The Tien Giang Provincial People’s Committee in the Mekong Delta has proposed the Ministry of Transport provide an additional VND138 billion ($5.8 million) for site clearance and compensation for the second phase of a project upgrading the Cho Gao Canal.

The project includes packages to dredge nearly 10 km of the canal and build items to protect its southern banks as well as bridges and roads passing through Binh Phuc Nhut and Binh Phan communes and Cho Gao town.

The Cho Gao Canal stretches over 28 km and connects the Tien and Vam Co Rivers. It is a key waterway linking the Mekong Delta and Ho Chi Minh City and serves over 2,000 vessels each day.

After the upgrade, the canal will be over 3.5 meters deep and 50 meters wide. The project was to be completed by 2023.

It was approved in 2021 with total investment of over VND1.33 trillion ($56 million).

However, delays have occurred after 18 months of work due to factors including obstacles in site clearance.

Site clearance and compensation costs had been approved at over VND556 billion ($23.8 million), but this was based on the old land price, according to local authorities. Since 2021, the State has applied a new land price list, so the site clearance cost has increased.