The government of Hanoi City plans to provide 39.8 hectares of land in Nam Tu Liem District in exchange for the construction of a 2.8-kilometer road, news website VnEconomy reported.

The Hanoi Department of Planning and Investment recently announced a project to build a road between Le Trong Tan Street and Ring Road 3 in Thanh Xuan District.

The road project is to be developed under the build-transfer format between 2018 and 2020 by a consortium of LOD Human Resource Development Corporation and Bac Viet Development Company Limited.

It requires an estimated VND1,412 billion (US$61.8 million), including VND274 billion for construction, VND967 billion for site demolition and clearance, and the remainder for other costs.

The route, which is 2.85 kilometers long and 30 meters wide, is to be equipped with adequate technical infrastructure, water supply and drainage, a fire prevention and control system and lights, among other things, according to the municipal Hanoi People’s Committee.

The new road is aimed at strengthening the local road network and facilitating traffic flows on nearby roads such as Nguyen Trai, Giai Phong, Ring Road 2 and Ring Road 3. This is expected to stimulate socioeconomic growth in the Thanh Xuan, Hoang Mai and Ha Dong districts.

The Hanoi authority intends to hand over 39.8 hectares of land in Dai Mo Ward of Nam Tu Liem District to the consortium.

The move is in line with the Government’s Decree 15/2015 on public-private partnership investment and the prime minister’s Decision 23/2015, which permits the State to use land to make payments to investors of build-transfer projects.

SGT