CII borrows VND2.6 tril. to build water plant, expand road

Thien Thanh Sanitaryware joint company

CII borrows VND2.6 tril. to build water plant, expand road

HCMC Infrastructure Investment Joint Stock Company (CII) on August 26 signed two contracts to borrow VND2.65 trillion from the Vietnam Bank for Industry and Trade (VietinBank) to build a water plant in the city and expand a road in Ninh Thuan Province.

Specifically, VND960 billion will be invested in Tan Hiep Water Plant No. 2 which is due to start construction next month for completion in the first quarter of 2016. Once completed, it can supply 300,000 cubic meters of clean water a day for HCMC.

Truong Khac Hoanh, deputy general director of CII, said the water plant project requires a total cost of VND1,200 billion, to which CII contributes 43%, Saigon Water Corporation (Sawaco) 25% and Refrigeration Electrical Engineering Corp. (REE) 32%.

Clean water from the plant will be sold to Sawaco so that the company could supply residents in HCMC’s Binh Chanh District and in the west of the city.

Currently, CII is the investor of three water plants in the city, the other two being Thu Duc 3 and Kenh Dong.

The city’s water demand is forecast to rise to nearly 2.8 million cubic meters per day in 2015 and 3.8 million cubic meters in 2025.

Water used in the city is exploited from the Saigon River and Dau Tieng Reservoir with 0.95 million cubic meters per day, the Dong Nai River and Tri An Reservoir with nearly 1.5 million cubic meters, and groundwater with nearly 0.5 million cubic meters.

Meanwhile, the remaining VND1,688 billion will be used for expanding a section of National Highway 1 going through Ninh Thuan Province.

Le Vu Hoang, chairman of CII, said that his company will boost construction so that the road can be completed at the end of 2015 when other sections of National Highway 1 are also finished.

The project to expand this 37-kilometer section under the build-operate-transfer (BOT) format requires VND2,100 billion.

CII said it will collect toll on the section for over 22 years to recoup the investment capital.