» » $1.1bil bonds issue to build new urban area

The HCM City People's Committee has approved the issue of bonds worth VND20 trillion (US$1.12 billion) for developing the Thu Thiem new urban area in District 2.

The People's Committee and the HCMC Urban Development Investment Fund will issue the three and five year bonds that will carry fixed interest rates that will be paid annually.

The bond issuance will be implemented in two phases: VND14 trillion will be issued between now and 2010, and the remaining VND6 trillion in 2010.

The money raised from the bonds will be used to build technical infrastructure facilities in the Thu Thiem new urban area.

The Thu Thiem Urban Area project managers are actively calling for domestic and foreign companies to invest in major projects including the Observation Tower complex, the northern residential complex, the eastern high-grade hotel complex, the office building complex along the East-West Highway and the area's multi-functional centre.

The city will collect money from investors to repay bond buyers on schedule.

The Thu Thiem new urban area project, which started implementation in 1996, is located in the peninsular of the same name, opposite District 1 across the Sai Gon river. The area comprises the An Khanh, Thu Thiem, An Loi Dong, Binh An and Binh Khanh wards in District 2.

It covers an area of seven square kilometres and almost all its buildings will be ten to 40 storeys high.

Once completed, this new urban area will replace District 1 as the city centre. It will be connected to the existing downtown area by several bridges and a 6-lane tunnel which are under construction.

Source: Vietnam News

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