Why did the Xuyen Tam canal project increase capital by more than 7,500 billion VND?

On July 27, at the 18th session of the 10th term Ho Chi Minh City People's Council, delegates voted to approve the draft resolution on adjusting the investment policy of the project of dredging, improving the environment, and building infrastructure of Xuyen Tam canal (from Nhieu Loc - Thi Nghe canal to Vam Thuat river) in Go Vap and Binh Thanh districts.

Temporary houses along Xuyen Tam canal. Photo: My Quynh.

Specifically, the Ho Chi Minh City People's Council approved the adjustment of the project investment policy, adjusting the total investment to increase by more than VND 7,500 billion (from more than VND 9,664 billion to more than VND 17,229 billion).

This investment level includes: Compensation costs, resettlement support, technical infrastructure relocation (over 13,937 billion); construction costs (over 2,729 billion); project management costs (nearly 48 billion); construction investment consulting costs (nearly 110 billion); other costs (over 25.5 billion VND) and contingency costs of over 380 billion VND.

The Ho Chi Minh City People's Council also adjusted the expected capital allocation demand for the project, for the 2021-2025 period, it is more than VND 15,476 billion; for the 2026-2030 period, it is more than VND 1,753 billion.

The Ho Chi Minh City People's Committee is assigned the responsibility of reporting to the Prime Minister for consideration and reporting to the National Assembly at the year-end session on the project implementation status.

Rach Xuyen Tam has increased capital due to increased costs of compensation, site clearance, and resettlement support. Photo: My Quynh.

At the same time, be responsible for ensuring capital sources and the ability to balance capital to implement the project according to regulations. The project implementation process also needs to ensure synchronization, not causing impacts on the surrounding environment.

Previously, the Ho Chi Minh City People's Committee proposed to increase capital for the project due to increased costs of compensation, site clearance, and resettlement support when applying the 2024 Land Law and some other additional costs.

Also at this meeting, the City People's Council approved increasing capital for the dredging project, building infrastructure, and improving the environment of the north bank of the Doi Canal.

Accordingly, this project was approved to increase by about 2,500 billion VND, from 4,900 billion VND to 7,415 billion VND . This capital increase is due to increased compensation, support and resettlement costs.

In addition, the Ho Chi Minh City People's Council also approved the investment policy for the project to dredge and solidify the embankment of Da Han canal (from the iron bridge to National Highway 1A), District 12 with 700 billion VND and the project to dredge and solidify the embankment of Lang Le canal, District 12 with 129.7 billion VND .

Source: https://www.baogiaothong.vn/vi-sao-du-an-rach-xuyen-tam-duoc-tang-von-hon-7500-ty-dong-192240927130554112.htm