The Hanoi People's Council has approved a resolution to reduce the total investment in the Yen Xa Wastewater Treatment System project from over VND 16 trillion ($656 million) to VND 11.1 trillion ($456 million), a decrease of more than VND 5 trillion ($200 million).

The Yen Xa project, initially launched in 2013, aims to revitalize Hanoi’s rivers, including the iconic To Lich River, by improving wastewater treatment and water quality. Funded primarily by a loan from the Japan International Cooperation Agency (JICA), which accounts for over 84% of the budget, the project also receives VND 2.5 trillion ($102 million) in counterpart funding from the city’s budget.

The project comprises four main packages:

Package 1: Construction of a wastewater treatment plant with a capacity of 270,000 m³/day, which is now mostly completed and undergoing trial operation.

Package 2: Development of a sewer system for the To Lich River, with 98% of the work completed.

Package 3: Construction of a sewer system for the Lu River, with only 10% of the work finished before the contract with the contractor was terminated.

Package 4: Sewer system construction for parts of Ha Dong District and new urban areas, with 20% of the work completed.
As of October 2023, the total disbursed capital for the project is nearly VND 5 trillion ($205 million).

The project’s budget adjustment reflects updated valuations for several components:

Revised costs for Packages 1, 2, and 4, as well as consulting services, based on current contractual values.

Package 3's budget was recalibrated according to actual disbursements at the time of contract termination.

n addition to the budget cut, Hanoi has proposed extending the project's timeline by two years, pushing the completion date from 2025 to 2027.

During a recent inspection, Hanoi’s Chairman, Tran Sy Thanh, instructed relevant agencies to supplement the To Lich River with water from the Red River by September 2025. This effort is part of the city’s broader plan to "revive" the historically polluted waterway and integrate it into Hanoi's green urban development vision.

Quang Phong