Ha Noi can offer more attractive terms to private investors in a new ring road—ADBI Dean - a podcast by Asian Development Bank Institute
from 2017-10-02T09:16:42
Ha Noi, the Vietnamese capital, is renowned for its congested traffic. The government wants to build a third ring road around the city.
But it doesn’t have enough money for such a major project, with two other ring roads already under way. Some of the construction is being funded on a BOT basis—build, operate, transfer, whereby the investor constructs and maintains the ring road and gets the toll revenue for a certain period before handing it back to the public—and official development assistance from the Japan International Cooperation Agency.
However, private investors aren’t much interested because the expected returns on investment are too low. How can the government increase the returns to make investment more attractive to private companies?
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