On July 11, the Central Economic Committee chaired and coordinated with the Central Theoretical Council and the Asian Development Bank (ADB) to organize the Workshop "Promoting investment under the public-private partnership (PPP) method in infrastructure development in some socio-economic sectors of Vietnam".
Through monitoring PPP investment activities in recent times, Mr. Duong Ba Duc, Director of the Investment Department (Ministry of Finance), said that 2010-2014 was the period with the largest number of signed PPP projects, focusing mainly on BOT (Build - Operate - Transfer) and BT (Build - Transfer) projects in the transport sector.
The 2015-2020 period will focus mainly on continuing to negotiate several BOT power projects that had problems in the previous period and handling problems of PPP projects that have signed contracts.
In the 2021 period (the time the PPP Law takes effect until now), there are only 3 BOT transport projects transferred from the previous period and signed; 8 new projects are in the investment preparation stage, and have not signed PPP contracts. Of which, 7 are projects in the transport sector, 1 is a BTL (Build - Transfer - Lease) project in the clean water sector.
Thus, from 2021 until now, no new PPP contracts have been signed.
Ms. Do Thi Bich Hong, Institute of Strategy, State Bank also informed that as of March 31, 2023, there were 22 credit institutions (CIs) providing credit for BOT and BT transport projects, with a total limit of VND 166,819 billion, common term of 10-15 years; total outstanding credit balance was VND 92,015 billion, accounting for 0.75% of total outstanding credit balance for the economy.
According to Ms. Hong, credit growth was strongest in the 2011-2015 period due to the strong implementation of BOT and BT transport projects. Since 2016, very few new projects have arisen, and banks have mainly disbursed and collected debts for projects that have committed to providing credit.
In response to the question about the reasons for the downward trend in PPP projects from 2015 to present, the Government leader assigned "the Ministry of Finance to preside over the review of difficulties in Decree No. 28/2021/ND-CP and propose amendments and supplements; report to the Prime Minister in the third quarter of 2023".
The Department of Investment has sent documents to ask for opinions from ministries, branches, localities, investors and a number of agencies and organizations related to investment activities.
One of the reasons cited is the problem with the PPP Law, which is under the authority of the National Assembly to amend and supplement. Some opinions say that the regulation that the State capital participation in a PPP project is at most 50% of the total investment capital (Article 69 of the PPP Law) is inappropriate; some opinions suggest removing the ceiling regulation, some opinions suggest studying and amending to increase this ratio (possibly 70% of the total investment).
The Government is currently researching the drafting of a law amending laws, including the expected amendment of the provisions on removing obstacles (mentioned above) for road traffic projects.
However, to ensure the effective use of state capital, the leader of the Investment Department said that there should be strict regulations on criteria allowing road projects to apply a state capital ceiling of over 50% of the total investment.
Some local opinions suggested that the state share the reduced revenue with the PPP project investor/enterprise as soon as the actual revenue decreases below 75% of the revenue specified in the contract, instead of adjusting the price and contract term as stipulated in the PPP Law.
"The above comments are problems with the provisions of the PPP Law, under the authority of the National Assembly. We will coordinate with the Ministry of Planning and Investment and other ministries and branches to report to competent authorities for consideration and decision in the coming time," said a representative of the Investment Department.
Source
Comment (0)