The Ministry of Agriculture and Rural Development (MARD) has approved the investment plan in the form of PPP for the period 2016 - 2020, with 21 projects, total investment capital of nearly 6,900 billion VND.
The Ministry of Agriculture and Rural Development said that implementing the Law on Public Investment and the Prime Minister's Directive on developing the 2016 Five-Year Plan - 2020, the Ministry has reviewed the conversion of projects investment using state budget capital managed by the Ministry to implementation in the form of public-private partnership (PPP).
At the same time, the Ministry has approved the investment plan in the form of PPP for the period 2016 - 2020, with 21 projects. Among them, there are 4 irrigation projects; 10 fisheries projects; 2 forestry projects; 5 water supply and waste treatment projects. Total investment is about 6,880 billion VND, of which the expected State capital participation is 2077 billion VND; private capital 4802 billion VND.
Currently, the Ministry is finalizing a Joint Circular guiding the implementation of a number of articles of Decree 15/2015/ND-CP on investment in the form of PPP in the agricultural sector.
However, the Ministry of Agriculture and Rural Development also said that there are many difficulties and obstacles that arise during the implementation of agricultural PPP projects.
First, the legal corridor to implement investment in the form of PPP is not yet complete and synchronous. Circulars guiding the implementation of Decree 15/2015/ND-CP on investment in the form of public-private partnerships have not been fully issued, especially circulars guiding on finance and use of capital sources. (support for project preparation, state budget capital for project implementation...), so the implementation still faces difficulties and obstacles.
Second, arranging capital sources to implement PPP projects is still extremely difficult (currently there is no separate source, still mainly relying on budget sources in the public investment plan). Because the investment capital in the Ministry's public investment plan is very limited, the projects that can attract investment to implement in the proposed PPP form are not urgent projects, top priorities of the Ministry and the Government, so it is difficult to allocate budget capital in the medium-term public investment plan 2016 - 2020 for implementation.
Third, PPP is a new form of investment. Most units under the Ministry do not have specialized staff or in-depth knowledge about PPP, so the capacity to propose projects is limited, and the implementation organization is still confused and confused.
Fourth, investment projects in the agricultural and rural sectors often have low profitability and long capital recovery periods, so they are often less attractive to investors than other industries. Currently, there are not many investors interested in, understanding and proactively proposing, participating in, and implementing PPP projects in industry sectors.
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