The document was signed by Deputy Minister Nguyen Ngoc Dong of the MOT 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 profitable public-private partnership (PPP) structure for the project to enable leveraging of private investments.
This assistance will supplement the government's ongoing project preparation activities supported by the ADB and thereby promote optimal use of public and private sector investment.
Sidgwick stressed the need to increasingly mobilise resources from the private sector and better coordinate project preparation to develop bankable PPP projects in Vietnam. The ADB official suggested that a greater role for PPPs should be considered for infrastructure projects, while impediments to the development of PPP transactions should continue to be identified and addressed.
As the country’s major economic hub Ho Chi Minh City serves key industries and the growing population, it is of concern that its roads are heavily congested, reducing travel speeds and leading to a rise in transport costs.
The third ring road, to be constructed at a radius of 25km from the city centre, is expected to facilitate the diversion of traffic and reduce traffic congestion in Ho Chi Minh City.
It is also 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 the city.
