illustrative image (Source: VNA) HCM City (VNA) – Ho Chi Minh City plans to put projects underthe Build-Transfer (BT) investment model under more scrutiny by auctioning landinstead of offering it in exchange for infrastructure.
“Land for BT projectsmust be carefully calculated. The city’s Department of Natural Resources andEnvironment will publicly announce the available land that can be used for BTprojects,” said Nguyen Thanh Phong, Chairman of the municipal People’s Committee.
Phong spoke at a seminaron BT projects and solutions needed to create a land fund for infrastructuredevelopment on November 7.
Speaking at the seminar,Dr Huynh The Du from Fulbright University pointed out that most BT projectswere implemented by exchanging land for infrastructure and choosing contractorswithout public bidding.
In addition, investorsmostly lean on capital from banks, according to Du.
“We should limit thenumber of BT projects with the investment model of land exchange forinfrastructure. Instead, authorities should issue bonds for construction andbids for use of land-rights,” he said.
“The BT model should beused when we have a ‘clean’ (with no buildings or infrastructure on it) landfund, and bids for the land must be done independently. Money from the saleshould be used to pay for the project,” he added.
Su Ngoc Anh, Director ofthe city's Planning and Investment Department, said a Government decree regulateddifferent models of infrastructure construction, but investors and governmentagencies still preferred to use land exchange in the BT mode.
“But, in fact, the landfund for infrastructure exchange is limited, and there are also cumbersomeprocedures. In addition, compensation to households that have to move to makeway for the infrastructure project can be complicated,” Anh said.
Hoang Manh Phuong,deputy head of the Ministry of Planning and Investment’s Legal FrameworkDepartment, said the ministry planned to adjust the decree on the law regardingBT investments.
Tran Duc Thang, head ofthe Ministry of Finance’s Public Asset Management Department, said there weresix laws regulating BT projects (investment, land, public assets, state budget,bidding and public investment laws).
“There are too many lawson this, and it results in delays and many challenges for BT projects. The landfund is limited, and expenditures for compensation are very high. All of thisleads to inefficiency in investment,” he added.
“There are manyprocedures for a BT project, but the most important thing for a BT project ishow to repay the investor when the land is not ‘clean’ (when there is somethingon it),” Bui Xuan Cuong, Director of the Transport Department, said.
Le Hoang Chau, Chairmanof the HCM City Real Estate Association, said that it was common to seeinvestors using the BT model for land plots in good locations.
“This can easily cause anegative impact because investors and bidders often have only 10 percent ofownership capital, and 90 percent of their capital is from banks,” he said.
Chau said he stronglysupported public bidding as it would give international and local investors anopportunity to bid on infrastructure and construction projects. -VNA
In addition, investorsmostly lean on capital from banks, according to Du.
“We should limit thenumber of BT projects with the investment model of land exchange forinfrastructure. Instead, authorities should issue bonds for construction andbids for use of land-rights,” he said.
“The BT model should beused when we have a ‘clean’ (with no buildings or infrastructure on it) landfund, and bids for the land must be done independently. Money from the saleshould be used to pay for the project,” he added.
Su Ngoc Anh, Director ofthe city's Planning and Investment Department, said a Government decree regulateddifferent models of infrastructure construction, but investors and governmentagencies still preferred to use land exchange in the BT mode.
“But, in fact, the landfund for infrastructure exchange is limited, and there are also cumbersomeprocedures. In addition, compensation to households that have to move to makeway for the infrastructure project can be complicated,” Anh said.
Hoang Manh Phuong,deputy head of the Ministry of Planning and Investment’s Legal FrameworkDepartment, said the ministry planned to adjust the decree on the law regardingBT investments.
Tran Duc Thang, head ofthe Ministry of Finance’s Public Asset Management Department, said there weresix laws regulating BT projects (investment, land, public assets, state budget,bidding and public investment laws).
“There are too many lawson this, and it results in delays and many challenges for BT projects. The landfund is limited, and expenditures for compensation are very high. All of thisleads to inefficiency in investment,” he added.
“There are manyprocedures for a BT project, but the most important thing for a BT project ishow to repay the investor when the land is not ‘clean’ (when there is somethingon it),” Bui Xuan Cuong, Director of the Transport Department, said.
Le Hoang Chau, Chairmanof the HCM City Real Estate Association, said that it was common to seeinvestors using the BT model for land plots in good locations.
“This can easily cause anegative impact because investors and bidders often have only 10 percent ofownership capital, and 90 percent of their capital is from banks,” he said.
Chau said he stronglysupported public bidding as it would give international and local investors anopportunity to bid on infrastructure and construction projects. -VNA
VNA
