VietNamNet Bridge – Estimates for site clearance for the proposed Long Thanh airport project are VND20.7 trillion, but analysts believe the costs would be even higher as land prices in the area have been increasing rapidly.

According to the Dong Nai provincial People’s Committee, the budget for site clearance is VND15.3 trillion, of which VND5.9 trillion would be spent to compensate local people who have to move to make way for the project.

A budget of VND3.35 trillion would be used to pay the resettlement and award the locals who move soon to facilitate project implementation.

If counting the estimates for the building of two resettlement areas, the total spending on site clearance and resettlement would be VND20.7 trillion.

However, Dang Minh Duc, deputy director of the Dong Nai provincial Department of Natural Resources and the Environment, warned that the total cost for the site clearance may be far different from the estimates, depending on the land prices when the state takes back land from locals.

Sources said the price of agricultural land in the area has soared to VND1.5 billion per hectare.

The Dong Nai provincial authorities will have to recover 81 hectares of housing land, including 497,000 square meters of houses. It is expected that the project will affect 4,541 households with 14,462 members. It will be not an easy task to relocate such a large community.

An official of the provincial authorities said the detailed plan on the site clearance work has not been drawn up. Meanwhile, the local authorities should have started the work to be sure that the airport project can begin as scheduled. It is expected to take at least one year to fulfill the site clearance work and resettlement.

The provincial authorities reportedly have asked the state to advance a part of the resettlement budget, so that they can accelerate the site clearance process. However, to date, the local authorities still cannot approach the source of capital, while the policies for the projects remain unclear.

Dong Nai has been told to spend VND7.152 trillion on the resettlement work in the first phase and VND13.618 trillion in the second phase in 2015-2020. However, the actual spending would be much higher.

Dinh Quoc Thai, chair of Dong Nai province, said the local authorities have asked for a special mechanism to be used for the Long Thanh airport project.

The province is seeking the Prime Minister’s permission to assign responsibility to provincial authorities for the project on compensating for land recovery and resettlement.

Over 14,460 residents will have to move, including 9,222 people of working age.

Kim Chi