West West lake project takes another step north

February 21, 2011 | 08:00
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The Korean developers of a $314 million township project in Hanoi have received the green light to proceed with the second stage of land clearance and compensation.
Land clearance and compensation have prolonged the West West lake’s development

Hanoi People’s Committee vice chairman Phi Thai Binh at the end of January signed a document to permit the city’s Land Development Centre (LDC) to do land clearance and compensation for the second stage of the $314 million project.

The first lot of the second stage covering 88 hectares will involve land of Cau Giay district’s Nghia Do commune and Tay Ho district’s Xuan La commune.

Dung said in the second phase, a part of local residents would be re-located right within the project, according to residents’ wishes.

“This [relocation] will create more favours for local residents,” Dung said.

LDC director Tran Huy Dung said more than 80 per cent of the first stage’s 117 hectares had been cleared. The rest belongs to existing canal system of the capital city and would be rebuilt later.

At the end of the first stage, more than VND1.1 trillion ($54 million) was spent for land clearance and compensation activities.

Developed by a South Korean consortium led by Daewoo Engineering and Construction, the project was licenced in February, 2006.  The project has since been delayed due to the restructuring of Daewoo Engineering and Construction  and the changing in land clearance and compensation policies.

In 2006, Daewoo Engineering and Construction was merged into Kumho and the implementation of its projects in Vietnam all was delayed. The West West lake however was backed to life since 2008. Meanwhile, changing land clearance and compensation policies caused the change in compensation levels and expenses.

In 2009, Hanoi People’s Committee issued Decision 108 to increase the compensation fees by up to five times compared to the previous policy.  The previous Decision 18 issued in 2008 stated that the compensation for one square meter of agricultural land was only more than VND200,000.

Located next to the West lake in an area of 207ha, the project’s site is evaluated as the best left for investors in Hanoi.

By Bich Ngoc

vir.com.vn

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