State capital support mechanism for PPP investment projects On June 22, 2016, the Government Office issued Notice No. 149/TB-VPCP on the conclusion [...]
On June 22, 2016, the Government Office issued Notice No. 149/TB-VPCP on the conclusions of Deputy Prime Minister Trinh Dinh Dung at the meeting on the state capital support mechanism for investment projects in the form of public-private partnerships (PPP).
According to the Notice, to implement the country's socio-economic development strategy and industry and field development plans, capital needs for development investment Infrastructure system development in the coming time is huge. Meanwhile, resources from state capital sources are limited and do not meet demand, so the attractionResources from society invested in the form of PPP are particularly important. In order to mobilize social capital to be highly effective, it is necessary to have the State's capital participation in investing in the construction of works in the form of BOT to reduce toll collection time as well as reduce infrastructure fees, in accordance with people's ability to pay, while reducing input costs for products, contributing to improving the competitiveness of products and the economy.
In recent times, PPP investment forms (BOT, BT...) have been strongly deployed. However, the scale of investment projects is still small, there is no focus on investing in key projects with great pervasiveness, and the socio-economic efficiency is not high. To create a breakthrough in attracting investment capital for infrastructure projects in the coming time, especially transportation infrastructure, Deputy Prime Minister Trinh Dinh Dung requested ministries, branches and localities to continue to review and make a list of priority investment projects. Assign the Ministry of Planning and Investment to synthesize and select priority projects (the Ministry of Transport focuses on investing in the North-South Expressway), proposing the need for state support capital. At the same time, continue to work with the Japan International Cooperation Agency (JICA) and other donorsOther measures to develop a mechanism to mobilize ODA capital for PPP projects, based on calculating the disbursement capacity of committed agreements by 2020 and the maximum loanable amount according to the provisions of the Law on Public Debt Management. ODA loans and concessional loans from foreign donors are important sources for investment in infrastructure development, establishing state support capital for PPP projects.
To be more proactive in implementing PPP projects and agreeing to receive JICA's standby loan as a loan for the program, the Prime Minister assigned the Ministry of Planning and Investment to preside and coordinate with the Ministry of Finance and relevant ministries to perform the role of the program's managing agency, acting as the focal point for monitoring, synthesizing, and selecting projects... In addition to state support from JICA's loan mentioned above, the Ministry of Planning and Investment and the Ministry of Finance need to research forms Participate with state capital in investment projects in the form of PPP.
At the same time, develop a comprehensive report on the state capital support mechanism for investment projects in the form of PPP, collect opinions from relevant ministries and branches, and submit to the Prime Minister in June 2016, focusing on the need to participate in state capital support, the list of priority investment projects in the coming time, the need for state capital to support investment in priority projects in all industries and fields, including Focusing on the transportation sector, supporting capital sources and implementation mechanisms./.
Mai Phuong
Ministry of Planning and Investment
Procedures
