The Asian Development Bank (ADB) has agreed to provide transaction advisory services to the Vietnamese Ministry of Transport (MOT) for Ho Chi Minh City third ring road project.

According to the agreement, ADB’s office of public-private partnership (PPP) will support the MOT in the development of a bankable PPP structure for the project, which would enable more private investments.

“There is a need to increasingly mobilise resources from the private sector and better coordinate project preparation to develop bankable PPP projects in Vietnam."

ADB Vietnam country director Eric Sidgwick said: “There is a need to increasingly mobilise resources from the private sector and better coordinate project preparation to develop bankable PPP projects in Vietnam.

“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.”

The assistance offered by ADB will complement the Vietnamese Government's ongoing project preparation activities, as well as promote optimal use of public and private sector investment.

Ho Chi Minh is reported to be country’s major economic hub, serving key industries and a growing population.

Roads around the city are heavily congested, leading to reduced travel speeds and increasing transport costs.

The construction of the third ring road will facilitate the diversion of through traffic and reduce congestion.

The project is very important for the region as it can improve connectivity with surrounding cities and towns, as well as reduce transport costs and travel times.

Image: ADB supports third ring road project in Vietnam. Photo: courtesy of Asian Development Bank.