Speaking at the event, Deputy Director of the HCM City Department of Planning and Investment Tran Anh Tuan said the city needs over 326.5 trillion VND (16.2 billion USD) to achieve socio-economic development goals for the 2016 – 2020 period. Meanwhile, the State budget only meets 52 percent of the total demand, equivalent to 171.8 trillion VND (7.4 billion USD).
He said the city will refine the legal framework on PPP investment, offer incentives, pool land and housing resources for the effort in the near future. It will also build a new portfolio and launch PPP projects on wastewater treatment and health care.
According to a survey of local infrastructure development and public services, 23 expanded PPP projects are being carried out in the city.
Among 294 projects calling for capital, 10 promising projects have been chosen, including Nguyen Tri Phuong hospital construction, underground parking lot at Hoa Lu stadium, waste-to-energy project in Phuoc Hiep commune, Cu Chi district.
Hashimoto Hidenori from JICA said apart from traditional official development assistance (ODA), JICA now offers another financial tool to develop infrastructure with the participation of the private sector, namely the Private Sector Investment Finance via lending or capital contribution.
Partners could borrow 10 – 150 million USD depending on each project for 20 years and pay every six months. JICA will also join projects as a minority investor with a maximum capital contribution of 25 percent out of the total.