Vietnam - Challenging road for some PPP projects

The three eagerly awaited investment projects designed under the public-private partnership model have been revealed.

Song Hau 1 water provision project in the Mekong Delta, the 25km Ha Long-Haiphong expressway connecting Quang Ninh province and Haiphong city, and Thanh Hoa province’s 11km Nguyet Vien-Thanh Hoa bridge construction project have been selected from 30 investment proposals for being piloted under the PPP model.

The Ministry of Planning and Investment’s (MPI) Foreign Investment Agency (FIA) reported that feasibility studies had been done for the Halong-Haiphong expressway and Nguyet Vien-Thanh Hoa bridge.

The FIA said 27 other projects were considered for being eligible to the PPP model. They include expressway, urban road, electricity, airport, hospital, water, river port and urban infrastructure development projects.

However, a number of the 27 projects migh not be submitted to the government for approval because they were not attractive to investors, said FIA deputy head Dang Xuan Quang. The Hanoi ring-road 4 and Ho Chi Minh City flyover 1 projects fall into the doubtful category.

Earlier, in line with Decision 71/2010/QD-TTg on pilot PPP development in Vietnam, the MPI asked relevant government agencies and local authorities to propose PPP projects.

Vu Quynh Le from the MPI’s PPP Office said under Decision 71, a portfolio of projects must have been proposed to the MPI within 2011 and appraisal must be done by mid-2012, before the projects were introduced to private investors.

“However, we have faced difficulties in building this portfolio, because proposed projects have no specific data and fail to meet PPP criteria,” Le said.

Currently, only two PPP projects are being implemented in Vietnam on a pilot basis including the VND19 trillion ($913.46 million) Dau Giay-Phan Thiet expressway, running through southern Dong Nai and Binh Thuan provinces, and the VND17.161 trillion ($825 million) Lach Huyen port in Haiphong city.

Khoi Nguyen | vir.com.vn

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