Session 02 – 06 – Tran Viet Dung – VIET NAM

ASEAN PPP Networking Forum
16-17 December 2014, Manila, Philippines
Toward a robust PPP Program in Vietnam
Mr. Tran Viet Dzung
Deputy Director of PPP Office
Public Procurement Agency, Ministry of Planning and Investment of Vietnam
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The context implementing PPP program in Vietnam
Private investment in
infrastructure
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Objectives of PPP implementation
1.
2.
3.
Support the objectives of socio – economic development
• Reduce poverty and promote sustainable growth
• Improve access to basic social services such as clean water,
electricity, health care and so on.
Improve competitiveness for Vietnam
• Reduce transaction costs for businesses
• Improve market access and investment opportunities
Enhance efficiency of public investment
• Reduce public debt
• Mobilize various capital sources for infrastructure
investment
Initiative to facilitate PPP
PPP Steering Committee
 Chairman:
Mr. Hoang Trung Hai, Deputy Prime Minister of Vietnam
 Other members: Vice Ministers of the relevant ministries
Ministry of
Planning and
Investment
PPP Office
PPP Office is set up under the Public
Procurement Agency and act as focal point
for PPP.
Overview of PPP implementation: CHALLENGES
Complex legal
framework
Inconsistent
approach to
project
development
Need for
capacity building
Overview of PPP Legal Framework
LAW
DECREE
CIRCULAR
(Tentative)
Law on
Construction
Law on
Investment
Law on
Public
Investment
PPP Decree
Circular providing
guidance on criteria for
project identification
and formulation,
appraisal, approval of
Project Proposal
Circular providing
guidance on the use
and management of
Project Development
Fund (PDF)
Law on
Public
Procurement
Decree on
Investor
Selection
Circular on
Standardized
Request for
Qualification,
Request for
Proposal
6
Efforts to overcome big challenges- Institution reform
2009
DECREE ON
INVESTMENT IN
THE FORM OF
BOT, BTO, BT
CONTRACT
2014/2015
PPP
Decree
DECISION
PROMULGATING
THE REGULATION
ON PILOT
INVESTMENT IN THE
PPP
2010
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Efforts to overcome big challenges- Institution reform
Wider
sector
coverage
Stronger
lender
right
PPP
project
cycle
Deeply
considered
Decree on
PPP
Investment
decision
based on PPP
oriented FS
Availability
of VGF
Flexibility
in contract
structures
PPP
project
cycle
Flexibility
in contract
structures
Availability
of VGF
Efforts to overcome big challenges- Financial support strategy
PDF
Efforts to overcome big challenges- Financial support strategy
Project Development Facility
Viability Gap Fund
(PDF)
(VGF)
 Main functions:
 Main functions:
- Support project preparation;
- Provide subsidy for projects not
totally bankable.
- Conduct risk and project feasiblity
analyses;
- Provide project pipeline.
 Fund sources:
- State budget;
- ODA (grant and loan).
 Fund sources:
- State budget;
- ODA (grant and loan).
P Participation in Regional forum – ASEAN CONNECTIVITY
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MPI
Department of
Infrastructure
and Urban
Development
Department of
Foreign
Economic
Relations
Public
Procurement
Agency
Supervision of
the Master Plan
Supervision of
ODA related
projects
Supervision of
PPP projects
Potential PPP projects under
Master Plan on ASEAN Connectivity
Expressway Bac Ninh – Lang Son
Hanoi – Lang Son corridor: National road 1
Highway Ha Long – Mong Cai
- Land area = 10.000 m2
- Total capital = 63 mil. USD
Urban Railway: Hanoi – Noibai
International Airport
Length= 47 km
Total capital: 1.5 bil USD.
Railway: Hanoi – Haiphong,
phase 1
Highway Ninh Binh - Thanh Hoa
- Length: 81 km
- Total capital= 500 mil. USD.
Expressway Ben Luc – Long
Thanh
- Length = 57,1km;
- Total capital= 1,6 bil. USD.
Expressway Bien Hoa – Vung Tau
- 54 km;
- Total capital= 1,5 bil. USD.
International Airport Long Thanh
Capacity= 100 mil passengers – 5 mil
goods/year
Total capital= 5.9 bil. USD.
Contact
PPP Unit
Tel: 080 44681
Fax: 080 44323
Email: [email protected]
Website: www.mpi.gov.vn