VN pilots PPP in nine sectors
VGP – Since January 1, 2011 on, Việt Nam will pilot the public-private partnership (PPP) form of investment in nine sectors, according to the PM’s Decision 71/2010/QĐ-TTg. The move is expected to lay a foundation for further improvement of policies and laws on PPP.
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Nine sectors opened for experimental PPP include (1) roads, highway bridges, tunnels and ferries for road traffic; (2) railway, railway bridges and tunnels; (3) urban transportation; (4) airports, sea and river ports; (5) clean water supply systems; (6) electrical plants; (7) healthcare (hospitals); (8) environment (waste treatment plants); and (9) other projects for infrastructure development and/or the provision of public services as decided by the PM.
The Decision requested that the pilot model would attract private and foreign investment for infrastructure development and the provision of public services.
The pilot PPP scheme would raise capital from domestic and international sources without leading public debt.
Selection of an investor to implement projects would base on a fair, competitive, transparent and economically efficient manner and in compliance with international customs and practice.
Especially the State participation may not exceed 30% of the total investment capital.
In selecting pilot PPP projects, preference will be given to those projects which demonstrate the ability to repay investment capital from operational revenues; to utilize technological, managerial and operational expertise; and to mobilize and efficiently use private capital.
By Hương Giang
