Recently, Lê Ngọc Quang, a member of the Party Central Committee and Secretary of the Da Nang City Party Committee, chaired a meeting of the Steering Committee for Land Clearance (LC) for the North-South High-Speed Railway Project in Da Nang.
The North-South High-Speed Railway Project spans a total length of 1,541 km, passing through 15 provinces and cities, with a design speed of up to 350 km/h and a total investment of approximately 1.7 million billion VND (equivalent to 67 billion USD). The Da Nang section alone is over 116 km long, traversing 24 communes and wards. The scale of LC in Da Nang is immense, with plans to reclaim over 866 hectares of land, affecting approximately 5,100 households.
To ensure new housing for residents, the city plans to construct 34 resettlement areas and 13 cemeteries. The total investment for compensation, support, and resettlement work amounts to over 19,500 billion VND.
To date, Da Nang has established two specialized working groups, completing or substantially completing 16 out of 31 LC tasks. The city has also commenced construction on the Dien Ban Bac resettlement area to proactively secure land for the project.
Regarding resources, the Da Nang People’s Committee has reported to the People’s Council and secured additional budget capital for the 2021–2025 and 2026–2030 public investment plans. However, to expedite progress, Da Nang has urged central ministries and agencies to promptly agree on the route, hand over field markers, and provide the Feasibility Study Report.
Financially, the city has requested the Ministry of Finance to allocate 19,000 billion VND from the central budget, with the remainder to be covered by the city’s budget.
Secretary Lê Ngọc Quang concludes the meeting.
Concluding the meeting, Secretary Lê Ngọc Quang acknowledged and praised the efforts and active coordination of agencies, units, and localities in implementing the preparatory procedures for LC of the North-South High-Speed Railway Project in Da Nang.
“Regarding compensation policies, it is necessary to review and streamline procedures, reduce opinion-gathering time, appraisal, and approval to ensure progress. Simultaneously, thoroughly review the origins of public land, disputed land, religious land, historical sites, and long-standing land without documentation to have definitive handling plans from the outset,” Secretary Lê Ngọc Quang emphasized.
He also required agencies, units, and localities to continue effectively implementing tasks according to Plan No. 01 of the Steering Committee, urgently work with the Ministry of Construction and the Railway Project Management Board to finalize the route, streamline resettlement area procedures, and concentrate resources for synchronized implementation. Localities should proactively allocate land funds and complete resettlement area approval procedures at once, avoiding piecemeal submissions that prolong the process.
“The North-South High-Speed Railway Project is a national key project with a massive investment and workload. Land clearance and resettlement arrangements must be swift, decisive, compliant with regulations, and have the consensus of the people. The entire political system must engage decisively, demonstrating the highest sense of responsibility to accomplish the task,” Secretary Lê Ngọc Quang stressed.
Currently, Truong Hai Group (THACO) and VinSpeed Railway Investment and Development JSC – an enterprise within the Vingroup ecosystem – have submitted proposals to participate in the investment of the North-South High-Speed Railway Project.
Considering the total investment and capital plan, both THACO and VinSpeed estimate the project’s total investment at 61.35 billion USD, excluding LC and resettlement support costs.
THACO will contribute 20% of the total capital (nearly 12.3 billion USD) through equity and legal domestic mobilization. The remaining approximately 49 billion USD will be borrowed from domestic and foreign credit institutions. THACO requests the government to guarantee and support the entire interest payment for 30 years, secured by assets formed from the project.
VinSpeed also proposes a 20%-80% capital contribution ratio. The company commits to arranging 20% of the capital, equivalent to 12.27 billion USD (excluding LC costs), and requests the state to lend the remaining 49 billion USD at a 0% interest rate for 30 years.
In terms of timeline, compared to the 10 years if the state executes the project independently, VinSpeed pledges completion within 5 years, while THACO commits to 7 years in two phases: the Hanoi – Ha Tinh and Nha Trang – Ho Chi Minh City sections within 5 years, and the remaining sections within the following 2 years.
Regarding benefits, both companies propose that the state allocate adjacent land funds along the railway for real estate project development.
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