Ho Chi Minh City still has more than 30,000 billion VND in land clearance capital that has not been disbursed.

By the end of July 2024, Ho Chi Minh City had disbursed VND 2,440 billion in land clearance capital, the remaining VND 30,234 billion had not been disbursed due to the impact of the new Land Law, so adjustments had to be made.

The Department of Planning and Investment has just reported to the Ho Chi Minh City People's Committee on the results of public investment disbursement in the first 7 months of the year and solutions to disburse in the remaining months of 2024.

Xuyen Tam canal renovation project increases land clearance capital by 7,600 billion VND - Photo: Trong Tin

According to the report, as of August 2, 2024, the total disbursed public investment capital of the City was 12,064 billion VND, reaching 15.2% of the total public investment capital assigned by the Prime Minister in 2024, which is 79,263 billion VND.

This year, Ho Chi Minh City allocated 32,674 billion VND for site clearance, but by the end of July, only 2,440 billion VND had been disbursed. The remaining 30,234 billion VND had not been disbursed due to the change in the Land Law and its earlier effect.

Therefore, from August 1, State management agencies must supplement compensation regulations according to the new Land Law to add a number of new policies that are more beneficial to the people to facilitate the site clearance process.

Therefore, the procedures for compensation and site clearance are slow, leading to slow disbursement of public investment capital.

Many projects that had previously had their total investment approved, when implementing and applying the provisions of the new Land Law from August 1, the total investment increased due to increased compensation capital for site clearance.

A typical example is the Project to dredge and improve the environment for infrastructure construction of Xuyen Tam canal (from Nhieu Loc Thi Nghe canal to Vam Thuat river). When applying the new Land Law regulations, the total estimated cost of compensation and site clearance is up to 12,978 billion VND (an increase of 7,600 billion VND compared to the previously approved cost).

The next project with increased capital for site clearance is the Project of Dredging, Infrastructure Construction, and Environmental Improvement of the North Bank of Doi Canal (District 8), with site clearance capital of up to VND 5,100 billion (an increase of VND 2,400 billion compared to the previously approved cost).

In addition, Ho Chi Minh City has a number of projects with very large land clearance capital such as: Ring Road 2 project (section from Phu Huu bridge to Vo Nguyen Giap street) is 6,600 billion VND; section from Vo Nguyen Giap street to Pham Van Dong street is 1,800 billion VND.

To disburse the remaining capital of more than VND 30,000 billion, the Department of Planning and Investment proposed that the Ho Chi Minh City People's Committee assign specialized departments to coordinate with investors and localities to prepare documents to propose adjustments to the investment policy for the People's Committee to submit to the City People's Council at the thematic session in September 2024.

Source: https://baodautu.vn/tphcm-con-hon-30000-ty-dong-von-giai-phong-mat-bang-chua-giai-ngan-duoc-d222833.html