Compensation and resettlement levels for important projects in Hanoi may double

On the afternoon of December 4, Minister of Finance Nguyen Van Thang presented the National Assembly Standing Committee with a draft resolution on specific mechanisms and policies to implement large projects in Hanoi.

According to the draft, large and important projects in the Capital include public investment projects and PPP projects that need to be implemented immediately under the direction of the Politburo, the Secretariat, the Government Party Committee, and the Hanoi City Party Executive Committee.

In addition, this group also has projects that meet national important criteria; Projects using local budget or in the list of attracting strategic investors have a total investment of VND 30,000 billion or more; old apartment renovation project; Handle bottlenecks such as traffic congestion, flooding, and environmental pollution.

The Government proposes that the People’s Council or Chairman of the Hanoi People’s Committee will decide on the policies of these projects, instead of submitting them to the National Assembly or the Prime Minister for approval. To shorten preparation time, some projects in this group (except apartment renovation and projects to handle bottlenecks) can also have contractors and investors selected in special cases.

The drafting agency also proposed that for projects that need to be implemented under the direction (of the Politburo, Secretariat…), the Hanoi People’s Council decides on compensation, support, and resettlement levels twice as high as the regulations. Projects are also subject to planning and construction commencement procedures simultaneously with approval procedures and investment policy decisions.

Examining this content, Chairman of the Finance and Economic Committee Phan Van Mai endorsed the need to issue a resolution according to shortened procedures, contributing to removing institutional bottlenecks, mobilizing resources, and promoting the Capital’s rapid and sustainable development.

However, the Committee requested the Government to review a number of regulations in the draft that are not under the authority of the National Assembly such as selecting investors and contractors; Allows the implementation of projects to renovate, embellish, urban reconstruction or rebuild apartment buildings according to the build and transfer (BT) contract type.

Commenting at the meeting, Deputy State Auditor Tran Minh Khuong said that the proposed level of compensation and resettlement support that is twice the prescribed amount is not strict. According to him, this proposal should be changed to a compensation price close to the market; Support for life stabilization and vocational training is equal to 2 times the prescribed level.

Regarding the shortened procedure, the Deputy State Auditor General said it could cause risks to the quality and safety of the project when starting construction without completing the procedures. Therefore, he suggested that the project needs to have its technical design and construction drawings approved before implementation.

Chairman of the Judicial Law Committee Hoang Thanh Tung requested the drafting agency to carefully review the draft to avoid duplication with the Capital Law (this law currently has regulations on key projects).

In addition, Mr. Tung said the People’s Council can decide on investment policies for projects using city budget capital, according to the Capital Law. However, the draft resolution extends to projects using central capital. Therefore, he is concerned about the feasibility and assurance of capital sources for projects.

Explaining later, the Minister of Finance said he would research to encapsulate the authority to approve investment policies for projects using the city’s budget. Regarding land recovery, according to the Minister, the drafting agency will adjust the direction so that the People’s Council does not decide on the list, but approves each specific project when directed by the competent authorities (Politburo, Secretariat…), implementing according to authorization to ensure strictness.

Chairman of Hanoi People’s Committee Vu Dai Thang said that the city, along with ministries and branches, have carefully reviewed on a practical basis the works and projects facing problems. “This is the wish of the Capital, ministries and branches to resolve, especially with key projects in the near future,” he said.

Therefore, the Chairman of Hanoi hopes that the National Assembly will consider passing a resolution so that the city can promptly implement a number of works and projects, as well as implement capital planning to meet long-term development requirements.