HANOI, VIET NAM (21 December 2016) — The Asian Development Bank (ADB) today signed an agreement to provide transaction advisory services to the Ministry of Transport (MOT) for Ho Chi Minh City Third Ring Road project.
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.
The agreement was signed by Nguyen Ngoc Dong, Viet Nam’s Vice Minister of Transport and Eric Sidgwick, ADB’s Country Director for Viet Nam.
“There is a need to increasingly mobilize resources from private sector and better coordinate project preparation to develop bankable PPP projects in Viet Nam,” said Mr. 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 a 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.
ADB, based in Manila, is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth, and regional integration. Established in 1966, ADB in December 2016 will mark 50 years of development partnership in the region. It is owned by 67 members—48 from the region. In 2015, ADB assistance totaled $27.2 billion, including cofinancing of $10.7 billion.