Photo: Duc Anh
Southern city prepares list of key transport projects requiring investment capital.
The Ho Chi Minh City People’s Committee has recently submitted a portfolio of transport projects to the Ministry of Planning and Investment (MPI) to plan for mobilizing investment capital under the public-private partnership (PPP) form.
Accordingly, major projects include the construction of Monorail Line No. 3, the expansion of National Highway No. 22 and the construction of National Highway No. 5, with investment capital totaling $6.2 billion, of which the State budget will account for around $1.7 billion and PPP $4.5 billion.
Monorail Line No. 3 requires investment capital of more than $380 million, the expansion to National Highway No. 22 (at a length of 58 km and connecting Ho Chi Minh City and Tay Ninh province with Cambodia) requires $584 million, and the construction of National Highway No. 5 nearly $910 million.
In transport infrastructure the city is deploying and has recently finished five key projects, including Urban Railway Line No. 1 (Ben Thanh - Suoi Tien) with total investment capital of more than $2.1 billion, in which ODA will cover $435 million, and Urban Railway Line No. 2 (Ben Thanh - Tham Luong), with nearly $1.2 billion, of which ODA will cover around $455 million.
Ho Chi Minh City’s environmental sanitation project (phase 2) requires total investment of $500 million, with $435 million coming from ODA. The completed East-West Highway cost nearly $682 million, with ODA covering $455 million.
Finally, the environmental improvement project in Tau Hu - Ben Nghe - Doi - Te (second phase) has total investment of $500 million, of which ODA covers $447 million.
Total investment capital for these projects totals more than $5 billion, of which ODA loans will account for nearly $4.2 billion, with the remainder coming from the city’s budget.
Regarding further capital requirements for the development of transport infrastructure, according to Mr. Tran Du Lich from the Ho Chi Minh City Institute of Economics by 2020 the city will need $22.7 billion and over the next ten years up to $46 billion.
The city must socialize these projects, with public land resources in exchange for infrastructure investment. It should also reach out to large corporations, State-owned enterprises and investment companies for funding.