HCMC – Phu My Construction Investment Corporation (PMC), investor of Phu My Bridge, has sent a document to the HCMC government to seek financial support, otherwise it wants to return the work to local government due to debt.
By Anh Quan - The Saigon Times Daily
Phu My Bridge - Photo: Anh Quan HCMC – Phu My Construction Investment Corporation (PMC), investor of Phu My Bridge, has sent a document to the HCMC government to seek financial support, otherwise it wants to return the work to local government due to debt.
PMC chairman Nghiem Sy Minh in the document said only around 5,000 vehicles use the bridge per day, which means toll collection is too modest to pay debts. Capital for the project has been increased from VND1.8 trillion to VND3.4 trillion while forex rates and bank lending rates have soared in recent years, thus inflating the developer’s debts.
PMC suggested the city either extend the loan borrowed from HCMC Finance and Investment State-owned Company (HFIC) to 15 or 20 years instead of 10 years currently or lend it VND1 trillion to pay debts. Otherwise, PMC will hand over the bridge to local government.
PMC earlier suggested collecting tolls from motorbikes and suspending the toll station on Nguyen Van Linh Street to increase its revenue, but it was rejected. PMC added that many of its large shareholders are considering withdrawing from the company due to the unprofitable project.
Phu My Bridge was inaugurated in September 2009 to connect districts 2 and 7 while toll collection began on April 1, 2010. The bridge was erected to ease traffic pressure on the Saigon Bridge through the city center.