Attracting PPP investments: Flexible mechanisms are needed to unlock private resources.

On the afternoon of May 17th, during group discussions, many National Assembly deputies proposed amending the Law on Bidding and the Law on PPPs in a more open and flexible direction to unlock private resources.

A comprehensive review of the PPP Law is needed.

Commenting on the revised Law on Investment under the Public-Private Partnership (PPP) method, delegate Ta Van Ha from Quang Nam province shared that, in the past, we have not been able to fully utilize the effectiveness of the PPP Law.

Delegates questioned why the project hasn't been effective in the past. Some sections of the road, which were expected to attract high traffic volume, have not attracted domestic or international investors.

Delegate Ta Van Ha - Quang Nam Delegation

Delegates suggested that the legal framework, specifically the PPP Law, needs to be reviewed to unlock private investment resources, which are considered crucial for the economy .

“ Currently, roads undergoing renovation, upgrading, and expansion under PPP projects are toll-free. The government is proposing to abolish the ‘no toll’ regulation. To attract PPP investors to repair and renovate roads, 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, ” Representative Ta Van Ha expressed his opinion.

However, according to the delegates, the question is what level of fees should be collected, and for how long, to avoid increasing the burden of fees and charges on the people and to ensure the rights of investors.

Therefore, the delegates proposed that stricter regulations are needed, along with increased efforts to exchange ideas and gather public opinion, so that we can adjust regulations accordingly.

Delegate Nguyen Quang Huan - Binh Duong Delegation

Sharing the same viewpoint, delegate Nguyen Quang Huan from Binh Duong province said: "Looking at neighboring countries like South Korea and the Philippines, they attract PPPs very strongly and are thriving, so why can't we do the same?"

" When I spoke with investors from South Korea, Japan, and other countries, I noticed that in those countries that attract PPPs, the government has policies to guarantee minimum revenue."

For example, when businesses invest, the government commits to a minimum revenue target. If the investor fails to meet that minimum revenue target, the state will compensate for the shortfall, ” Representative Huan said.

Add transitional provisions

From a different perspective, delegate Duong Tan Quan from the Ba Ria - Vung Tau delegation commented on the content related to Article 6 of the draft amended Law on Public Investment, which stipulates the outstanding debt for basic construction.

The delegates suggested that the drafting agency consider adding the phrase "and annually" to more clearly define that outstanding debt refers to the volume of work that has been completed but has not yet been included in the medium-term public investment plan or the annual plan, in order to ensure control and prevent the omission of payment obligations during budget management.

Delegate Duong Tan Quan, Ba Ria - Vung Tau Delegation

Furthermore, Article 37 and Clause 4 of Article 103 of the Law on Public Investment, which provide transitional provisions, do not clearly specify the authority to halt investment policies for projects decided before their effective date.

The delegates suggested that the drafting agency add transitional provisions to clearly define the authority to halt investment approvals for previously approved projects, especially those using local government budget funds.

Before proceeding with group discussions, this morning (May 17th), the National Assembly listened to the Presentation and the Verification Report on 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) method; the Law on Customs; the Law on Export and Import Taxes; the Law on Investment; the Law on Public Investment; and the Law on Management and Use of Public Assets.

Specifically, regarding the PPP Law, the draft law allows the application of BOT contracts for projects to upgrade and expand infrastructure; adds a provision for early termination of contracts for science and technology PPP projects where actual revenue is less than 50% of projected revenue; and amends the revenue sharing mechanism to allow the Government to specify the detailed sharing ratio.

In particular, the regulations expand the scope of investor designation (adding the option of direct contracting in certain cases) and add a form of investor selection in special cases for PPP projects in the science and technology sector...

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