The Urban Infrastructure Construction Investment Project Management Unit (UPMU) estimated in a proposal that it would cost VND8.2 trillion (VND355.96 million), including VND6.4 trillion for dredging and upgrading the canal, VND718 billion for acquiring and clearing lands and the rest for incidental expenses.

The city legislature, the People's Council, will consider the proposal at a session Friday next week.

Renovation of this canal system has been under consideration for several years now but the city has not come up with plans for it.

The current proposal envisages building concrete embankments and roads that run 33 km (20.5 miles) along the canal, dredging the entire water body, rebuilding or repairing sewer systems, and building 12 docks.

This will improve drainage and prevent flooding in the seven districts of 12, Binh Tan, Tan Phu, Tan Binh, Go Vap, Binh Thanh, and Binh Chanh.

The work is expected to take five years.

UPMU said it would also help improve waterway transport between HCMC and the Mekong Delta as well as two of its neighboring provinces, Binh Duong and Dong Nai, easing traffic jams on a number of highways.

In the long run it would also serve tourism, the proposal said.

To fund the work, VND4 trillion will come from the government and the rest from the city.

Last October the city People's Committee, the executive, had sought allocation of the amount by the Ministry of Planning and Investment.

HCMC, home to 13 million people, has struggled with traffic congestion and flooding of roads caused by high tides and rains for decades.