VietNamNet
Bridge – There have been too many
barriers that prevent PPP (public private partnership) from getting more
popular in Vietnam. No considerable progress has been made since the day the
first project under the PPP mode kicked off in Vietnam.
The
project on the Ha Long – Hai Phong highway is one of the three projects chosen
for the program on implementing the PPP mechanism in a trial basis. Seeing this
as a good project which has high capital recover capability and high
feasibility, the International Finance Corporation (IFC), an arm of the World
Bank, even offered the support of 4-5 million dollars.
However,
after the project was chosen for the program, the Quang Ninh provincial
authorities unexpectedly signed a memorandum of understanding with the alliance
of the State Capital Investment Corporation (SCIC) and the Ha Long Production
Development and Investment Company (BIM) on the implementation of the project
of BOT and BT (build – operation – transfer).
The
alliance has chosen Japanese SE as the main contractor of the Bach Dang Bridge,
the key component of the project which would play an important role to ensure
the smooth operation of the highway.
The
Quang Ninh provincial authorities have not made its voice about the reason
behind its decision. However, an official of the local planning and investment
department said the department itself got surprised about the decision.
In
fact, every one understands that it would take less time to implement the
project under the mode of BOT with the Japanese investor. “We need to fulfill
the highway soon, while we will have to wait very long if we follow PPP mechanism,”
he said.
With
the legal framework still uncompleted, while the proposals by local authorities
unclear, it’s understandable why PPP projects are making no headway.
In
fact, long time of project implementation has been anticipated by investors. Though
the government urged to follow the PPP mode some years ago, and the Prime
Minister also issued a document guiding the implementation of PPP mechanism in
late 2010 already, no considerable progress has been made.
Especially,
the Dau Giay-Phan Thiet Highway project, the first project chosen for PPP, has
not kicked off yet.
“There
are six steps a PPP project needs to take. The first step is making strategic
analysis. And we are still are the very beginning,” commented Nguyen Dang
Truong, Deputy Director of the Bidding Management Agency, an arm of the
Ministry of Planning and Investment.
Dang
Xuan Quang, Deputy Head of the Foreign Investment Agency, Head of the PPP
Teamwork, has also confirmed that the PPP implementation in accordance with the
Prime Minister’s Decision No 71 has been going very slowly.
In
principle, local authorities and relevant branches would suggest the projects
for PPP to the ministry which would then report to the government for final
decision. To date, 30 projects have been suggested with the total investment
capital of 20 billion dollars. However, as Quang said, it’s very difficult to
choose some of them.
“The
problem is that local authorities and branches have not suggested the
commercial projects attractive enough to investors. Meanwhile, PPP is not a
magic which can turn any projects into good projects,” Quang said.
He went
on to say that the projects also cannot meet the requirements of the PPP
regulation, which means they should not be submitted to the Prime Minister.
However,
finally, the PPP teamwork has chosen three projects, namely the Ha Long – Hai
Phong Highway, the Song Hau 1 water project and the Nguyet Vien – Thanh Hoa
Bridge.
However,
Quang Ninh finally gave up the highway project.
Source:
TBKTSG
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