HCMC chairman calls on citizens to purchase bonds for metro funding
Ho Chi Minh City chairman Phan Van Mai has urged residents to buy bonds to help finance the city’s US$36 billion urban metro network, aimed at building 183 kilometers of rail by 2035.
« This is a significant project that needs public support. With the strength of our people, we can achieve great things, even projects worth hundreds of billions of dollars, » Mai said at a meeting with delegates from the Vietnam Fatherland Front Committee, which acts as the people’s representatives to protect their legal rights and interest, on Thursday.
Under a master plan, HCMC intends to develop 183 kilometers of metro lines by 2035, with an estimated capital requirement of $36 billion. Mai highlighted that the city is authorized to issue metro bonds and expressed optimism that citizens would invest in these bonds to support the project.
The city government plans to carefully assess land use along the metro routes and weigh the economic and social benefits to ensure a solid financial return for those who invest.
« While bank deposits might offer higher interest rates, buying bonds is a way to contribute to the city’s growth, » Mai added.
He emphasized that issuing metro bonds represents a groundbreaking solution to mobilize social resources for infrastructure investment and urban restructuring.
HCMC’s metro plan includes eight metro lines and three monorail lines, covering approximately 220 kilometers. Currently, only Metro Line No.1 (Ben Thanh – Suoi Tien) and Line No.2 (Ben Thanh – Tham Luong), spanning more than 30 kilometers, are under construction with official development assistance loans. The remaining lines are still in the planning stages.
The first metro line is in the trial phase and is expected to become operational later this year.
In its proposal for urban rail development, HCMC has requested 14 mechanisms from the central government, including provisions to raise capital for 200 kilometers of metro lines. The city also seeks approval to recover land near metro stations for urban development projects under the Transit-Oriented Development (TOD) model, pending approval from the National Assembly.
HCMC has also proposed the right to auction land use rights near the metro lines, which could generate $40 billion, part of which would be invested in the metro system.
Additionally, the city has asked the central government to allow the issuance of local government bonds, project bonds, or other fundraising methods, free from public debt limits. The interest rates on these bonds would be set by localities to ensure they align with debt repayment capacities.
By Le Tuyet – VnExpress.net – October 3, 2024