VietNamNet Bridge - A number of infrastructure projects under the BT (build, transfer) mode, or exchanging land for infrastructure, with total capital of tens of trillions of dong have been implemented over the past few years. 

According to the HCMC Planning & Investment Department, 23 BT projects have been signed so far with total investment capital of VND71.127 trillion. This includes 17 transport, three technical infrastructure, two environment and one culture/society projects.

Meanwhile, 130 other projects with investment capital of VND395 trillion, including 93 urban area development projects, are under preparation. 

According to the HCMC Planning & Investment Department, 23 BT projects have been signed so far with total investment capital of VND71.127 trillion. This includes 17 transport, three technical infrastructure, two environment and one culture/society projects.

Transport infrastructure is the sector that attracts investments the most. Eighteen infrastructure projects are being implemented in HCMC under the BT and BOT mode, capitalized at VND59 trillion.

These include the project on building four major roads in Thu Thiem urban area with total investment capital of VND12 trillion, the VND10 trillion project on combating flood tide and VND3.1 trillion Thu Thiem 2 Bridge.

The HCMC authorities, in a document to MPI last September, said the city plans to exchange 16 land plots in the city for the Thu Thiem 4 Bridge which links districts 7 and 2. The project is estimated to cost VND5.2 trillion.

The investor has proposed to implement the Belt Road No 2 project (from Pham Van Dong street to Go Dua intersection in Thu Duc district) under the BT mode with capital of VND1.134 trillion.

In 2015, a series of large-scale road BT projects were drawn up, including the 7.5 kilometer road section (from Nguyen Van Linh street to Ba Chiem Bridge) on the North-South backbone route. The project has huge investment capital of VND8.47 trillion, including expenses for site clearance.

Analysts said BT is the favorite investment model for investors because they can approach land plots through the implementation of projects. 

Many investors raised questions about ‘exchanging land for infrastructure works’ at a meeting between HCMC leaders and infrastructure developers in June.

HCMC Vice Mayor Le Van Khoa said the amount of land reserved to pay to the investors implementing BT infrastructure projects is shrinking. 

Therefore, it is necessary to check the land fund and classify land plots. Only investors implementing important and urgent projects will be paid with land plots they want.

Meanwhile, HCMC’s Mayor Nguyen Thanh Phong said the land in the central area and Thu Thiem has run out and investors need to seek land plots in other districts.

In related news, at the meeting on October 30, Phong said that HCMC has postponed the licensing of BT projects until a new procedure on BT project management is set up.

Relevant agencies and investors have been asked not to make any proposals related to BT projects for now.

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