Illustrative image (Source: VNA) Hanoi (VNA) – DeputyTransport Minister Nguyen Ngoc Dong has pledged to create optimal conditionsfor calling international investment capital in the eastern North-South expressway.
The Ministry of Transport and theWorld Bank co-hosted a seminar in Hanoi on April 26 to acquire experts’experience in public-private partnership (PPP) model before launching theproject.
Dong said the ministry has calledfor investment to develop road infrastructure in the form of Build-Operate-Transfer(BOT) since 1997. However, only domestic investors and credit organisationshave so far taken part in BOT projects, he ssaid.
Representatives from theministries of transport, finance, planning and investment, World Bank, StateBank of Vietnam, and economists proposed measures to clear obstacles regardingrisk sharing and bidding mechanism, and capital resources.
Participants discussed a generalstrategy on the project, risk sharing between authorised agencies andinvestors, banks and capital market in the construction of expressways inVietnam, building of effective PPP model based on bidding policy and legalframework, as well as basic difficulties to submit to the high-level meetingscheduled for May.
According to the TransportMinistry, one of the major challenges to infrastructure in general andtransport infrastructure in particular is limited investment resource. Publicinvestment meets only 25 percent of the demand.
In many countries, the PPP modelis a tool to improve the efficiency of public services and ease financialpressure on governments.
According to the Resolution 52dated November 22, 2017 of the National Assembly, the eastern North-South expressway project began in 2017 andwill be basically completed in 2021. The legislature also adopted several resolutionson mechanisms and policies during the implementation.
The Ministry of Planning andInvestment proposed amending Decree No.15/2015 on PPP investment, which is dueto be approved by the government in the near future, thus laying an importantlegal foundation for the project and other BOT transport projects.-VNA
VNA
