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HCM City chases big money
Public-private partnerships (PPP) are one of the most effective ways to mobilise capital for infrastructure in HCM City, speakers said at a conference on Thursday.
"HCM City needs a huge amount of capital for investment to deal with urgent issues like transportation infrastructure, the environment, and human resources," Nguyen Thanh Tai, Vice Chairman of the HCM City People's Committee, said.
"In addition to official development Assistance (ODA) from foreign donors and the state budget, the city will mobilise capital via a new, promising PPP channel," Tai said, adding that the transportation infrastructure and environment were most urgent.
The Transport Department said VND300,000 billion (US$15 billion) was needed in the next five years for infrastructure projects.
The conference has also provided a list of 61 projects that call for investment in metro lines and monorail lines, roads and bridges, water supply system and dyke systems, among others.
"To achieve the average rate growth of 7-8 per cent per year in the next 10 years, Viet Nam needs to invest $100 to $150 billion in infrastructure such as transportation, electricity, water supply and environmental sanitation," said Dang Huy Dong, Deputy Minister of Planning and Investment.
The State budget could only meet half the needs, he said.
"To mobilise an enormous amount of capital in a fast and effective way, we need a PPP model."
PPP has been a successful model in many countries but is a new investment channel in Viet Nam.
"Every country has distinctive social and economic conditions, so Viet Nam will need its own PPP model," Dong said.
Dong said the government would create two or three pilot programmes initially to test the model, which requires highly skilled staff.
"The key to successfully mobilising capital via PPP is to build a healthy investment environment, with clear, specific and stable policies. Information is given to individuals and organisations that have an interest in and want to discover investment projects," Tai said.
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