Vietnamese mega-cities scouring for mega-funding on infrastructure drive
Hanoi and Ho Chi Minh City are seeking funds worth a combined VND105 trillion (US$4.6 billion) to invest in roads and bridges in an attempt to ease traffic jams and protect the environment.
Vietnam's infrastructure is struggling to keep up with economic growth of more than 6 percent a year, while its public debt has already exceeded a ceiling set by the country's legislative body.
Hanoi is looking to borrow VND53 trillion (US$2.3 billion) through the Asia Development Bank (ADB) and Japanese Official Development Assistance (ODA) to develop key metro lines, the city said in a proposal to the planning and investment ministry. Approval is still pending.
The funds will pay for two metro lines which require a total investment of US$2.7 billion, a large part of which will come from the ADB and Japanese aid, while the rest will be covered by the city's budget.
Ho Chi Minh City is also looking for about VND52 trillion to resolve the city's chronic traffic congestion and flooding, the municipal government said.
At least VND24 trillion will be allocated to flood management projects, including renovation work on key canals and low-level streets, while another VND8 trillion would go to the environmental sector, based on the city's proposal to the the ministry.
The city said it will prioritize the allocation of ODA funds for the rehabilitation of its main canals and a city-wide sanitation campaign.
Ho Chi Minh City needs VND500 trillion to invest in urban infrastructure between now and 2021, and a similar amount for the next five years, according to local consultancy firm the HCM City Financial Investment Company.