'It is unscientific if the State has to buy back ineffective PPP projects'

A major road project with low traffic volume and not guaranteed revenue, then asking the State to buy it back "is unscientific", according to delegate Truong Trong Nghia.

On the morning of November 9, the National Assembly discussed the draft Resolution on piloting a number of specific mechanisms and policies on investment in the construction of road traffic works.

Article 3 of the draft outlines the principles and criteria for selecting pilot projects. Accordingly, the project must have a written proposal from the Ministry of Transport and/or the provincial People's Committee; have identified or anticipated investment capital sources; and have a clear and specific location and implementation time.

Delegate Truong Trong Nghia (Vice Chairman of the Ho Chi Minh City Bar Association) expressed concern over this provision. He said that Article 3 merely states the procedural steps in terms of principles and criteria. In order to be eligible for the special mechanism, these projects must meet three criteria: effectiveness, rationality and urgency.

Citing a real story, the delegate expressed concern when there were transport projects implemented under the public-private partnership (PPP) method, that is, based on contracts between the state and private enterprises, which were considered vital routes, but the traffic volume was too low, not meeting the revenue source. "These projects then requested the state to buy them back to rescue them, which is a very unscientific reason," said delegate Nghia.

Meanwhile, some BOT (build-operate-transfer) traffic projects have too much traffic, even overloading. "Who is responsible for the rationality and effectiveness of these projects?", said delegate Nghia.

Delegate Truong Trong Nghia. Photo: National Assembly Media — Delegate Truong Trong Nghia. Photo: *National Assembly Media*

Along with that, he suggested that if the National Assembly deputies vote to approve the list of projects that will be subject to special mechanisms under this Resolution, the Economic Committee must commit to having fully examined and affirmed that these projects are reasonable, urgent and effective. "Otherwise, leave this matter to the Government to decide on the list of projects," Mr. Nghia stated his opinion.

Delegate Vu Tien Loc (Chairman of the Vietnam International Arbitration Center) also expressed concern about the list of projects attached to the draft Resolution that the National Assembly is about to approve. He said that the National Assembly Standing Committee or the Economic Committee should not be burdened with the task of surveying, evaluating and committing to the National Assembly that these projects meet all conditions.

The delegates proposed that the National Assembly only issue criteria and conditions for projects that are eligible for the mechanism. Then, any project that meets the conditions will be eligible for special and specific regulations. The Government is responsible for recognizing the project list.

Agreeing, delegate Nguyen Danh Tu (Standing member of the Judiciary Committee) said that determining the principles and criteria for selecting pilot projects is very important. This is the basis for considering and deciding whether a project is eligible for pilot application of the specific mechanisms and policies in the draft Resolution or not.

Also interested in the list of projects, he asked the drafting agency to clarify which projects meet the principles and criteria set out in the draft resolution to be eligible for special mechanisms.

Minister of Planning and Investment Nguyen Chi Dung. Photo: National Assembly Media — Minister of Planning and Investment Nguyen Chi Dung. Photo: *National Assembly Media*

Explaining, Minister of Planning and Investment Nguyen Chi Dung agreed with delegates on the need to review the urgency and effectiveness of projects that are subject to special mechanisms. "The Ministry will work with the Economic Committee, report back to the Government and submit to the National Assembly Standing Committee for comments," said Mr. Dung.

However, the projects proposed in this Resolution have been identified, investment procedures have been prepared, and funding has been allocated. If the National Assembly allows it, Mr. Dung believes that it will be implemented in a very short time. In addition, the Ministry has also developed an open provision, allowing localities to continue to propose if they have not yet completed investment procedures.

"In the upcoming implementation process, new projects must adhere to the principles and criteria we have built and must meet them before reporting to the Government and the National Assembly Standing Committee for decision instead of waiting for the session to submit to the National Assembly," Mr. Dung informed.

Son Ha

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