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Friday, 18/7/2025 | 00:05 GMT+7

Can Tho highway project sees $127 million surplus due to land price drop

Lower land prices and reduced compensation area resulted in a significant surplus for the National Highway 91 upgrade project in Can Tho.

A representative from Can Tho City's Land Development Fund Center explained that the actual compensation cost for the 7 km upgrade and expansion of National Highway 91 through the city center was significantly less than initially projected.

The section of National Highway 91 through Can Tho's city center is part of the upgrade and expansion project. Photo: An Binh

The section of National Highway 91 through Can Tho's city center is part of the upgrade and expansion project. Photo: An Binh

Approved 14 years ago, the six-lane National Highway 91 upgrade project, with a maximum speed of 60 km/h, was initially halted due to a government resolution on public investment cuts to control inflation. Last year, the Can Tho People's Committee approved the project with a total investment of 7,237 billion VND (approximately $307 million USD). This included over 5,550 billion VND for site clearance, over 1,300 billion VND for construction, and the remainder for other expenses.

However, during a July 13 meeting with the Prime Minister regarding the progress of key transportation projects, Can Tho City People's Committee Chairman Tran Van Lau reported a decrease of over 3,000 billion VND (approximately $127 million USD) in the project's total investment. This discrepancy stemmed from an overestimation of the compensation costs for site clearance.

Truong Thanh Dat, Deputy Director of the city's Land Development Fund Center, explained that the initial estimate of over 5,550 billion VND for site clearance was based on inflated land prices. The projected market price for land within the project area was 135 million VND per square meter. However, at the time of compensation approval, the actual land prices were between 60 and 90 million VND per square meter.

The section of National Highway 91 through Can Tho's city center is prone to severe flooding during heavy rain and high tides. Photo: An Binh

The section of National Highway 91 through Can Tho's city center is prone to severe flooding during heavy rain and high tides. Photo: An Binh

Initially, the Land Development Fund Center estimated the compensation area to be around 7 hectares. However, upon further legal review, they determined that most of the land fell within the road corridor, which qualifies for only 60% compensation according to regulations. These factors combined to reduce the total cost of compensation, support, resettlement, and technical infrastructure relocation to just over 2,371 billion VND (approximately $98 million USD).

Le Minh Cuong, Director of the Can Tho City Construction Investment Project Management Board (the project investor), stated that the project affects approximately 1,100 cases. Authorities have completed surveying and assessing the affected parties. Localities along the project route are expediting the compensation and site clearance process for the project's groundbreaking on 19/8.

Chairman Tran Van Lau proposed using the 3,000 billion VND surplus for new projects, such as resettlement areas. Can Tho currently has several key projects impacting many households eligible for resettlement, but the city lacks sufficient resources. Chairman Lau also suggested using this surplus for development-driven projects.

The route of National Highway 91 extends over 140 km, with the section through Can Tho being expanded. Graphic: Dang Hieu

The route of National Highway 91 extends over 140 km, with the section through Can Tho being expanded. Graphic: Dang Hieu

The 142 km National Highway 91, stretching from Can Tho to the Tinh Bien International Border Gate (An Giang), passes through numerous industrial zones and ports along the Hau River. It is a vital artery in the Mekong Delta, connecting Can Tho with An Giang and Cambodia. The route also links National Highways 1, 91B, and 80 with the Lo Te - Rach Soi Expressway.

An Binh

By VnExpress: https://vnexpress.net/nguyen-nhan-du-an-duong-o-can-tho-bi-tinh-du-hon-3-000-ty-dong-4915449.html
Tags: $127 million surplus overestimation reasons Can Tho

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