(AP3F025-CB011) Capacity-related assistance to the Ministry of Planning and Investment
COUNTRY:
Viet Nam
TA AMOUNT:
$547,838
TYPE OF ASSISTANCE:
Capacity Building
PROJECT STATUS:
Active
Beneficiaries
Ministry of Planning and Investment (MPI)
Ministry of Construction (MOC)
Ministries and line agencies implementing PPP projects
Background

Over the last few years, the Public Procurement Agency of the Ministry of Planning and Investment (PPA/MPI) has been trying to promote the PPP concept but with little success. In 2015, the Government introduced Decree No. 15/2015/ND-CP, which was a marked improvement from previous legislation as it provided a single legal framework for private investment in public infrastructure sectors. On 4 May 2018, the Government issued the Decree No. 63/2018/ND-CP to replace the Decree No. 15/2015/ND-CP which took effect on 19 June 2018. Furthermore, the Decree No.30/2015/ND-CP was also introduced in 2015 to provide guidance on the procurement framework for PPP projects. To date, no project has been procured under these PPP Decrees.

Given the limitations of the existing legal framework and, as assigned by the National Assembly the Government intends to introduce a PPP law, and the two decrees mentioned above are expected to form the foundation for the law to regulate PPP investments. Indeed, on April 20th, 2018, a proposal to develop PPP Law was submitted by PPA/MPI to the Government for consideration. After that, the proposal to develop PPP Law will be submitted to the National Assembly to be included in the Law Formulation Program. The proposed PPP Law will lay down the regulatory framework for future PPP investment in Viet Nam.

The Government has approached AP3F to ask for its support relating to capacity building and research on some important issues, such as on government guarantee, project screening criteria and KPIs for some sectors.

Key Activities
  1. Development of guidance or policy note that compiles international studies and practices regarding government support that will serve as inputs for the preparation of a section on guarantees in the draft PPP Law and related circulars

  2. Development of methodology to screen and select potential PPP projects in Viet Nam

  3. Development of key performance indicators

  4. Development of models of investment, management and operation of municipal daily-life solid waste value chain (collection, transportation, treatment and disposal) services for the Ministry of Construction

  5. Support for the formulation of pricing mechanism for daily-life solid waste treatment

Expected Outcomes

By 2020: At least one solid waste management project approved using investment model and pricing mechanism developed with AP3F assistance