A map of the Ring Road No 4-Hà Nội Capital Region project. —VNA/VNS Photo Trần Việt

HÀ NỘI — According to a recent report, the estimated capital for the Ring Road No 4-Hà Nội Capital Region project will increase by nearly VNĐ2.9 trillion (US$118.9 million) compared to the initial investment. 

In a report submitted by the Ministry of Transport (MoT) to the National Assembly (NA), only one of the four component projects is meeting the schedule, while the other three are running behind. 

According to the government’s Resolution No 106/NQ-CP, construction for the projects must start before June 30 this year. 

The NA document also said that the preliminary total investment of the entire project was estimated at VNĐ85.8 trillion ($3.51 billion). However, after the approval process, this figure is determined at VNĐ84.3 trillion ($3.45 billion). 

Among the component projects, the two concerning compensation and relocation for people in Hưng Yên and Bắc Ninh provinces respectively saw a budget increase of VNĐ1.5 trillion ($61.4 million) and VNĐ2.87 trillion ($118.7 million). 

The reason for these changes is due to residential land clearance compensation, which is calculated based on the market prices. 

After a feasibility report of the component projects is completed and approved, localities will review and determine the exact investment capital as per regulations. 

Hà Nội People’s Committee will oversee the process, compile dossiers and carry out the administrative procedures required before submitting the project funding adjustments to the higher level for approval.

An area of agricultural land recovered for Ring Road No 4 construction in Hoài Đức District, Hà Nội. — VNA/VNS Photo Huy Hùng

Transport minister Nguyễn Văn Thắng said that the disbursement rate for the projects remains slow, with Component project 2.1 (in charge by Hà Nội) at 80.45 per cent of the 2023 budget allocation, Component project 2.2 (in charge by Hưng Yên Province) at 4.76 per cent, and none in Component project 2.3 (in charge by Bắc Ninh Province). 

Land clearance progress has reached 86.5 per cent completion, a majority of which is agricultural land. 

The remaining areas are residential land and those related to religions or belong to various organisations, which are closely linked with people’s livelihoods and business operations, the report said. 

In addition, the clearance process is further delayed due to the unfinished infrastructure for relocation. 

This is why while land clearance has a high completion rate, there is still inconsistency in construction progress, said minister Thắng. 

According to the reports on the actual project implementation, the total land recovered measures at 1,397ha in total, an increase of 56ha compared to the NA Resolution No 56/2022/QH15. 

These include 1,054ha of agricultural land (decreased by 20ha compared to estimates), 42ha of residential land (decreased by 16ha) and 301ha of other land types (increased by 92ha). — VNS

BOX

Seven component projects of the Ring Road No 4-Hà Nội Capital Region Project

Component project 1.1 concerns land clearance compensation and relocation in Hà Nội with the total investment estimated at VNĐ13.37 trillion ($548.4 million).

Component project 1.2 concerns land clearance compensation and relocation in Hưng Yên Province with the total investment estimated at VNĐ3.74 trillion ($153.1 million).

Component project 1.3 concerns land clearance compensation and relocation in Bắc Ninh Province with the total investment estimated at VNĐ2.48 trillion ($101.5 million).

Component project 2.1 is a two-lane road measuring 58.2km with the total investment estimated at VNĐ5.39 trillion ($220.6 million). 

Component project 2.2 is a two-lane road measuring 19.3km with the total investment estimated at VNĐ1.51 trillion ($61.8 million). 

Component project 2.3 is a two-lane road measuring 35.3km with the total investment estimated at VNĐ2.79 trillion ($114.2 million). 

Component project 3 is an expressway implemented under a public-private partnership (PPP) in charge by Hà Nội People’s Committee, measuring 112.8km with the total investment estimated at VNĐ56.54 trillion ($2.3 billion).