Illustrative photo (source: VNA)

These projects include a North-South road worth VND 18 trillion (USD 792 million) and Nguyen Tat Thanh street worth VND 4.6 trillion (USD 202.4 million).

According to the city's authorities, participating banks have signed a loan agreements for eight projects, which worth a total of VND 26 trillion (USD 1.1 billion) under the public–private partnership (PPP) investment mode.

Loans for the eight projects had created a push for future projects, as the city's budget is limited, said Chairman of the city People’s Committee Nguyen Thanh Phong.

Between 2006 and 2020, investment in the city’s infrastructure is estimated at VND 850 trillion (USD 37.5 billion), but the Government can only sponsor one fifth of it.

In the context of growing public debt and the Government’s financial constraints, PPP is therefore an optimal solution for the lack of funding for infrastructure.

Around 153 projects have been carried out under the PPP mode in Ho Chi Minh City, with total investment value of VND 451 trillion (USD 19.9 billion), of which 23 projects ( total value of VND 71 trillion or about USD 3.1 billion) have been completed, and another 130 projects worth VND 380 trillion (USD 16.72 billion) are being carried out.

Pham Phu Quoc, Director of the Ho Chi Minh City Finance and Investment State-owned Company (HFIC), said that HFIC had sponsored 152 infrastructure projects in the city, valued at a combined VND 25 trillion (USD 1.1 billion).

It has also seeked funding from local government bonds, which worth VND 26.8 trillion (about USD 1.1 billion), he added.

Upgrading old buildings and building new ones are part of the city’s modernization plan.

At least 474 old buildings were built before 1975. Since the beginning of 2016, 1,592 households in four old buildings have been relocated.

The People’s Committee will be in charge of making decisions on relocating residents who live near canals to other areas and upgrading infrastructure.

To effectively handle the seven “breakthrough” programs that are key to the city’s development during the 2016-20 period, around VND 850 trillion will be needed.

Following a 2015 Government decree on PPP investment, the city has seen huge successes in attracting investment, which has helped resolve a number of serious problems related to transport, the environment and flooding./.

( VNF )