HCMC to borrow US$800 million for three big projects next year

Ho Chi Minh City will borrow money from the World Bank totaling US$830 million to invest in three major projects on green traffic development, flooding risk management and development policy assistance program for the city budget.

According to the city People’s Committee’s report on debt payment in 2015 and plan next year, the green traffic development project has a total capital of US$155 million comprising US$142 million from the Official Development Assistance (ODA) Fund.

The flooding risk management project needs US$437 million including $400 million ODA capital. The third program will be implemented at US$200-250 million.
Investment capital demand from the city budget is expected to be from VND30-35 trillion (US$1.33-1.55 billion) a year.

The city will continue carrying out capital raising measures to ensure sufficient spending on development investment such as local bond issue and advance on the state treasury’s dormant capital.

HCMC’s total outstanding loans is estimated to approximate VND17,980 billion (US$798.76 million) by the end of this year. It has so far paid about VND6.8 trillion (US$302.09  million) of original loans and interest for eight projects that have been built and one under construction project.

Next year, the city will give priority to the use of the budget fund for debt payment before spending on basic construction. Total mature loans are expected to near VND4.6 trillion (US$204.35 million) including original loans and interest.

By Van Anh – Translated by Hai Mien

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