Vingroup is offering to put up the entire US$4 billion cost of a high-speed metro line between downtown HCMC and coastal district Can Gio.
Vietnam’s biggest private company wants to develop it through a public-private partnership, a proposal it made to city authorities shows.
The company, controlled by Vietnam’s richest man Pham Nhat Vuong, will arrange the funding for the construction in exchange for operational permits.
Private investors can raise funds through bank loans and bond and equity issuances, which enhances financial flexibility for large infrastructure projects like this, the company said.
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Can Gio District, Ho Chi Minh City. Photo by VnExpress/Thanh Tung |
Vingroup highlighted its track record in completing projects of similar size.
The proposed metro line will run over 48.5 kilometers from Nguyen Van Linh Avenue in District 7 to the Can Gio, renowned for its mangrove forests and tourism potential.
Vingroup eyes speeds of up to 250 kilometers per hour for the metro to boost traffic and business in Vietnam’s biggest city.
Can Gio, around 50 kilometers to the southeast of downtown, is home to an urban area Vingroup is developing on nearly 2,900 hectares for a population of 230,000 with a price tag of $9 billion.
The proposal needs approval from city authorities.
In January Prime Minister Pham Minh Chinh said the city should take up Vingroup’s proposal, adding that private firms should be tasked with major projects to boost economic development.
HCMC plans to add six metro routes by 2035 to the existing Ben Thanh – Suoi Tien line and three more by 2045 at an estimated total cost of $67 billion.
