The Ho Chi Minh City administration is scratching its head over how to mobilize enough capital for 32 significant upgrades to local traffic infrastructure.

A total of 189 projects budgeted at VND318.7 trillion (US$14.1 billion) were proposed in the city’s plan to improve its roadways, all of which were initially set for completion by 2020.

So far, VND157 trillion ($6.9 billion) has been mobilized for 157 of the planned projects, meaning an unaccounted for VND162 trillion ($7.16 billion) needed for 32 of the projects is beginning to put authorities in a tight spot.

Several additional projects held over from the 2013-2015 period due to the absence of investors are also contributing to the city’s lengthy to-do list.

According to Bui Xuan Cuong, director of the municipal Department of Transport, given their limited financial resources, the agency is reviewing its current pending projects and plans to prioritize them based on significance.

In order to manage the situation, the transport department has asked the central government to let Ho Chi Minh City decide for itself which developmental projects will be funded by ODA (official development assistance) resources, Cuong continued.

Additionally, authorities have recommended that nearly VND67 trillion ($2.9 billion) from the equitization of state-owned enterprises be diverted to assist the southern hub in carrying out less significant projects.

The department also requested that the government provide over VND37.2 trillion ($1.6 billion) for essential infrastructure upgrades near Tan Son Nhat International Airport, Cat Lai Port, Hiep Phuoc Port, and other congestion hotspots.

It has also been recommended that the city develop its incentive policies in order to attract more investors for PPP (public-private partnership) projects.

Other solutions include the mobilization of investment from the private sector or loans through local credit institutions, Cuong elaborated.

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