VietNamNet Bridge – Vietnam may set up a fund which helps
prepare and start investment projects under the mode of private public
partnership (PPP). This could be seen as a solution to make PPP more popular in
Vietnam.
Dau tu has quoted its sources
from the Ministry of Planning and Investment--as saying that the negotiations
between the State Bank of Vietnam and the Asian Development Bank ADB have
finished, and it is very likely that an agreement on the establishment of the
fund would be signed this month between the two.
The sources also said that the
fund would have the initial capital of 20 million dollars, which is not a big
sum, but would have much significance in push up the implementation of
infrastructure projects under the mode of PPP.
“Appropriations would allow the
state taking initiative in preparing for the projects, and selecting investors
for PPP projects,” the official from the Ministry of Planning and Investment
said.
Despite its great advantages, PPP
still not a big choice for the investors and contractors in Vietnam.
“In the past, since there was no
fund to prepare for the projects, the State was always in the passive voice. In
many cases, it has to choose the investors, who initiated and suggested the
projects, even though the investors were not capable enough,” he explained.
In principle, the State needs to
be the body which builds up and prepares projects. After that, it would invite
for bids to choose investors.
Deputy Minister of Planning and
Investment, Cao Viet Sinh, also many times affirmed that in order to develop
PPP in Vietnam, it needs to create a market for PPP, and build pilot projects
with high merchandise level in order to attract private investors.
Meanwhile, to date, the pilot
projects all have been suggested by investors. Some of the projects were suggested
by local authorities. However, since there has been no initial fund, the
projects have not been attractive enough in the eyes of investors.
An official of the PPP Office has
pointed out that investors could not see profits in most of the projects
suggested by local authorities; therefore, they kept away from the projects.
“Sometimes we received the
suggested projects with no detailed information, except the name of the
projects. These would not catch the eyes of investors,” he said.
Regarding the feasibility of the
fund, according to Le Van Tang, Head of the Bidding Management Department under
the Ministry of Planning and Investment, ADB has promised to give support to
develop the fund. Besides, other donors have also sent words they would be ready
to give support.
“AFD is one of them. It is highly
possible that the appropriation it gives may be up to 8 million euros,” the
official said. “Others have also shown their interests in this”.
“We try to design the fund under
the mode of an open fund, so that not only ADB, but other sponsors would be
able to give additional capital to the fund. This would allow us to prepare PPP
projects in a more effective way to attract investors,” Tang said.
The recent moves by the
government showed that it has been determined to encourage the PPP mode in
infrastructure development.
Recently, the Ministry of
Planning and Investment has set up the one-stop-shop division in charge of PPP
projects. The government has released the decision on the establishment of the
PPP Steering Committee headed by Deputy Prime Minister Hoang Trung Hai.
Compiled by Thu Uyen
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