Vietnam asks state Ministries to review lists of PPP projects

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Vietnam asks state Ministries to review lists of PPP projects

Vientnam's Deputy Prime Minister Hoang Trung Hai has asked the Ministry of Transport, the Ministry of Construction, the Ministry of Industry and Trade, and the Ministry of Agriculture and Rural Development to proactively revise its lists of public private partnership (PPP) projects.

  • The Ministry of Transport is to select highway, railway, seaport and airport projects,
  • the Ministry of Construction is to select solid waste disposal, waste water, and urban water supply projects,
  • the Ministry of Industry and Trade is to select energy and wholesale market projects, and
  • the Ministry of Agriculture and Rural Development is to select rural water supply, irrigation, pumping station, storage, planting, and submerged forest projects.

Deputy Prime Minister has also asked for quickening the introduction of a decree mandating PPP investment since the form is viewed a solution to the inadequate infrastructure investment problem. At a meeting of the PPP Steering Committee in Hanoi on December 16, which Hoang Trung Hai headed, he stated that applying the model of PPP is one of the important ways that could draw non-state money to public projects.

The Ministry of Planning and Investment (MPI) revealed that the draft decree it prepared contains full, updated provisions of the newly-issued Public Investment Law, Procurement Law, Investment Law, and Business Law.

In early December we reported that Vietnam's decree on investment in the form of PPP is being completed and will be issued soon. This new PPP decree seeks to provide more clarity and incentives for private investors by bringing all the PPP regulations under only one decree.

According to the MPI, the estimated capital needed for infrastructure construction in Vietnam by 2020 is calculated as U$400 billion, of which half is planned to be mobilized from the private sector. Energy, waste, water treatment and transportation present major challenges.

The government of Vietnam  is currently seeking advisor for the development of an e-Government Procurement (e-GP) PPP project. The e-GP project involves the development of a national network of procurement systems and a legislative framework for adoption of e-procurement on a whole of government basis.

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