08:29 (GMT +7) - Tuesday 22/09/2020

Vietnam Today

ADB to support HCMC's third ring road

Released at: 14:00, 22/12/2016

ADB to support HCMC's third ring road

Photo: nhadatgiaodich

Transaction advisory services to enable leveraging of private investments.

by Linh San

The Asian Development Bank (ADB) has signed an agreement with the Ministry of Transport (MoT) to provide transaction advisory services for Ho Chi Minh City’s Third Ring Road project.

The agreement was signed by Deputy Minister of Transport Nguyen Ngoc Dong and Mr. Eric Sidgwick, ADB’s Country Director for Vietnam.

ADB’s Office of Public-Private Partnership will support MoT in the development of a bankable public-private partnership (PPP) structure for the project to enable the leveraging of private investments.

“There is a need to increasingly mobilize resources from the private sector and better coordinate project preparation to develop bankable PPP projects in Vietnam,” Mr. Sidgwick said. “A greater role for PPPs should be considered for infrastructure projects and impediments to the development of PPP transactions should continue to be identified and addressed.”

This assistance will complement the government’s ongoing project preparation activities supported by ADB and thereby promote the optimal use of public and private sector investment.

Ho Chi Minh City is the country’s major economic hub, serving key industries and a growing population. Roads around the city are heavily congested, however, travel speeds are slowing and, as a result, transport costs are rising.

The third ring road, to be constructed at a radius of 25 kilometers from the city center, will facilitate the diversion of traffic and reduce congestion. It is critical for improving connectivity with surrounding cities and towns and reducing transport costs and travel times for the movement of passengers and goods in and around the city.

The ADB, based in Manila, is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth, and regional integration. Established in 1966, this month marks 50 years of development partnerships in the region. It is owned by 67 members; 48 from the region. In 2015 its assistance totaled $27.2 billion, including co-financing of $10.7 billion.

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