Hanoi authorities have proposed renovating, upgrading and reorganizing the space around Hoan Kiem Lake and nearby areas. The project's preliminary cost is VND 22.229 trillion. It includes a four-level underground shopping center and a new city hall building.
On October 27, the Hanoi People's Committee submitted a proposal to the city People's Council seeking approval of the investment policy and the investor for the project to renovate, upgrade and reorganize the space around Hoan Kiem Lake and adjacent areas.
The project would cover the Hoan Kiem and Cua Nam wards. It is planned as a public-private partnership under a build-transfer contract, with full completion expected in 2029.
The redevelopment is divided into three separate components.
The first component would clear the entire project area. Its planning study covers about 66.82 hectares, while the proposed land-use area is about 30.82 hectares. The component is estimated to cost VND 9.924 trillion and would be funded from the city budget, with the Hoan Kiem Ward People's Committee as the investor.
The second component covers an underground shopping center in the park and square area east of the lake, at plot B2.5, and north of the lake, at plot B1.3.
The shopping center would have four basement levels and more than 82,600 square meters of floor space. Investment is estimated at VND 4.611 trillion. Capital Sun Real Estate is named as the investor. Rental income from the underground space is expected to reach about VND 1.604 trillion, which would go to the budget to pay for the third component.
The third component includes construction, landscaping and improvements around Hoan Kiem Lake and nearby areas. Its preliminary cost is VND 7.694 trillion. It would also be carried out as a public-private partnership under a build-transfer contract.
The plan calls for a new Hanoi People's Committee headquarters, estimated at VND 3.518 trillion, renovation of the city People's Council headquarters at about VND 268 billion, and improvements to the southeastern area of the lake at about VND 3.908 trillion. Capital Sun Real Estate is also the proposed investor for this component.
Hanoi is considering several payment options for the third component. The payment could use a land fund, city budget funds and rental income from the underground space in the second component. Another option would use budget revenue from auctions of six land plots.
The six plots cover about 7.31 hectares in total and have a preliminary value of VND 4.878 trillion. They include a plot on Trang Tien Street measuring 0.77 hectares, land on both sides of the post office measuring 0.52 hectares, 1-3 Tang Bat Ho measuring 2.29 hectares, 5 Le Thanh Tong measuring 0.34 hectares, 15 Hai Ba Trung measuring 0.09 hectares, and a plot in Dong Anh Commune measuring 3.30 hectares.
The city said the land could be handed to the investor or auctioned for land-use rights to pay the investor carrying out the build-transfer project.
Hanoi says the project is intended to create a large square and connect Hoan Kiem Lake with August Revolution Square, the Hanoi Opera House, the Vietnam National Museum of History and nearby areas.
It would also expand public space, reorganize traffic and underground space, preserve and promote the value of the heritage site, and add suitable cultural and service functions.
In its proposal, the Hanoi People's Committee also asked the State Audit Office to participate in auditing from the implementation stage. The audit would provide a basis for reviewing and determining the total investment and expenses, while supporting compliance with regulations and economical use of resources.
Sources: Thanh Niên
