HCMC welcomes local,foreign economic sectors to develop infrastructure

SGGP
HCMC is now calling on both domestic and foreign companies to invest in the city’s infrastructure, meeting integration and development of the city as its budget can afford for 20 percent of demand. 

Chairman of the HCMC People’s Committee Nguyen Thanh Phong (L) and deputy Le Van Khoa (R) see an construction work sketch at the conference on June 14 (Photo: SGGP)

Chairman of the HCMC People’s Committee Nguyen Thanh Phong (L) and deputy Le Van Khoa (R) see an construction work sketch at the conference on June 14 (Photo: SGGP)

The statement was made by deputy chairman of the city People’s Committee Le Van Khoa yesterday.
Mobilization of other capital sources is inevitable amid limited budget funds, Mr. Khoa said at a conference hosted by the Department of Planning and Investment on capital attraction for infrastructure development under Public Private Partnership (PPP) form.
At the conference, chairman of the city People’s Committee Nguyen Thanh Phong said that PPP has been estimated as a good investment model in the world.
The capital demand for development investment of the city is estimated to reach VND850 trillion (US$34.46 billion) in the phase from 2016-2020 while the city budget is able to meet 20 percent of the number.
Of these, environment, traffic and anti-flooding infrastructures need VND500 trillion which the budget can supply only 31 percent. Therefore, the city must take the initiative in calling for investment to meet capital demand.
Mr. Phong required the Department of Planning and Investment to build norms for each type of PPP projects to choose investors lawfully and ensure benefit balance among investors, management agencies and residents.
The department should publicize the city’s public investment demand on its website and specific information about the list of PPP projects calling for investors.
At present, HCMC is doing investment procedures of over 130 projects under PPP model with the total capital estimated to reach VND381 trillion ($16.79 billion). Of these, traffic, environment and urban planning and development fields have 93 projects.
Commerce-services has two projects, education four, health 14 and sports and culture 17 projects.
In the phase of 2017-2020, the city continues calling for investment in 116 PPP projects with capital expected to reach VND136,714 billion.
Reporting at the conference, deputy director of the Department of Planning and Investment Nguyen Thi Thu Hoa said that before 2015 when the Government had not issued Decree 15 on PPP investment attraction, HCMC attracted 18 projects under BOT, BT, BTO and BOO forms with the total funds of VND59.2 trillion ($2.61 billion).
Of them, there were 15 traffic projects, one environment project and two parking lots. Projects that have been built and opened to traffic comprise Phu My bridge with the total capital of VND2,914 billion and Saigon 2 Bridge with VND1,827 billion.
After the Decree was issued allowing localities to use their land fund in return for PPP investors, HCMC has implemented five PPP projects with VND11,902 billion.

By HAN NI – Translated by Hai Mien

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