Nguyen Hoang Nhan, director of the HCM City Urban Upgrade Project, said selection of contractors for some of the bid packages, including building culverts, will begin this quarter.

The project will upgrade 7.4 kilometres of canal and dredge it, build 12km of roads and 10 new bridges, and build culverts along the canal banks for draining wastewater, he said.

The project, which is estimated to cost more than US$128 million, will be financed by a World Bank loan, and is part of the HCM City Urban Upgrade Project. It will also beautify 14,120 square meters at four sites along the canal in Districts 6, 11, and Tan Binh.

The canal passes through these districts and Tan Phu.

Site clearance has been speeded up by local authorities. Around 1,630 families will lose all or part of their lands, with 715 of them set to be relocated.

The work is expected to be completed in mid-2014.

Tan Hoa – Lo Gom is severely polluted since untreated wastewater from houses and factories along the canal is released directly into it, impacting the lives of nearly 1.5 million people.

Nhan said to completely eliminate pollution in the canal, it is required to build a wastewater treatment plant with a daily capacity of 300,000 cubic meters.

A plant is planned to be built in Binh Chanh District's Tan Nhat Commune, but the city has been unable to raise the amount of $300 million required for it, he said. — VNS