According to the HCM City Urban Infrastructure Construction Investment Project Management Board (investor), the main reason why the project has not been able to start construction is because the localities have not fully handed over the land.
The Xuyen Tam Canal renovation project had an initial total investment of more than VND9,600 billion, which was later adjusted to increase to more than VND17,000 billion. Of which, the increase was mainly for site clearance, from nearly VND6,600 billion to nearly VND14,000 billion due to the application of new compensation prices according to the 2024 Land Law.
The project is divided into three construction packages. Package XL-03 (from Luong Ngoc Quyen Street to Vam Thuat River) is located in Go Vap District, with a total investment of about 597 billion VND. This package was expected to start construction first in November 2024 but has not been able to be implemented yet.
Two other packages are located in Binh Thanh district, including: Section from Nhieu Loc - Thi Nghe canal to Bui Dinh Tuy bridge (package XL-01); section from Bui Dinh Tuy bridge to Luong Ngoc Quyen street (package XL-02), including branches of Binh Loi canal, Binh Trieu Cau Son. These two packages are expected to start construction before April 30, 2025.
In Go Vap district, the project requires the recovery of 2.5 hectares of land with 138 affected cases (40 households are cleared), so far only 35 cases have been handed over. It is expected that the land clearance work will not be completed until the first quarter of 2025.
The situation in Binh Thanh district is not better when 17.3 hectares of land need to be recovered, affecting 2,077 cases (1,230 households and 23 organizations were completely cleared).
To date, Binh Thanh District has yet to issue a compensation, support and resettlement plan. While according to the previous plan, Binh Thanh District would begin paying compensation in December 2024, along with the land acquisition decision.
In 2024, the Xuyen Tam Canal renovation project was allocated more than VND9,500 billion, of which nearly VND9,300 billion was for compensation and site clearance in Binh Thanh and Go Vap districts. However, delays in this work make it difficult for the capital to be fully disbursed this year.
Xuyen Tam Canal is nearly 9 km long, flowing through Binh Thanh and Go Vap districts, and is considered the most polluted canal in Ho Chi Minh City. The main canal is 6.7 km long from Nhieu Loc - Thi Nghe canal to Vam Thuat river and three branches are more than 2.2 km long (Son bridge, Binh Trieu, Binh Loi).
The Xuyen Tam canal renovation project includes dredging the canal bed to a depth of 3.5 m and widening the canal bed from 20 to 30 m. A wastewater and rainwater collection system will be built synchronously, helping to improve environmental quality and prevent pollution.
On both sides of the canal, a 6-meter wide road will be built with two lanes on each side, along with 3-4 meter wide sidewalks and a system of parks and trees.
A complete lighting system is also installed to contribute to urban beautification and create a clean, green living space for people.
