Overall master plan for Hoàn Kiếm Lake. — VNA/VNS Photo

HÀ NỘI — Hà Nội has proposed a major transformation of the area around Hoàn Kiếm Lake, with preliminary investment estimated at over VNĐ22.2 trillion (over US$860 million), including plans for a four-level underground shopping complex.

The project is expected to be completed by 2029, according to a proposal submitted by the Hà Nội People's Committee on Tuesday.

The plan aims to create a large public square linking Hoàn Kiếm Lake with August Revolution Square, the Hà Nội Opera House and the Việt Nam National Museum of History.

It also calls for expanding public spaces in the city centre, reorganising traffic and developing underground facilities.

The project will be implemented in three phases.

The first phase will cover land clearance across an area of about 30.82 hectares, at an estimated cost of more than VNĐ9.9 trillion($383 million). The municipal budget will cover the full cost of this component.

The second phase involves building a four-level underground shopping complex beneath park and public square areas to the north and east of the lake. The project is valued at over VNĐ4.6 trillion, with Capital Sun Real Estate Joint Stock Company named as the investor.

The third phase includes building a new headquarters for the Hà Nội People's Committee, renovating the People's Council headquarters and upgrading the landscape around the lake's southeastern side. The component is estimated to cost more than VNĐ7.69 trillion and will also be carried out by Capital Sun Real Estate.

To compensate the investors, the city plans to allocate six plots of prime land covering a combined 7.31 hectares, with a preliminary estimated value of over VNĐ4.87 trillion.

The proposed sites are located on Tràng Tiền Street, on both sides of the central post office, along Tăng Bạt Hổ, Lê Thánh Tông and Hai Bà Trưng streets, and in Đông Anh.

All components of the redevelopment are scheduled for completion by 2029. — VNS