Construction of a major flood-prevention project in HCM City will now last 24 months instead of 36 months as previously approved by the city People’s Committee. — Photo cand.com.vn

HCM CITY — Construction of a major flood-prevention project in HCM City will now last 24 months instead of 36 months as previously approved by the city People’s Committee.

Nguyễn Tâm Tiến, general director of Trung Nam Investment, Construction Joint-Stock Co, said that the project would affect the living standards of residents in districts 1, 4, 7, 8, Nhà Bè and Bình Chánh.

The project is expected to control flooding and the effects of climate change in the downtown area of 570 sq km, where 6.5 million people live, according to HCM City’s Steering Centre of the Urban Flood Control Programme (SCFC).

Tiến said the construction firm, Trung Nam Group, would work with authorities to settle compensation for site clearance and resettlement of households affected by the project.

Trung Nam is expected to complete the project within three years under a build-transfer (BT) contract.

The developer will handle construction work at its own expense in exchange for land rights in the city for other projects.

With charter capital of VND2 trillion, Trung Nam will take out loans from BIDV to fund the project, according to Vietnam News Agency, which cited an agreement signed by the HCM City authority and Trung Nam Group last Friday (June 3).

Under the contract, HCM City People’s Committee will pay the Trung Nam Group 16 per cent of the project’s value in land and 84 per cent in cash.

The project will use ODA (official development assistance) loans from the World Bank’s International Bank for Reconstruction and Development and available funds from the city’s budget, the SCFC said.

Under the project, six culverts with a width of 40-160 metres and an embankment of nearly 7.8-kilometres will be built on and along the Sài Gòn River.

Three pumping stations with a capacity of 12-48 cubic metres per second and 25 small drains will also be built, according to figures from the city’s authority. 

Sluices and tidal control water locks will be installed on the Nước Lên Canal and Vàm Thuật River.

In addition, 32.7 kilometres of dams will be built in Tham Lương, Bến Cát, and Nước Lên Canals, along with nine kilometres of drainage systems in Gò Vấp District.

Water channels in Tân Bình and Go Vấp Districts will also be upgraded.

The project requires total investment of VNĐ9.57 trillion (US$429 million), with VNĐ8.761 trillion ($392.7 million) coming from ODA and the rest from the city’s budget, according to SCFC.  

Tiến said construction would not affect land transport, but would have some impact, although insignificant, on waterway transport in some river sections.

At a recent meeting, HCM City authorities  announced that it would earmark more than VND156 trillion ($6.85 billion) for anti-flooding projects over the next five years. — VNS.