HCM CITY — Đinh La Thăng, the secretary of the HCM City Party Committee, said the city must formulate a detailed plan this month to speed up the upgrading of old residences.

Projects to upgrade old residential quarters in HCM City often encounter obstacles due to lack of agreement between local residents, investors and local authorities.

Trần Trọng Tuấn, the director of the HCM City Department of Construction, said some residents demand high compensation to move out of their existing homes to make room for new buildings.

Local authorities also need more determination. For example, the District 1 People’s Committee intended to move residents from the Cô Giang Residential Quarter in 2005, but the committee was afraid some residents were not satisfied and the move has not been completed yet, said Tuấn.

Red tape is another problem. It takes at least two years to complete administrative procedures, not to mention obstacles in clearing the ground, according to Tuấn.

Phạm Ngọc Lâm, the chief executive officer of the Đức Khải Corporation which partnered in the renovation of six old residential quarters, said residents are reluctant to move for fear of losing their housing. Meanwhile, new residential project management boards are afraid local authorities may not support the projects. This results in delays and cost overruns.

“Because of the shortage of belief between residents, enterprises and state authorities, enterprises are not interested in upgrading old residential quarters. Profits are low but risks are high,” said Lâm.

This month, the city will assign local authorities to approve and inspect projects and will select investors to speed up progress, Tuấn said. He also committed to shorten and simplify administrative procedures for investors. — VNS