3:35:34 PM | 27/4/2010
The people’s council of Hanoi has adopted a controversial construction plan envisaging $60 billion worth of infrastructure development for the city until 2030, state media said.
In their meeting April 20, the people’s representatives agreed to ask the Prime Minister to approve the plan, the Hanoi Moi newspaper said.
But the representatives consented that 20 parts of the plan had to be amended before it is submitted to the Prime Minister on environmental and other concerns.
The Vietnamese government selected a group of American and South Korean consultants including Perkins Eastman-Posco E&C and JINA (PPJ) to design the plan at a cost of $7 million in 2008.
The PPJ also proposes some $30 billion for infrastructure development in the 2030-2050 period.
The Vietnam Construction Environment Association (VCEA) criticized the design as “infeasible” in a meeting with PPJ and government officials Mar 27.
The association cited 10 serious shortcomings of the plan, particularly in terms of environment and resettlement, the Doi Song & Phap Luan reported Mar 30.
“With a pride for the country, the authorities should not accept such a bad plan,” said PhD Pham Ngoc Dang, VCEA president.
In particular, the association requested PPJ to make a reliable strategic report on environment to submit to the state authorities.
Experts have repeatedly warned of excessive and inefficient investment in Vietnam, causing high inflation and rising debt risks.
Vietnam’s Incremental Capital Output Ratio (ICOR) hit 8 last year, meaning low investment efficiency due to corruption and wastefulness. The figure was only 5 in Thailand at the same time. (New Hanoi, Life & Law)
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