Deputy Minister of Transport Nguyen Ngoc Dong (R) and ADB Country Director Eric Sidgwick sign the document on December 21 (Photo: baogiaothong.vn)

Hanoi (VNA) – The Asian Development Bank (ADB) signed an agreement on December 21 to provide transaction advisory services to the Ministry of Transport (MOT) for Ho Chi Minh City’s Third Ring Road project.

The document was signed by Nguyen Ngoc Dong, MOT Deputy Minister of Transport and Eric Sidgwick, ADB’s Country Director for Vietnam.

Under the agreement, ADB’s Public-Private Partnership Office will support the 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.

“There is a need to increasingly mobilise resources from private sector and better coordinate project preparation to develop bankable PPP projects in Vietnam,” said 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 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 centre, will facilitate the diversion of through traffic and reduce traffic congestion in HCM 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. It was established in 1966 and is owned by 67 members with 48 from the region. In 2015, ADB assistance totaled 27.2 billion USD, including cofinancing of 10.7 billion USD.-VNA