HCM City seeks PPP investment to ease budget difficulties
HCM City will seek more public-private partnerships (PPP) investment for local projects due to the city’s budget limitations.
The city is estimated to need around VND850 trillion (USD37.4 billion) to invest in infrastructure projects in the 2016-2020 period, however, the local budget can only account for 20% of the total investment.
The areas of environment, traffic and anti-flooding infrastructures need some VND500 trillion, but the budget can supply only 31%.
The information was given by Chairman of municipal People’s Committee Nguyen Thanh Phong at a conference on June 14 to review the city’s PPP investment in infrastructure and the plans for the 2017-2020 period.
The city has so far launched 153 PPP projects worth VND451 trillion (USD19.6 billion), 23 of them valued at VND71 trillion have been completed while others are in the preparatory phase.
During 2017-2020, the city will continue calling for investment in 116 PPP projects with capital expected to reach VND136.7 trillion.
According to Chairman Phong, the PPP model has brought about great benefits to the city, helping raise investment in the context of the city’s limited budget.
He asked the Department of Planning and Investment to build criteria for each type of PPP project to choose investors lawfully and ensure benefit balance among investors, management agencies and residents.
The city is estimated to need around VND850 trillion (USD37.4 billion) to invest in infrastructure projects in the 2016-2020 period, however, the local budget can only account for 20% of the total investment.
The city is estimated to need around USD37.4 billion to invest in infrastructure projects in the 2016-2020 period
The areas of environment, traffic and anti-flooding infrastructures need some VND500 trillion, but the budget can supply only 31%.
The information was given by Chairman of municipal People’s Committee Nguyen Thanh Phong at a conference on June 14 to review the city’s PPP investment in infrastructure and the plans for the 2017-2020 period.
The city has so far launched 153 PPP projects worth VND451 trillion (USD19.6 billion), 23 of them valued at VND71 trillion have been completed while others are in the preparatory phase.
During 2017-2020, the city will continue calling for investment in 116 PPP projects with capital expected to reach VND136.7 trillion.
According to Chairman Phong, the PPP model has brought about great benefits to the city, helping raise investment in the context of the city’s limited budget.
He asked the Department of Planning and Investment to build criteria for each type of PPP project to choose investors lawfully and ensure benefit balance among investors, management agencies and residents.
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