On the morning of November 18, the city’s Urban Infrastructure Investment Project Management Board held a groundbreaking ceremony for Construction Packages XL-01 and XL-02, both part of the key initiative titled “Dredging, Environmental Improvement, and Infrastructure Development of Xuyen Tam Canal.”

The Xuyen Tam project was approved by the municipal People’s Council in 2022, with total investment exceeding 17 trillion VND (approximately 700 million USD), fully funded by the city budget. Spanning a total length of 8,865 meters, the project encompasses dredging the canal bed, constructing embankments, developing wastewater collection systems, building roads along the canal, establishing parks and green spaces, and installing technical infrastructure and lighting.

The project is divided into three construction packages. XL-03, covering a 1.3 km stretch from Luong Ngoc Quyen Street to the Vam Thuat River, began construction in May 2025 and is expected to finish in November 2026. Contractors are currently working to stay on schedule.

Today’s ceremony also marked the official launch of the remaining two packages.

Package XL-01, valued at 1.16 trillion VND (approximately 47 million USD), covers a 2.94 km segment from the Nhieu Loc – Thi Nghe Canal to Bui Dinh Tuy Bridge. This section runs through Gia Dinh and Binh Thanh wards.

Package XL-02, with an investment of 1.21 trillion VND (about 49 million USD), spans 4.513 km from Bui Dinh Tuy Bridge to Luong Ngoc Quyen Street and passes through Binh Thanh and Binh Loi Trung wards.

At the ceremony, Vice Chairman Bui Xuan Cuong reaffirmed the strategic significance of the Xuyen Tam canal project, noting that it directly affects more than 2,000 households.

He called on stakeholders to mobilize additional resources and shorten construction timelines. Specifically, he urged that Package XL-03 be completed by September 2026 instead of the original November deadline. Packages XL-01 and XL-02, which began today, should aim for completion by 2027 instead of 2028.

Cuong instructed contractors to begin work immediately after the ceremony and, if necessary, work in three to four shifts daily, including weekends and holidays, to make up for delays.

Regarding funding, Ho Chi Minh City allocated 1.8 trillion VND (about 72 million USD) for 2025, but disbursement has only reached about 50%. Cuong emphasized the need to accelerate this pace to meet the annual target.

In terms of site clearance, local authorities in the four affected wards must hand over land by the end of November. Relocation and compensation issues must be reported promptly. Relevant departments were asked to assist investors with quality supervision, capital allocation, and zoning adjustments.