Hanoi eyes Geleximco as investor for $2.86 bln project to revive polluted Nhue river

Hanoi plans a VND75.12 trillion ($2.86 billion) public-private partnership (PPP) project to rehabilitate the heavily polluted Nhue river, combining flood control upgrades, dredging, and wastewater treatment infrastructure.

The project, proposed under a build-transfer (BT) contract model, is expected to be implemented between 2026 and 2029. The city has proposed private multi-sector conglomerate Geleximco as the investor under a special selection mechanism.

The project covers the entire section of the Nhue river in Hanoi, passing through 19 wards and communes. Total land demand is estimated at about 855 hectares.

According to the proposal, the project comprises four components.

The first involves land clearance to widen the river in line with urban planning, construction of roads and landscaping along both banks, and the creation of land reserves to repay the BT investor and provide additional land resources for the city.

The second includes dredging and rehabilitation of the river channel, construction of embankments, upgrades to existing sluice gates, and the possible construction of a new regulating sluice in Xuan Phuong ward.

The third focuses on transport and technical infrastructure, including roads, lighting systems and wastewater collection networks along both sides of the river, together with sewer pipelines, manholes, stormwater separators, and pumping stations to transit wastewater to treatment plants.

The final component consists of constructing up to 13 wastewater treatment plants in accordance with the city’s master plan and integrated with the collection system along the river.

Hanoi authorities said the 61.5-km stretch of the Nhue river within the city serves as an important drainage channel and intersects with several major transport corridors, including Tay Thang Long road, National Highway 32, Thang Long boulevard, National Highway 6, and Ring Road 4.

However, the river has suffered from severe pollution and water shortages for many years, with water quality regularly exceeding permitted standards and no longer meeting the functions of a surface water source.

Residents and local authorities along the river have repeatedly urged the city to accelerate restoration efforts to improve the environment, enhance the landscape, and upgrade infrastructure.

To repay the investor, Hanoi is projected to use land from six reciprocal development projects with a combined estimated value of VND69.1 trillion ($2.63 billion).

The proposed land lots include 117 hectares in urban projects in Son Dong and An Khanh communes, 100 hectares in Yen Nghia ward, a 1.5-hectare site in Giao Luu urban area, 20 hectares along National Highway 32, another 20 hectares along the Ho Tay-Ba Vi Boulevard corridor, and a 95-hectare site near Lien Mac sluice gate.

The city also intends to appraise adding more land parcels recovered along the river during project implementation.

Hanoi said the proposed land bank is only a preliminary option for determining payment resources under the BT contract. The location, size and value of each land lot will be further reviewed during the feasibility study phase to ensure a balance of interests between the state and the investor while minimizing financing costs.