The Asian Development Bank (ADB) on Wednesday signed an agreement to provide transaction advisory services to the Ministry of Transport (MOT) for Ho Chi Minh City Third Ring Road project.
The agreement was signed by Vietnam’s Vice Minister of Transport, Nguyen Ngoc Dong, and ADB’s Country Director for Vietnam, Eric Sidgwick.
Under the agreement, ADB’s Office of Public-Private Partnership will support MOT in the development of a bankable public-private partnership (PPP) structure for the project to enable leveraging of private investments. This assistance will complement the government's ongoing project preparation activities supported by ADB and thereby promote optimal use of public and private sector investment.
“There is a need to increasingly mobilize resources from private sector and better coordinate project preparation to develop bankable PPP projects in Vietnam,” said Sidgwick. “A greater role for PPPs should be considered for infrastructure projects and impediments to the development of PPP transactions should continue to be identified and addressed.”
Ho Chi Minh City is the country’s major economic hub, serving key industries and growing population. However, roads around the city are heavily congested, travel speeds are slowing and, as a result, transport costs are rising. The third ring road, to be constructed at a radius of 25 kilometers from the city center, will facilitate the diversion of through traffic and reduce traffic congestion in the city. It is critical for improving connectivity with surrounding cities and towns, and reducing transport cost and travel times for the movement of passengers and goods in and around Ho Chi Minh City.
