
Proposing solutions to overcome the situation of capital shortage and excess compensation capital, the Department of Natural Resources and Environment of Ho Chi Minh City said that investors need to coordinate with localities to fully assess and accurately determine the scope and boundaries of the project during the pre-feasibility study. The consulting unit closely coordinates with localities to refer to the unit price of the project being implemented, similar locations with the most recent approved prices, and calculate the "price slippage" factor to estimate the compensation cost.
The survey of the current status of the project boundary needs to be compared with the cadastral map according to the VN 2000 coordinate system to determine the cases of houses built before July 2004 as the initial basis for compensation or support. For land areas directly managed by the state, it is necessary to carefully review to reduce the estimated compensation cost. After the investment policy is approved, the project approval process must be accelerated to avoid the case where land prices increase, which will increase compensation costs.
In addition, localities need to mobilize people to agree to measure, count and provide legal documents before issuing land recovery notices to be able to accurately determine the affected area and land law as a basis for calculating compensation costs before approving the project.
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