HCM City seeks developers for nearly 300 PPP projects

Phu My, a cable-stayed bridge linking HCM City’s Districts 2 and 7, was built under PPP investment form. Photo courtersy of Mytour.vn.htm.

The city has sought private partners for nearly 300 PPP projects, with the Thu Thiem Bridge No 4 being the latest.

To cost VND5.2 trillion (over US$2.25 billion), the bridge will connect Districts 2 and 7, easing traffic congestion in Sai Gon South Area and boosting the development of the new Thu Thiem urban area.

PPP projects undertaken in the past include the Sai Gon Bridge and Phu My Bridge, expansion of the Ha Noi Expressway and construction of the Tan Son Nhat – Binh Loi belt road, works that have helped smooth traffic and fostered socio-economic development.

According to Tran Anh Tuan, deputy director of the city Department of Planning and Investment, 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 in the form of BT and would require investment in a project to be a minimum of VND200 billion.

Vo Van Hoan, deputy chairman of the city People’s Committee, 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.