$1.1 billion loan to be spent on eight PPP projects

The Department of Investment and Planning in Ho Chi Minh City basically finished the website of public-private partnership (PPP) projects which are scheduled to launch on the third quarter of the year.

$1.1 billion loan to be spent on eight PPP projects

The municipal People’s Committee today held a meeting amongst investors with banks, and local credit institutions to call for participation into seven projects in the seven breakthrough programs outlined by the municipal Party Committee in a bid to ensure for the projects’ success and boost its progress and social contributions to the projects.
At the meeting, some agreements were signed between investors and banks, credit institutions such as Ho Chi Minh City Finance and Investment state-own company (HFIC), Investment Technical World Corporation, Thu Thiem Investment Company, Vietnam Medical Equipment Company, Nam Rach Chiec Company, Tien Phuoc Realty Compny, Viet Anh Medical Company, An Gia Hung Construction Company, Khanh Hoi Sugar Company, An Dien Construction Investment Company, State-owned commercial bank Vietcombank, Vietinbank, the Vietnam Bank for Agriculture and Rural Development (Agribank) , Sai Gon Commercial bank, Phuong Dong bank, Tien Phong bank and Bank for Investment and Development of Vietnam. Total loans are VND26 trillion ($1.1 billion)
For instance, HFIC signed an agreement with An Gia Hung Construction to provide loans for building a medical center in District 7 with total investment of VND9 billion.
Speaking at the meeting Chairman of People’s Committee Nguyen Thanh Phong said that at present development capital for the period 2016-2020 is estimated around VND1,830,000 billion; of the amount, the city will need a whopping VND850,000 billion or 46 percent to carry out traffic infrastructure, environment rehabilitation, flooding prevention, flood control and response to climate change and rising sea levels; environmental pollution reduction; and urban rehabilitation and development.

However, the city’s budget can meet 20 percent of the demand; accordingly, it is a bug challenge for the city in the net time.
The meeting is a real success with eight PPP projects which asked for loans of VND26 trillion. It is hoped that signed agreements will resolve the financial shortage problem and give incentive to investors as per PPP form in the future, said Chairman Phong.
Director of the Department of Investment and Planning Su Ngoc Anh said that so far the city has signed 23 projects with total investment of VND71,127 billion. Of which, there are 17 transport projects, three infrastructure projects, two environmental projects and one cultural project.
Along with these, the city is implementing 130 other projects with total estimated investment of VND395,847 billion.
The Department of Investment and Planning’s website will inform PPP projects including investment law , index of projects which the government is calling for investment and PPPP project models.


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