Foreign banks eye HCM City’s infra projects

Update: November, 23/2016 - 15:25
HCM City is looking for investment in infrastructure, transport, wastewater treatment and flood prevention. — Photo
Viet Nam News

HCM City — Banks from South Korea and Japan have expressed interest in providing capital for infrastructure projects in HCM City. 

Hong Young Pyo, vice-chairman of South Korea’s Export-Import Bank (KEXIM), said his bank is interested in funding infrastructure and transport projects in Việt Nam, particularly in HCM City, at a meeting on Tuesday with Lê Văn Khoa, vice-chairman of HCM City People’s Committee.

KEXIM wants to fund urban railway route No 4b-1 (to Tân Sơn Nhất International Airport) and phase two of urban railway route No 5. The pre-feasibility studies for both projects have been completed and the reports are expected to be released next year.

Pyo said his bank was also interested in investing or providing capital for other infrastructure projects in HCM City, such as building and transfer of technology to operate the urban railway routes and the smart traffic operation centre. 

Lauding KEXIM’s interest, Khoa said HCM City wants the bank to complete legal procedures soon and disburse capital so that feasibility studies for the projects can start in the first quarter of 2017. 

KEXIM should also consider providing additional official development assistance (ODA) from the South Korean government’s Economic Development Cooperation Fund, Khoa said.

He has also requested the bank to assist HCM City in getting preferential loans from multilateral credit organisations like the Asian Development Bank and the World Bank to implement phase two of urban railway route no. 5, after the Korea International Cooperation Agency Team completes its final report next month. 

In another meeting on the same day, Khoa told Senda Tetsuya, general director of Bank of Tokyo-Mitsubishi UFJ’s HCM City branch, that the city is looking for investment in infrastructure, transport, wastewater treatment and flood prevention. 

In response, Tetsuya said his bank is keen to provide capital for key projects. The meeting included representatives from the city’s departments and agencies and was aimed at increasing co-operation and getting updates on legal regulations and procedures for acquiring funds. — VNS