|
Cash crunch forces City to put infrastructure projects on hold
Although HCM City needs an estimated US$2.5 billion a year for building infrastructure, it can only raise $700 million, the director of the city Department of Transport, Tran Quang Phuong, has said.
Phu My Bridge in HCM City, one of many infrastructure projects in the city, is delayed because of a lack of investment.
Under a master plan for its transport system approved by the Prime Minister, HCM City needs $30 billion by 2020, said Phuong.
But the budget, official development assistance, and private funds in the form of Build – Operate – Transfer and Build – Transfer together make up just $700 million, he said.
Only 30 to 40 per cent of that amount is invested in infrastructure projects, with the rest mainly used to pay compensation for lands acquired, he said.
Many vital work like parking lots and elevated roads are awaiting investors, Phuong said.
Even the massive public transport system that will include six metro lines, which has been seeking funds for many years, has yet to take off, he said. Only the Ben Thanh–Suoi Tien metro line has received funding from Japanese ODA and work has begun on a station in District 9.
He explained that transport projects failed to attract investors because it was difficult for them to recoup their investment.
Nguyen Thanh Thai, general director of Phu My Bridge BOT Joint Stock Company which is building a bridge in the city, said it was difficult for companies to borrow for investment because bank interest rates were too high.
Besides, the amounts needed were vast and beyond the capacity of local banks, he said.
Phuong said the department has closely studied the issue and made recommendations to the city administration.
VNN
|
