The Thủ Thiêm Peninsula in HCM City’s District 2. The People’s Council has approved additional compensation for affected residents in the Thủ Thiêm new urban area. — VNA/VNS Photo Mạnh Linh

HCM CITY — The HCM City People’s Council has approved additional compensation for residents involved in the Thủ Thiêm land dispute.

The new decision affects 331 households in the 4.3ha area located outside the Thủ Thiêm new urban area project’s planning boundary.

The city illegally took their land, according to the conclusion made by the Government Inspectorate in September last year. 

Speaking at the 9th HCM City People’s Council extraordinary meeting on Sunday, Võ Văn Hoan, vice chairman of the People’s Committee, said under the proposed policy, the city would provide additional compensation. It reached a new figure after carefully studying the value of the land at current market value to ensure the highest benefits for the residents. 

The residents will have three options of receiving compensation: cash, land lots or resettlement accommodation.

Hoan recommended that residents receive land lots or resettlement houses, which they could later sell at market prices.

The residents will receive land in another area in exchange for their land in the planned 4.3ha area. 

The city will base the price of land according to the state price frame and with consideration of the prices of surrounding projects, Hoan said.  

For example, one square metre of a land lot on Trần Não Street (in a 4.3ha area) will be eligible for 1.3sq.m on Lương Định Của Street; or 1.7sq.m on Road No 4 (22m wide) and Road A (24m wide); or 2.2sq.m on private roads (8m wide) in Bình Khánh Ward.

The farther the land is from the centre of District 2, the bigger the area the resident will receive as an exchange.

Nguyễn Thị Lệ, chairwoman of the city People’s Council, said the approval of this policy would provide necessary guidance for the People’s Committee to take further steps to ensure the residents’ legitimate rights and interests.

Of the 331 households in the 4.3ha area in Quarter 1 in Bình An Ward, the city government was only able to contact 308 households (23 households were invited but did not show up or could not be contacted), according to the city government.

Only 172 households (55.8 per cent) agreed with the proposed policy; and 108 households (35 per cent) basically agreed with the proposed policy but suggested reviewing and clarifying some content in the policy. 

Nguyễn Thiện Nhân, secretary of the HCM City Party Committee, said: “The compensation policy was reviewed and discussed carefully and extensively before being approved by the People’s Council.” 

Nhân also promised the city would continue to take further steps to ensure a satisfactory solution for all the affected residents.

According to the Government Inspectorate, the Thủ Thiêm master plan had a number of violations on the part of the city government and agencies, causing longstanding complaints from the residents.

The Thủ Thiêm new urban area covers 657ha with nearly 30 per cent of land lots being developed for commercial purposes. Others are for public services including a central square, riverside park and children’s palace.

According to the local media, 99.97 per cent of the affected local households have so far received compensation. The total compensation is estimated at nearly VNĐ17.5 trillion.

Covering a total area of 657ha, the Thủ Thiêm new urban area is located on Thủ Thiêm peninsula in HCM City’s District 2, which faces downtown District 1 across the Sài Gòn River.

Approved by the Government in 1996, the proposed financial district and mixed-use urban area of HCM City was expected to become the largest inner-city development in Southeast Asia.

To develop such a project, it has taken more than 10 years to complete site clearance of most of Thủ Thiêm peninsula, with nearly 15,000 households already resettled. More than 99 per cent of land in the proposed area has been cleared. — VNS