Foreign banks keen on infra projects in HCM City
SOUTH KOREAN and Japanese banks have expressed interest in providing capital for infrastructure projects in Ho Chi Minh City.
Hong Young-pyo, vice chairman of the Export-Import Bank of Korea (KEXIM), said his bank was interested in funding infrastructure and transport projects in Vietnam, particularly in Ho Chi Minh City, at a meeting on Tuesday with Le Van Khoa, vice chairman of the Ho Chi Minh City People’s Committee.
KEXIM wants to fund urban railway route No 4b-1 (to Tan Son Nhat International Airport) and Phase 2 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.
Hong said his bank was also interested in investing or |providing capital for other infrastructure projects in Ho |Chi Minh City, such as building and transfer of technology to operate urban railway routes and the smart traffic operation centre.
Lauding KEXIM’s interest, Khoa said Ho Chi Minh City wanted 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 from the South Korean government’s Economic Development Cooperation Fund, Khoa said.
He has also aske the bank to assist Ho Chi Minh City in getting preferential loans from multilateral credit organisations such as the Asian Development Bank and the World Bank to implement Phase 2 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 the Bank of Tokyo-Mitsubishi UFJ’s Ho Chi Minh City branch, that the city was looking for investment in infrastructure, transport, wastewater treatment and flood prevention.
In response, Tetsuya said his bank was keen to provide capital for key projects.
The meeting included representatives from the city’s departments and agencies and was aimed at increasing cooperation and getting updates on legal regulations and procedures for acquiring funds.
