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 P P P The context implementing PPP program in Vietnam Private investment in infrastructure P P P 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 P P P 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 P P 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