HCMC absorbs US$ 1.15 billion of PPP projects
10:03 | 25/08/2017

VGP – A Memoranda of Understanding (MoU) to provide credits for eight PPP projects with a total investment capital estimated at VND 26 trillion (US$ 1.15 billion) was signed on August 24 in Ho Chi Minh City.

The signing ceremony took place at a meeting between investors and banks to implement seven major programs in HCMC for the 2016-2020 period. These projects target to build North-South axis road, Nguyen Tat Thanh road and Tan Phu hospital.

Chairman of the HCMC People’s Committee Nguyen Thanh Long was quoted as saying that the city is coping with serious challenges of environmental pollution, traffic congestion, flood control, immigration, and climate change. These problems have directly affected local growth and competitiveness. He was convinced that seven key programs would generate a new impetus for the city to develop and resolve public concerns.

The HCMC Department of Planning and Investment estimated that the city needs around VND 850 trillion (US$37.7 billion) to implement the seven major programs. The city’s budget, however, could only cover 20% of the total investment capital needed.

Earlier, the seven programs were approved at the city’s 10th Party Congress. They include human resource quality improvement; administrative reform; a more competitive business climate; traffic calming; climate change response; pollution reduction; and urban refurbishment and development. Sixty per cent of the capital will be mobilized for transport infrastructure, environment and flooding issues.

The local authorities will work to attract potential investors. Strategies will include administrative procedure reform to facilitate investors to access opportunities.

With State resources under strain, applying the model of public-private partnerships (PPP) is a growing trend to develop public infrastructure and services.

The city should also focus on projects that will be attractive to investors and commercial banks, he said. Greater transparency and publicity in PPP investment would help, too./.

By Kim Anh

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