Diversifying Investment Resources for Transport Development

Mr Dang Van Minh, Director of Transport Department of Quang Ngai province, shared that the conception of mobilising capital for Quang Ngai’s transport infrastructure development has changed towards the direction of a market economy, and being appropriate to provincial conditions and objects exploiting and using the infrastructure. The investment in transport infrastructure development must base on exploiting effectiveness; it has to identify clearly which constructions should be financed by the state budget, which constructions should be invested both by the state budget and people; which constructions enterprises should invest to manage, exploit and make profits; which constructions must be invested from diverse financial resources to promote investment effectiveness.

 

Particularly, to develop provincial roads systems, the province mainly mobilises capital from local resources, capital from targeted programmes, from credit programmes of the Government for transport development in rural areas, programmes of constructing new rural areas; from ODA capital of WB, ADB, DFID, JBIC, JICA. The province also does researches to apply public – private partnership such as PPP, BOT, BT, BTO and exploits land funds to raise funds for constructing roads of communes, districts, as well as constructing urban transport and industrial zones, economic zones, coastal roads. Moreover, the province may issue local government bonds, construction bonds to invest in major and urgent buildings. Mr Minh proposed: “To support farmers, provincial People’s Committee should propose the Government to approve of constructing key roads connecting with fields and producing areas; at the same time approve of constructing internal roads to create favourable conditions for farmers in producing, transporting and selling products. All of these activities will contribute to the success of national targeted programme on constructing new rural areas in the period of 2011 – 2020”.

From now to 2010, transport sector of Quang Ngai province will put together all resources to implement Programme 28 – Ctr/TU dated 7th September 2012 of Provincial Party’s Committee of Quang Ngai. Accordingly, the transport sector will invest in several large scale projects like: completing the coastal road of Dung Quat – Sa Huynh; project of Tinh Phong road – Dung Quat port; southern road of the Tra Khuc River; the project improving and widening 1A national highway through Quang Ngai province and some other projects.

As for airport, national roads and highways, seaports, bus stations, domestic water ports, Quang Ngai province will create favourable conditions to attract investments from every economic sector with various measures, especially in form of PPP, BOT, BT, BTO. The province actively coordinates with the Ministry of Planning and Investment, Ministry of Transport, Ministry of Finance and other state organisations to propose the Government to review, promote ODA to construct airports, national roads, national highways.

 

The diversification of capital resources plays an important part and timely meets the socio – economic development of the province, especially in this difficult period. However, according to Mr Minh, due to the economic recession both domestically and internationally, the number of investment projects in form of BOT, PPP, BP in Quang Ngai province is still low because banks are applying tightening policies and investment attraction mechanism is not strong enough to encourage investors to put their money in projects of developing transport infrastructure.