Solutions to mobilize capital for infrastructure development in HCMC - Solutions to mobilize capital for infrastructure development in HCMC - Website Ho Chi Minh City
(HCM Cityweb) – On July 7, HCMC Department of Transport coordinated with HCMC Finance and Investment State-owned Company (HFIC) to organize a workshop entitled: “ Solutions to mobilize capital for infrastructure development in HCMC in 2016-2020” and to sign a set of rules to jointly mobilize capital for urban infrastructure.
At the workshop, General Director of HFIC Pham Phu Quoc said HFIC is HCMC’s major strategic public financial institution in mobilizing capital for infrastructure development and other important sectors. In 2010-2015, HFIC has funded 131 infrastructure projects in HCMC with total investment capital of VND 14,010 billion including 34 technical infrastructure projects, 32 health projects, 54 education projects and other 11 projects. According to Mr. Quoc, apart from traditional investment forms, HFIC has been strengthening cooperation with capable investors to implement infrastructure projects under form of Private-Public Partnership (PPP), of which a focus will be put on the list of public investment items approved by HCMC People’s Council and projects under the city’s 7 breakthrough programs.
Dr. Tran Du Lich said urban land in the process of urbanization is considered as “chicken laying golden eggs”, but lots of land has been loss, therefore, it is necessary to take full advantage of. In addition, the city has a quite big area of public land, it is important for the city to ask for active exploitation rights from the Central Government for urban infrastructure development. Many corporations and State-owned companies located in HCMC are in the process of equitization with big resources, it is essential for the city to ask the Central Government for the use of these resources for technical infrastructure development and improvement of livelihood of people.
According to Dr. Tran Du Lich, the city needs its own financial tool like HFIC’s model. The role of HFIC must be maximum brought into play, doing a good job in turning the State’s resources into capital to help mobilize other capital sources, playing the role of a manager using resources of equitized corporations to support HCMC. Dr. Tran Du Lich said the most important thing is that the Central Government needs to create breakthrough conditions on policies and common mechanisms for HCMC to promote its dynamism, creativity and to maximum mobilize every resource for comprehensive development.
Speaking at the workshop, Vice Chairman of HCMC People’s Committee Tran Vinh Tuyen requested HFIC to quickly build the scheme of mobilizing capital for urban infrastructure development. HFIC needs to continuously bring into play its role as a strategic investor of the city, a trailblazer in mobilizing every financial source out of State’s budget to serve the demands of infrastructure investment and development and key programs of the city in the coming time.