06:00 | 25/05/2022 Society
(VEN) - The capital city of Hanoi, tasked by the Prime Minister to lead an ambitious beltway project traversing the city and two neighboring provinces, has finalized its budget calculations, paving the way for the start implementation. The National Assembly discussed the proposed budgeting at a session earlier this month.
Project funding structure
The road will be 98 kilometers long - 54 kilometers in Hanoi, 23 kilometers in Hung Yen Province and 21 kilometers in Bac Ninh Province. The belt is expected to ease traffic congestion that has hampered economic development of the capital and its satellite cities. For Hanoi, this is also the road connecting Noi Bai International Airport and a second international airport in the southeast of the capital, regulating the expressway system and reducing the load on ring road 3, which connects five satellite cities in Hanoi’s urban cluster.
|Hanoi’s traffic infrastructure has developed significantly|
To ensure balanced resources, the project will combine public and private funding. The total project budget stands at about US$3.7 billion, including three sub-projects undertaken by investors with a total investment of almost US$1.3 billion. According to Vice Chair of the Hanoi City People’s Committee Duong Duc Tuan, this is a very effective and reasonable investment model that eases the pressure on state and municipal budgets.
The project is divided into three parts: site clearance, a parallel lower urban road project, and a public-private partnership (PPP) and BOT model undertaken by investors. Investment capital for groups 1 and 2 will be assumed by the central and local budgets. The PPP-BOT project is scheduled for completion by 2025.
Tuan said both central and local budget capital sectors now have relatively complete balances of central medium-term public investment for the 2021-2025 period.
Site clearance difficulty
Vice Chair Duong Duc Tuan said the biggest difficulty facing the project is the site clearance to make way for the road.
In addition to the road itself, which will be 125 meters wide, on average, the project must reserve space for a railway development corridor of 30 meters. Currently, the size of site clearance for ring road 4 is 1,341 hectares for all three provinces and cities, accounting for VND19 trillion of the total investment of VND85,813 billion, less than 25 percent.
|Site clearance is the biggest difficulty in implementing the ring project|
Hanoi city alone must plan compensation and resettlement for about 14,647 households and has prepared nine resettlement sites covering about 36.3 hectares.
Once this difficulty is resolved by 2024 as planned, the next component projects such as the lower urban roads will take place until 2026. The PPP-BOT central project will have to be completed in 2025.
After ring road 4 is completed, construction will begin of ring road 5, completing the network of elevated freeways downtown.
At the National Assembly (NA) Standing Committee’s 11th session that took place from May 11 to 20th,
deputies discussed investment policy for ring road 4 construction in the capital region.