Vietnam: Advantages of making investment in a PPP form according to new regulations

According to Circuclar No. 19/2019/TT-BGTVT of the Ministry of Transport of Vietnam, advantages of making investment in a PPP form and consulting opinions are as follows:

- Giving the thorough analysis of advantages of the PPP investment form (including the study on conversion of investment form of projects using public investment capital), including the capability of calling for funding sources, technologies and experience in management of the private sector; results of the practical survey on the private sector’s capability of implementation of the project; plans to divide risks between involves parties.

- Specifying limitations on making investment in the PPP form in comparison to other investment forms, including: related parties’ capabilities of managing the project; the complexity of formulating and implementing terms and provisions of the project contract.

- With regard to projects proposed by investors, FSR must include the analysis on advantages of funding sources and investors’ balancing capabilities; the capability of balancing state budget allocations for the project; investors' managerial capability and experience; the investment recovery capability, investment efficiency and capability of receiving and dealing with risks.

- The preparation of FSR should take into account consulting opinions on investment in the project given by one or more regulatory authorities and organizations such as People’s Council, People's Committee, National Assembly Deputy Delegation of the province or city where the project is implemented, and trade and professional associations related to the investment sector of the project.

View more details at Circuclar No. 19/2019/TT-BGTVT of the Ministry of Transport of Vietnam, effective from July 10, 2019.

- Thanh Lam -

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