Ho Chi Minh City is expected to reconsider projects under the public-private partnership (PPP) investment form meant to combat flooding and land subsidence and resettle people living along canals when new regulations for PPP come into effect.
The Vietnamese city has sought private partners for nearly 300 PPP projects, with the Thu Thiem Bridge No 4 being the latest.
Expected to cost 5.2 trillion dong ($2.25 billion), the bridge will connect Districts 2 and 7, easing traffic congestion in the Saigon South Area and boosting the development of the new Thu Thiem urban area.
PPP projects undertaken in the past include the Saigon Bridge and Phu My Bridge, expansion of the Hanoi Expressway and construction of the Tan Son Nhat-Binh Loi belt road, works that have helped smooth traffic and fostered socio-economic development.
City Department of Planning and Investment deputy director Tran Anh Tuan said PPP projects have also helped raise funds from the private sector for infrastructure development.
However, when the new regulations on PPP take effect, the city could face difficulties in raising funds for projects that would not have revenues or are financially infeasible, such as those for preventing flooding, controlling tides, building embankments, and resettling households living along canals or near government offices and cemeteries, he warned.
Besides, it would also be affected by the fact that PPP would not include investments on a build-transfer (BT) basis and would require investment in a project to be a minimum of 200 billion dong.
City People’s Committee deputy chairman Vo Van Hoan said PPP projects are aimed at infrastructure development and use of lands near those projects, but investors prefer lands in inner districts.
That is the reason why city authorities have asked relevant agencies to reconsider PPP projects, he explained.
BT projects whose construction is in progress would continue, he added.
VIET NAM NEWS/ASIA NEWS NETWORK