Ho Chi Minh City Investment Fund for Urban Development Project

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The project aims to develop Ho Chi Minh City Investment Fund for Urban (HIFU) Development as a model Local Development Investment Fund LDIF (in terms of internal policy and procedures for financial policy, sub-project appraisal, social and environmental safeguards, and partnership with the private sector) and increase private sector participation in financing municipal infrastructure in Ho Chi Minh City. There are 2 components to the project. Component 1, Investment Capital, will have a line of credit provided to HIFU to invest in cost recovery oriented municipal infrastructure investments in partnership with the private sector. A Project Preparation and Appraisal (PPA) Manual governs how the HIFU investments under the line of credit will be identified, developed and appraised. A pipeline of projects has been identified and confirms that HIFU can absorb the investment capital which is being made available via the project. Two sub-projects to be financed in year one of project implementation have been appraised. Component 2, Technical Assistance, will have HIFU finance the technical assistance to support the implementation of operational reforms, including: (i) support to implement the PPA manual with on-the-job chief advisor and technical specialist, as well as a social specialist and an environment specialist; (ii)support to implement the PSP manual with on-the-job chief advisor and private sector specialist; (iii) independent monitoring consultants for social and environmental safeguards policies; and (iv) Financial Audits of HIFU to International Auditing Standards.