VietNamNet
Bridge – The delay in implementing the
pilot program on developing infrastructure projects under the mode of private
public partnership (PPP) has made it fail to obtain the initial expectations.
Another
infrastructure development project has been drawn up. The Quang Ninh provincial
People’s Committee has signed a memorandum of understanding (MOU) with some
investors on the implementation of the Ha Long – Hai Phong Highway project.
The
noteworthy information about the project is that it would be carried out under
the mode of BT (build – transfer), not PPP. As such, once again PPP, which is
believed to have a lot of advantages suitable to infrastructure projects, has
not been chosen.
The Ha
Long – Hai Phong highway project is one of the 30 projects chosen for the
PPP-mode investment in the trial basis. It was recognized as one of the three
best projects to be implemented under the mode of PPP. Tony Foster, Head of the
Infrastructure Working Group at the Vietnam Business Forum once questioned if
there is a coincidence in the mode of investment in the project.
Foreign
investors still keep wavering between PPP and BOT when discussing the
development of infrastructure projects.
In
fact, BT is not the only investment mode suggested for the Ha Long – Hai Phong
Highway project with the total 25 kilometers in length, including 4.5
kilometers of bridge crossing the sea. The Quang Ninh provincial authorities
have proposed to apply BT for the highway, and to use ODA (official development
assistance) capital for the bridge. As such, PPP is just the third option for
consideration.
Mr
Foster also thinks that it’s easier to implement projects under the mode of BOT
(build – operation – transfer) or BT, because they have been applied in many
projects over the last many years. As investors prefer the BOT mode, it is very
likely that only rough projects would be left for PPP.
The
story about the project in Quang Ninh is not alone. The list of the projects to
be implemented under the PPP mode includes the projects, which were initially
planned for other investment modes. As such, it would take more time to follow
the procedures to change the projects’ investment modes.
Dang
Xuan Quang, Head of the PPP inter-ministerial taskforce, has also noted that
the majority of the 30 suggested projects are the ones with low commercialism,
which would not attract investors.
If
local authorities still determine to implement the projects, the State would
have to promise high level of support in order to attract investors.
Meanwhile,
there are some projects with high commercialism, but it would be difficult to
implement them because they are just the parts of bigger projects, or in other
words, they are dependent on other projects.
These
include the projects on elevated road No. 1 in HCM City, and the belt road No.
4 in Hanoi. The two projects have high commercialism with low estimated
investment rate and expenses for site clearance. However, the dependence of the
projects on other bigger projects lessens their attractiveness.
However,
the biggest problem in implementing PPP mode is that the financial resources
have not been arranged well, while detailed regulations have not been released.
A senior official of the Ministry of Planning and Investment said that the
information available so far is not enough to define the duties and the tasks
of the involved parties in PPP projects.
This
explains the unattractiveness of the PPP investment mode in comparison with BOT
or BT, even though PPP is believed to be the new door for private investors to
get involved in infrastructure and public service projects.
Source:
TBKTVN
Business & Investment Opportunities
YourVietnamExpert is a division of Saigon Business Corporation Pte Ltd, Incorporated in Singapore since 1994. As Your Business Companion, we propose a range of services in Strategy, Investment and Management, focusing Healthcare and Life Science with expertise in ASEAN. We also propose Higher Education, as a bridge between educational structures and industries, by supporting international programmes. Many thanks for visiting www.yourvietnamexpert.com and/or contacting us at contact@yourvietnamexpert.com
No comments:
Post a Comment