HCM City (VNS/VNA) -Lack of funds is the main reason for the slow progress of several majortransportation works in Ho Chi Minh City, the municipal People’s Council heardat a session last week.

Tran Quang Lam, Director of themunicipal Department of Transport, said in the past five years the transportsector has been developing well, contributing significantly to socio-economicdevelopment. 

The average road area hasreached 2.2km per square kilometre of land, and transportation works accountfor 12.2 percent of urban construction in terms of area, he said.

But most major works are notcompleted on schedule, he admitted.

The city has been unable tomobilise an amount of 372 trillion VND (over 16 billion USD) required for them.

Since 2017 no build- transfer (BT) projects have been undertaken due to problems related topaperwork, he said.

The city said it had attractedinvestments for BOT (build - operate - transfer) projects to upgradea number of major transport works such as National Highway No 1A, NationalHighway No 22, Ung Van Khiem Street, and Binh Trieu Bridge.

“But these projects have beensuspended under the National Assembly’s Decision No 437 [on policies oninvestment in transportation works],” Lam said.

The city administration hasmapped out major programmes to eliminate the hurdles faced by the city indeveloping transport infrastructure.

Lam said these include theissue of Decision No 27 on land acquisition and clearance procedures.

Priority should be given toBelt Road No 2 and No 3 and highways to connect HCM City with provinces inthe Southern Focal Economic Zone, and widening National Highway No 1A, No50, No 22, and No 13, he said.

Public transport must bedeveloped and private vehicles need to be restricted, he said.

Studies in other countries showthat even with good infrastructure urban traffic problems could not be solvedwithout efficient management by authorities, he said.

The funds required fortransport infrastructure could be raised through land auctions, he said.

The city authorities are alsoconsidering collecting fees for the use of infrastructure at ports, he said.

If approved, this could fetch 3trillion VND a year, he estimated.

The money could be used toinvest in infrastructure at ports such as Hiep Phuoc, Cat Lai and Long Binh inDistrict 9, he added./.