Large scale land acquisition lessons learnt from the ecopark project, vietnam

Forum for Urban Future in Southeast Asia South-East Asian Expert Seminar Urban natural and social risk management in South East Asia Cologne, September 4, 2012 Abstract  April 24th a thousand policemen enforced a 72 hectare-land acquisition  State’s land acquisition favoured developers Understandings of a fair compensation Market price and ‘State’s price’ and ‘scaling up’ project such as Ecopark ‘Net present value’, hedging the ‘third party’ speculation, and internalising development benefit to local people More positive changes to lessen social risk in future than the concern of the social problem in large-scale acquisition INTRODUCTION Background Compulsory acquisition for commercial housing projects applicable to only large-scale development – new urban and new town trigger a race for large-scale land acquisition for new urban development projects, as compulsory acquisition price well below the commercial developed land price caused Ecopark, a new town adjacent to Hanoi, approved as exchange land for infrastructure project (500ha for 14km highway links to Hung Yen – neighbouring city) Ecopark classes in enforcement triggers discourses on the issue LOCATION - PROJECT DEVELOPMENT - LAND ACQUISITION - CONFLICTS & DISPUTES ECOPARK Location ECOPARK Project nature 500ha new urban development project Exchange for NEW14km road linking Hung Yen to Hanoi ECOPARK 9 phases Phase Phase Development phase 500ha 54ha 72ha Multiple phases development (9 phase, 1st phase completed) LAND DISPUTES Enforcement Disputes remained after rounds of negotiation on compensation rates Enforce hundreds of households by a thousands of policemen and staff LAND DISPUTES Aftermath Blame of the power abuse outburst April 24 Media fighting April and May 2012 Hung Yen Province press meeting May 2012 MP & MONRE nquiry of the National Assembly Members June 2012 Public Hearing of Vice Minister of Ministry of Environment & Natural Resources August 2012 LAND DISPUTES Benefit vs loss  Evicted fights for their interests – 5.8ha whose land whose price  Government backed the plan – State land - fair price – public interest  Where are the developers? Land price – Planning favorability – Pie share - Speculation DISCUSSION Increasing price over time - - 20’000k/m2 20’000k/m2 10k/m2 70k/m2 135k/m2 - 2004 grant project 2008 compensation 2011 disputes 2012 enforcement DISCUSSION Government acquisition – scaling up projects 50ha, new urban area & housing purpose Negotiation with occupants 20ha, special case (Decree 02-2006, Decree 181-2004, Decree 69-2009) Government price on frame DISCUSSION Land price increase – pie share Risk investment Luck ??? – capital gain DISCUSSION Land price increase – speculation Speculation Luck Natural increase due to social development Infrastructur e Investment Original Risk investment Findings & Discussions DISCUSSIONS  Price Prolong large-scale project increase and cost increase – which one faster?  Share of value increase and share of pie - who decides? DISCUSSIONS How to? Who distributes better? How to distribute better? DISCUSSION The plan, the price, the share, and the risk •INTERNALISATION? •CO-INVESTMENT? •SHARING INCREASING VALUE th Sept, 2012 Cologne Hieu.nqt@gmail.com ... trigger a race for large-scale land acquisition for new urban development projects, as compulsory acquisition price well below the commercial developed land price caused Ecopark, a new town adjacent... 2012 LAND DISPUTES Benefit vs loss  Evicted fights for their interests – 5.8ha whose land whose price  Government backed the plan – State land - fair price – public interest  Where are the. .. DEVELOPMENT - LAND ACQUISITION - CONFLICTS & DISPUTES ECOPARK Location ECOPARK Project nature 500ha new urban development project Exchange for NEW14km road linking Hung Yen to Hanoi ECOPARK 9