State needed to drive expressway projects
Government support measures are needed to encourage private sector participation in the development of expressways, writes Andrew Chan Yik Hong, a PricewaterhouseCoopers executive director in corporate finance leading its infrastructure, government and utilities practices in Malaysia, Thailand, Vietnam, Cambodia and Laos.
The development of road infrastructure, especially the expressway network, is essential for Vietnam to achieve rapid economic growth. The participation of the private sector in the development of expressways is one of the strategies promoted by the Government. However, most expressways do not have the required traffic density to be financially viable. The use of the various government support mechanisms should be utilised to fund this viability gap.
