TAILIEUCHUNG - CE07-32-24.0-2012-04-27-16550368

FULBRIGHT ECONOMICS TEACHING 15, 2007NGUYEN XUAN THANHBINH AN WATER CORPORATION (BAWC)South East Asia was in a full-blown financial crisis by the end of 1997. A month before, the Binh Corporation (BAWC) had been told by a group of Malaysian banks that due to they were to provide the US$25-million loan for the implementation of the company’s BOT water project Chi Minh City (HCMC)It was two years since the BAWC, a company with 100% foreign owned capital from Malaysia, got for the construction of a water treatment plant after the Build-Operate-Transfer (BOT).strategy. Since this was the first BOT project of its kind in water supply, the Malaysian investors a great deal of time on negotiations with the Vietnamese Central Government as well as Authorities. Finally though, the Malaysian investors managed to obtain a promising permitted BAWC to build the plant and operate it for a 20-year term. It was evident that a the loan could have ruined the whole project which was supposed to generate considerable that time BAWC was in a hurry to prepare financial reports to acquire loans from other . The International Finance Corporation (IFC), an organization affiliated to the (WB), whose job is to give support to the development of the private sector in the , showed the willingness to fund the Binh An projectHo Chi Minh City and its Water Supply is the largest city of Vietnam with a population of approximately 5 million in 1997. The growth of the population during the period of 1991-1997 was . Along with the increase , the work force in the national economies in the city also rose from million in 1990 million in 1997 – the average rate was a yearHCMC was the first place in the country to experiment with the development of market relations the involvement of different economic sectors. The economy of HCMC is believed to start in 1991, a few years after the introduction of the overall economic reform. The rate of GDP between 1986 and 1995 was a year, while the average growth rate of the previous decade was at a mere a year. Between 1991 and 1995 in particular, the a year and in the years 1996-1997 it was a year. At this rapid growth, HCMC for the past several years the economic region in the country which generated one-fifth of and accounted for 30% of the industrial products and 30% of the national total ( 1).1Statistis from the Statistics Annual provided by the HCMC Statistics case study was prepared by Nguyen Xuan Thanh, lecturer at Fulbright Economics Teaching Program. Fulbright Program’s cases are intended to serve as the basis for class discussion, and not to make policy recommendationsCopyright © 2007 Fulbright Economics Teaching An Water Corporation (BAWC) growth in population and in economy, however, had exerted great pressure on the infrastructure city, such as the transport as well as the power and water supply systems. In 1997, the total the water supply of the city was 750,000 cubic meters a day, while the daily consumption million cubic meters. Clean water for HCMC came chiefly from the Thu Duc Water Plant, recently been renovated to raise the capacity from 480,000 cubic meters to 650,000 cubic meters . The Thu Duc Water Plant supplied clean water to both HCMC and Bien Hoa Industrial Park. water supplies to the city were from the Hoc Mon Underground Water Plant (whose capacity cubic meters a day) and from various water wells found everywhere inside and outside the cityAll the clean water was distributed

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