The Government has issued a decree on investment in the form ofpublic-private partnerships (PPPs), which sets out five conditions for aPPP project.
Accordingly, in order to get approval, a PPPproject should be relevant to the development master plans of therelevant sector and region and the socio-economic development plans ofthe area where the project is to be carried out.
Secondly, the project should meet legal conditions relevant to the field of investment.
Thirdly, the project should be capable of attracting and absorbinginvestor’s capital, technology and management experience.
Fourthly, the project should be capable of supplying products andservices continuously at stable quality and meeting the needs ofconsumers.
Fifthly, the project must have a minimuminvestment capital of 20 billion VND (952,000 USD), excluding those inthe form of Operations and Maintenance (O&M) and those operating inagricultural and rural infrastructure, and production services relatedto agricultural product processing and sales.
Projects notlisted on development plans of sectors and regions or localsocio-economic development plans require approval from authorized bodiesand provincial People’s Committees.
Prioritywill be given to projects meeting the above requirements and have theability to recovery capital from business activities.
The decreealso stipulates in detail the investor’s ownership capital andmobilised capital. For projects with a total investment capital up to1.5 trillion VND (71.4 million USD), the investor’s ownership capitalmust be at least 15 percent of the total capital. The percentage ofownership in projects with capital exceeding 1.5 trillion VND must be atleast 10 percent.
Government funds are not included in the calculation of the total investment capital to determine ownership ratios.-VNA