In 2018, the city administration plans to put forward some targets for urban renewal aiming to improve residents’ living condition.
At present, the city estimates to allocate VND22,381 billion ($983,891,400) from state budget for removal and resettlement people living in slum along canals. Last year, the city cleared 502 dilapidated houses along canals in eight projects.
People’s Committee has prepared VND9.35 billion for 13 projects for sociology, measurement, surveys carried out by district administrations and called for social contributions for some large scale projects.
Deputy Chairman of People’s Committee Tran Vinh Tuyen said there have been a few hiccups along the urban renewal mission; fund shortage is the current biggest problem.
Before, canal house removal program was performed by taking from the state budget, financial aids, the International Development Association (IDA) from World Bank...
However, at present, the city’s must carry out some its breakthrough projects at same time and the allocation for HCMC is cut; therefore, infrastructure expenditure in next time will reduce.
Moreover, WB stopped IDA in July, 2017 for Vietnam. The Southeast Asian must ask for preferential loans as per market condition meanwhile IDA has increased interest by 2 percent – 3.5 percent.
In such context, social contributions for infrastructure projects and canal house removal program are becoming urgent more.
To achieve its set target, HCMC advocates to call for social contributions for urban renewal projects to help reducing state budget.
For its financial feasibility, HCMC leaders must have plan for compensation work.
Currently, HCMC runs 73 projects; it needs VND200 trillion to pay for investors. For past years, many investors took part in the housing projects combining with urban renewal changing the city’s face initially.
The empty lands after removal will be for building condominiums and commercial centers and destinations for waterway trips. This paved the way for urban renewal completion and development of waterway tourism.
The city has to remove and resettle 20,000 households along canals for the period 2016-2020 while fund for resettlement is not enough for the mission.
There are many opinions that in addition to completing legal grounds, there should have special policies to attract investors’ attention.
Director of the Department of Construction Tran Trong Tuan said to maintain project’s pace, in next time, there will be special urban renewal plan for each district. The plan will verify progress and target for removing houses, repairing and updating old condominiums.
Additionally, plans for developing land for building social housing program in each district will be outlined.
One of largest projects which the city is calling for social contribution is urban renewal in the south of Doi canal. The 75.05 hectare project will remove 5,055 houses and compensation is expected to reach VND12,800 billion.