Attracting PPP investment: Need for flexible mechanisms to unleash private resources

Need for comprehensive assessment of PPP Law

Giving comments on the revised Law on Investment under the Public-Private Partnership (PPP) method, delegate Ta Van Ha - Quang Nam Delegation shared that in the past, we have not been able to promote the effectiveness of the PPP Law.

Delegates asked why it has not been effective in recent times. There are sections of road that seem to attract a large volume of traffic but no domestic or international investors have participated.

Delegate Ta Van Ha - Quang Nam Delegation

Delegates suggested that it is necessary to review the legal framework, specifically the PPP Law, to unleash private investment resources, which are considered very important for the economy .

“ Currently, the routes in operation when implementing PPP for renovation, upgrading and expansion do not collect tolls. The Government is proposing to remove the “no toll” regulation. In order to attract PPP investors to repair and renovate, tolls must be collected so that investors have the opportunity to recover their investment capital. Only then will we have beautiful roads to travel on, ” said delegate Ta Van Ha.

However, according to the delegate, at what level and for how long should the fees be collected so as not to increase the burden of fees and charges on the people and ensure the rights of investors?

Therefore, the delegate proposed that there should be strict regulations, increased exchange and public opinion gathering so that we can have appropriate regulatory adjustments.

Delegate Nguyen Quang Huan - Binh Duong Delegation

Sharing the same view, delegate Nguyen Quang Huan, Binh Duong delegation shared: Looking at neighboring countries such as Korea and the Philippines, PPP is very strong and has developed extremely well, so why can't we?

“ When I talked with investors from Korea, Japan..., I found that in countries that attract PPP, the government has a policy to guarantee minimum revenue.

For example, when a business invests, the Government commits to a minimum revenue level. In case the investor does not reach that minimum revenue level, the State will compensate for the shortfall, " said delegate Huan.

Additional transitional provisions

From another perspective, delegate Duong Tan Quan, Ba Ria - Vung Tau delegation commented on the content related to Article 6 of the draft Law on Public Investment amending regulations on outstanding debts in basic construction.

The delegate suggested that the drafting agency consider adding the phrase "and annually" to more clearly define that outstanding debt is the volume that has been accepted but has not been included in the medium-term public investment plan or the annual plan to ensure control and not miss payment obligations during the budget management process.

Delegate Duong Tan Quan, Ba Ria - Vung Tau Delegation

In addition, Article 37 and Clause 4, Article 103 of the Law on Public Investment stipulate transitional provisions that do not clearly stipulate the authority to stop investment policies for projects decided before the effective date.

Delegates suggested that the drafting agency supplement transitional regulations to clearly define the authority to stop investment policies for previously approved projects, especially for projects using local budget capital.

Before discussing in groups, this morning (May 17), the National Assembly listened to the Submission and Report on the examination of the draft Law amending and supplementing a number of articles of the Law on Bidding; the Law on Investment under the Public-Private Partnership (PPP) model; the Customs Law; the Law on Export Tax and Import Tax; the Investment Law; the Law on Public Investment; and the Law on Management and Use of Public Assets.

In particular, for the PPP Law, the draft Law allows the application of BOT contracts for projects to upgrade and expand works; Add cases of early contract termination for science and technology PPP projects with actual revenue lower than 50% of the expected revenue; Amend the mechanism for sharing the reduced revenue in the direction of assigning the Government to specify the sharing ratio in detail.

In particular, the regulation expands the designation of investors (adding the case of designating contractors for some cases) and adds the form of selecting investors in special cases for PPP projects in the field of science and technology...

Thu Huong

Source: https://congthuong.vn/thu-hut-dau-tu-ppp-can-co-co-che-linh-hoat-khoi-thong-nguon-luc-tu-nhan-388038.html