PM: Non-State capital critical to transport infrastructure projects

09:02 | 17/03/2017 Society

Prime Minister Nguyen Xuan Phuc demanded the Ministry of Transport (MoT) and relevant ministries to remove all obstacles, including existing mechanisms and policies, to mobilise capital from all possible sources for transport infrastructure projects.

PM Nguyen Xuan Phuc speaking at the working session (Credit: VGP)

He made the remark at a meeting with key officials of the MoT on March 16.

According to the PM, the State must provide support and create necessary institutions, mechanisms and favourable conditions to attract investment in transport infrastructure.

He assigned the MoIT to build specific mechanisms for developing highways and drawing investment in the Public-Private Partnership form, while seeking more capital from ODA (Official Development Assistance).

The PM also called attention to other modes of transport, such as waterway to reduce the dependence on land transport.

He required the Vietnam Airport Corporation to invite investors to build airports and other infrastructure facilities, noting that the State only holds ownership of certain airports and a number of essential facilities.

The MoT reported that total capital needed for transport infrastructure development in 2016-2020 is nearly VND953 trillion (US$42.7 billion) but the ministry has been allocated only VND188 trillion (US$8.43 billion).

A representative of the Vietnam Airport Corporation said the upgrading of airports needs an average VND5.5 trillion (US$247 million) each year from now to 2020.