Feasibility Study Report for the PPP Project Prepared by the Competent Authority

Feasibility study report of a PPP project prepared by a competent authority (illustrative image)

Articles 19 and 20 of the Public-Private Partnership Investment Law 2020 stipulate as follows:

For the feasibility study report of a PPP project, the following two contents are specified:

Firstly: The project preparation unit prepares the feasibility study report based on the investment policy decision.

Secondly: The feasibility study report includes the following main contents:

- The necessity for investment; investment advantages according to the PPP method compared to other investment forms; feedback on the impact of implementing the project according to the PPP method when there are opinions from the People's Council, People's Committee, Vietnam Fatherland Front at the provincial level where the project is implemented, relevant professional associations in the investment field;- The compatibility of the project with national socio-economic development strategies and plans and related planning according to the provisions of the planning law;- Objectives; scale; location; demand for land use and other resources;- Progress; project implementation time including: contract term, construction time for projects with construction components;- Explanation of requirements for technical plans, technologies, quality standards of works, infrastructure systems, or public products and services; design dossiers according to construction law and other related laws; connections between component projects (if any);- Type of PPP project contract; risk analysis and risk management measures of the project;- Forms of incentives, investment assurance, revenue reduction sharing mechanisms;- Total investment level; the project's financial plan; estimated state capital in the project and corresponding management and usage forms (if any); results of investor and lender interest surveys (if any); capital mobilization capability to implement the project; management, business, or public product and service provisioning plans;- The project's socio-economic effectiveness; environmental impact assessment report according to environmental protection law.

For the appraisal documents and contents of the PPP project feasibility study report:

The appraisal documents of the feasibility study report include:

- Proposal for appraisal;- Draft proposal for project approval;- Feasibility study report;- Investment policy decision;- Other related legal documents of the project.

The appraisal of the feasibility study report includes the following main contents:

- Legal basis suitability;- Investment necessity;- Suitability with requirements for technical plans, technologies, quality standards of works, infrastructure systems, or public products and services. The appraisal of the design, technical, technological, and quality standard dossiers is carried out according to construction law and other related laws;- Suitability of the PPP project contract type;- Financial feasibility; management, business, or public product and service provisioning plan;- Socio-economic effectiveness.

More details can be found in the Public-Private Partnership Investment Law 2020 effective from January 1, 2021.

Thanh Thao

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE