Proposal to increase 55 billion VND for the Ham Nghi extended road project for site clearance

TRẦN TUẤN |

Ha Tinh - The investor has just proposed to adjust the total investment of the Ham Nghi extended road project with an additional increase of 55 billion VND.

On April 9, in an exchange with a reporter from Lao Dong Newspaper, Mr. Le Viet Hoa - Deputy Director of the Project Management Board for Investment in Construction of Transport Works and Urban Development of Ha Tinh said that the unit has sent a document to the Provincial People's Committee requesting to adjust the total investment of the Ham Nghi extended road project.

According to Mr. Hoa, previously, the Ha Tinh Provincial Land Fund Development Center, the investor of the Ham Nghi extended road site clearance sub-project, proposed to adjust and allocate more than 69 billion VND to complete compensation and site clearance (GPMB). However, after the Board reviewed, saving other costs, it only proposed to adjust to increase by 55 billion VND.

Previously, the Ha Tinh Provincial Land Fund Development Center reported that, according to Decision No. 980 dated May 8, 2025 of the Provincial People's Committee, the approved site clearance compensation cost for the project is 259 billion VND.

In which, the compensation cost for site clearance for the road section is 188.1 billion VND, and the investment cost for building the resettlement area is 70.9 billion VND.

Up to now, the disbursed compensation fund is more than 257.2 billion VND. Based on the prepared compensation, support, and resettlement plan, the cost estimate for relocating technical infrastructure works and building resettlement areas, the estimated capital demand to complete site clearance for the remaining volume is 71.447 billion VND.

In which, the compensation cost for site clearance of the road section is more than 47.8 billion VND, and the construction cost of the resettlement area is more than 23.5 billion VND.

The total site clearance compensation cost of the project will be 328.662 billion VND, an increase of 69.662 billion VND compared to the approved cost. Of which, the site clearance compensation cost for the road section increased by 64.805 billion VND, and the site clearance cost for the resettlement area increased by 4.857 billion VND," according to the Ha Tinh Provincial Land Fund Development Center.

The reason for the increase in site clearance costs stated by the Ha Tinh Provincial Land Fund Development Center is that the site clearance cost estimate approved in decision No. 980 dated May 8, 2025 is inherited to maintain the calculated data approved in decision No. 2051 dated August 30, 2023.

The implementation process has many changes in land prices as well as legal policies leading to increased costs.

Regarding the implementation time, it is prolonged compared to the 18-month plan due to waiting for the determination of the agency approving the resettlement area construction investment project. During this time, market land prices in the province as well as the project area have increased, leading to increased compensation land prices compared to the estimate at the time of estimation in 2023, increasing by an average of about 4 million VND/m2.

Compensation and support costs for agricultural land for the construction of 2 resettlement areas increased.

On that basis, the Ha Tinh Provincial Land Fund Development Center proposed to continue to allocate 69.662 billion VND to complete the compensation and site clearance work of the project.

As Lao Dong Newspaper has reported, the Ham Nghi extended road project has a length of 3.3 km with the starting point connecting National Highway 1 bypass through Thach Dai commune (now Ha Huy Tap ward), the ending point connecting to the branch of National Highway 8C through Thach Xuan commune. The project is invested by the Provincial Traffic Construction and Urban Development Investment Project Management Board with a total capital of 575 billion VND. The Provincial Land Fund Development Center is the investor of the sub-project of compensation, support and infrastructure construction of the resettlement area.

Initially, the Ham Nghi extended road project was scheduled to be completed in 2024, but then due to site clearance delays, it was extended to December 31, 2026.

TRẦN TUẤN
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