DRAFT LAW OF INVESTMENT IN THE METHOD OF PUBLIC-PRIVATE PARTNERSHIP

25/11/2019, 11:27 AM

The Ministry of Planning and Investment is drafting the investment Law Project in the method of Public – Private Partnership (PPP) to attract maximum and efficient use of the private sector resources as well as the resources of the PPP project, creating a new motivation to promote the economy and society of the country.

According to the Ministry of Planning and Investment, promulgating a separate law to regulate PPP investment activities and avoiding "borrow" provisions of other legislation in the application process is necessary with the goal of establishing a sustainable legal framework.

On the investment scale of the PPP project, the draft law has two options as follows:

  • Option 1: Regulations on the minimum scale of the PPP project right at the draft law and the government delivery regulations detailing the scale for each sector (as present draft).
  • Option 2: Do not specify the minimum scale of the PPP project at the draft law and the government has to specify details on the scale for each sector in accordance with each period of socio-economic development of the country.

On the mechanism of management and use of state capital in the PPP project

  • Sources for Public investment in the PPP project:
  • Option 1: Formation of the PPP Project Development Fund
  • Option 2: Formation of a separate budget in medium-term public investment plan.
    (The majority of comments proposed option 2. The Government also recommends option 2)
  • For governmental mechanisms of guarantee:
    - The mechanism for ensuring the balance of foreign currency (article 76 Draft law): The limit for ensuring foreign currency balance is 30% of the turnover of the project in Vietnam Dong after deducting the amount spent in Vietnamese dong.
    - Mechanisms to share the risk of revenues between the state and investor (article 77 Draft law).

(BaoChinhphu)

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