Trung Hoa-Nhan Chinh urban area in Ha Noi's Cau Giay District is home to many people who have been resettled due to infrastructure projects. Ha Noi faces a shortage of housing. (Photo: VNS)Ha Noi authorities have asked the Department of Construction to check on the availability of land and capital for resettlement projects this month to see if projects can be sped up.

According to vice chairman of the Ha Noi People's Committee Nguyen Van Khoi, the city encountered a severe shortage of houses for resettlement this year.

There are now nearly 1,260 apartments available in the city's housing fund for resettlement - and another 2,000 are planned for completion this year.

However, this was only about 50 per cent of demand, said deputy director of the Department of Construction Nguyen Quoc Tuan.

Many infrastructure projects created an urgent need for resettlement housing that had not always been met. This included ring road No 2 from Vinh Tuy Bridge to Nga Tu Vong Crossroads which calls for the construction of 3,500 resettlement apartments. Then there is another 9,000 homes needed to resettle families from the Nguyen Hoang Ton Street project in Tay Ho District.

"The shortage has become a headache because it slows down land clearance on other construction projects," he said.

Delays in construction also lead to price increases for land and building, causing waste. In Cau Giay District alone, three projects have had to increase their total estimated investment because of delays.

And, many resettlement projects have been completed but left empty because they took too long to finish and residents found other living space. The new buildings became rundown and it cost the Government extra for maintenance.

Most investors blamed the stagnation on the slow allocation of capital, said Tuan, adding that a shortage of land also delayed resettlement projects. He said the policy of designating 20 per cent of urban-zone land for resettlement did not improve the situation much because land clearance was too slow, such as at Phap Van-Tu Hiep urban area in Hoang Mai District.

To deal with the shortage, the Department of Construction proposes to transfer completed resettlement housing left empty for more than 12 months to other projects.

Another proposal to speed things up is to give residents money to resettle or buy apartments at other projects. It has also been suggested that incentives should be given to investors to encourage them to speed up construction.

Currently, 52 resettlement housing projects are under construction. They will be expected to provide 14,100 apartments by 2015. However, the city will need about 20,000 resettlement homes by this date.

Source: VNS