After the developer and a bank signed a loan agreement with a credit limit of nearly VND13.5 trillion, Ho Chi Minh City plans to begin compensation payments next week for residents of Ma Lang and Ga-Gao Market.
On October 22, Khang Dien Investment and Trading JSC and VietinBank signed a loan agreement for the urban redevelopment project at Ma Lang and Ga-Gao Market. The total credit limit is nearly VND13.5 trillion.
The ceremony was attended by Le Quoc Phong, standing deputy secretary of the Ho Chi Minh City Party Committee; Hoang Nguyen Dinh, vice chairman of the municipal People's Committee; and leaders of relevant departments and local authorities.
Hoang Nguyen Dinh praised VietinBank and Khang Dien for working together to prepare the financial resources for the project.
"Under the plan, the city is expected to begin paying compensation to affected households next week," Dinh said. VietinBank has committed to disbursing funds immediately after the signing ceremony to provide money for compensation and site clearance.
City leaders described the redevelopment of Ma Lang and Ga-Gao Market as a social welfare project rather than a profit-making venture. The city plans on-site resettlement so affected residents can have stable housing in the area where they have lived for many years.
Khang Dien will implement the project. Its general director, Vuong Van Minh, said that once the work is complete, residents whose families have been connected to the area for generations will be able to return to new homes with parks, schools and public facilities.
A project without a profit objective
VietinBank Chairman Tran Minh Binh said the bank viewed its participation as more than commercial lending, describing it as an opportunity to work with the city and the developer to provide residents with better housing.
Ma Lang, in Cau Ong Lanh Ward, and Ga-Gao Market, in Ben Thanh Ward, are in central Ho Chi Minh City. They are long-established residential areas with tightly packed homes, many small properties, narrow alleys and incomplete technical infrastructure. These conditions create fire risks and make rescue operations more difficult.
The preliminary investment for redeveloping the two areas is more than VND16.369 trillion. The project will use a public-private partnership model under a build-transfer contract.
Ma Lang covers about 3.77 hectares. The plan calls for 1,400 social housing apartments and 93 low-rise houses. On the roughly 4,350-square-meter Ga-Gao Market site, 760 apartments for resettlement are planned.
Ben Thanh and Cau Ong Lanh ward authorities recently collected residents' opinions on the compensation, support and resettlement plan.
In Ma Lang, the highest compensation for residential land is more than VND484 million per square meter. This rate applies to first-position urban residential land bordering Nguyen Trai Street. At Ga-Gao Market, the highest land-use price for calculating compensation and support is more than VND609 million per square meter. It applies to first-position urban residential land bordering Yersin Street.
Sources: Thanh Niên
