VietNamNet Bridge – Private investors can all see great
potentials in infrastructure projects. However, a lot of things still need to
be done to turn the potentials into reality.
Le Quoc Binh, General Director of
the HCM City Infrastructure Investment Joint Stock Company (CII), when asked
about the opportunities in infrastructure projects, said there are numerous
projects, but not all of them can be suitable to enterprises.
“You need to be sure that you can
make profit and you can find the output for the projects,” he said.
Analysts have reminded the case
of Phu My Bridge project developed by the Phu my Bridge BOT Company. To date,
there are still problems with the Vanh Dai Dong Road (east belt), linking the
interprovincial highway No. 25B and the Binh Thanh crossroad, thus making it
difficult for the investor to collect fees to recover the investment capital.
Andy Ho, Managing Director of
VinaCapital, a fund management company, said of the four funds being managed by
VinaCapital, VNI, or the Vietnam Infrastructure Ltd has been facing biggest
difficulties. VNI has the discount rate of the NAV (net asset value) on fund
certificate at 44 percent.
A part of the fund’s value has
been lost due to the investments in the shares of the listing infrastructure
development companies. The managing director also said the toughest investment
deal is the one in the Phu My Bridge. The fund is now trying to withdraw
capital from some projects to get money back to pay to investors.
Analysts, while believing that
infrastructure items prove to be a profitable investment field, said that the
“playing field” just fits powerful players with long term powerful financial
resources, because it will take investors a long time to take back the
investment capital.
At present, most of the private
infrastructure investors are multi-field enterprises, which have the incomes
from different sources, thus allowing them to use the profits gained from short
term investment deals for developing long term infrastructure projects.
Bitexco is a typical example. It
has been successful with the 1A Highway and the byway in Thanh Hoa City under
the mode of BOT (build, operation, transfer). And is has become the first
private investor undertaking the project on the Dau Giay – Phan Thiet highway
under the mode of PPP (private public partnership) with the support by the
World Bank.
However, analysts said there are
very few enterprises like CII or Bitexco, which have their own advantages in
capital or sources of income (setting up stations to collect fees).
In fact, executing infrastructure
projects has caused headaches to many real estate developers, while many of
them have to slacken the project implementation.
PPI, for example, planned to
increase its chartered capital and raise funds to serve the development of road
projects by exploiting the huge land fund (13 projects, 377 hectares) in HCM
City, Long An and Binh Duong. However, since the real estate market has got
frozen, it would be very difficult for PPI to fulfill its plan.
In 2011, when starting the BT (build,
transfer) project on building the inter-provincial highway No. 830--linking HCM
City and Long An province, PPI once thought of exploiting the land fund along
the project in order to raise funds for the BT project implementation
(capitalized at 2.6 trillion dong). However, it would be not easy for it to
make the plan come true.
Regarding the Dau Giay – Phan
Thiet project, the capital for the project would be from the private economic
sector and the funds to be raised by the Government. Bitexco would be the first
investor, while the second one would contribute the remaining 40 percent of
capital through international bids.
DNSG
Business & Investment Opportunities
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