Hanoi lacking funds to develop urban area on new route from city to airport.
The Hanoi People’s Committee has prepared a proposal regarding the development of the Nhat Tan - Noi Bai urban area, along the two sides of the new Nhat Tan - Noi Bai route from the city to the airport.
The capital needed for building infrastructure is approximately VND32.8 trillion ($1.5 billion), of which VND22 trillion ($1 billion) is for actual construction and VND10.8 trillion ($500 million) for site clearance. “At the moment the city does not have the budget for the development, which means mechanisms must be established to select investors and conduct site clearance,” the proposal states.
Regarding mobilizing capital, the city has proposed that capital put forward by investors is then deducted from future land use fees and land rentals for the project. This seems feasible, since land use fees in urban development projects along the route could reach VND26 trillion ($1.2 billion).
The People’s Committee is gathering opinions from Ministries on the proposal and it will be submitted to the government at a later date.
The city has also requested the government arrange preferential loans and set aside official development assistance (ODA) funds. Hanoi will use money from land use fees for repayment.
It also wants to conduct a bidding auction for investor selection. “The successful bid will be based on experience, financial capacity, and management capacity,” the proposal states.
The Nhat Tan - Noi Bai route connects central Hanoi with Noi Bai International Airport. The detailed planning for the two sides of the route is for 2,080 hectares, with the length of the route being 11.7 kilometers from the new Nhat Tan Bridge to Noi Bai International Airport.
- Nhat Tan
- Noi Bai
- urban development