Site clearance 'bottleneck' needs to be fixed

Data from the Ministry of Planning and Investment (MPI) reveals that 1,867 investment projects using State budget funds were behind schedule in 2020, of which 1,074 projects had problems with site clearance.

Site clearance and relocation are the main factors causing delays in project implementation in some provinces. Moreover, site clearance costs more reciprocal capital in ODA projects. Can Tho’s ODA Project Management Unit has explained that increases in reciprocal capital are due to many projects not estimating the cost of site clearance compensation during project planning.

Vinh Phuc also faces the same problem. According to Mr. Nguyen Van Do, Director of the provincial Department of Planning and Investment, site clearance in public investment projects has long faced many difficulties and become an “eternal bottleneck” delaying projects. “While site clearance is a complex and often lengthy issue, the human resources needed to deal with it at the local level remain inadequate,” he said.

A solution needs to be identified to speed up implementation and disbursement of the 2021 public investment capital plan. Vinh Phuc has offered more bonuses to land owners and to public workers taking part in site clearance. Mr. Do also suggested separating site clearance into separate projects as well accelerating the implementation of public investment projects. Such a separation is currently only permitted in Type A projects but not Type B or C projects. Some experts have suggested that site clearance and compensation be more transparent, and that the Land Law (amended) should stipulate a uniform mechanism for the process.