Viet Nam: Support for Public-Private Partnership (PPP) in Viet Nam

Sovereign Project | 44507-001

Summary

The project aimed to enhance public private partnerships to generate public infrastructure investment needed to accelerate Viet NAm's economic growth. The outcome will be an improved enabling environment to catalyze PPPs and infrastructure investments. The project will provide rapid and responsive assistance to the GOV in moving forward expeditiously with its PPP piloting program and provide analytical inputs to ADB's proposed program cluster loan to the GOV: the Viet Nam Public-Private Partnership Support Program (3PSP)

Latest Project Documents


Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

The Public Communications Policy (PCP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.

The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.

In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

Project Name Support for Public-Private Partnership (PPP) in Viet Nam
Project Number 44507-001
Country Viet Nam
Project Status Closed
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 7759-VIE: Support for Puplic-Private Partnership (PPP) in Viet Nam
Technical Assistance Special Fund US$ 225,000.00
Strategic Agendas Inclusive economic growth
Drivers of Change Private sector development
Sector / Subsector Public sector management - Public administration
Gender Equity and Mainstreaming Some gender elements
Description The project aimed to enhance public private partnerships to generate public infrastructure investment needed to accelerate Viet NAm's economic growth. The outcome will be an improved enabling environment to catalyze PPPs and infrastructure investments. The project will provide rapid and responsive assistance to the GOV in moving forward expeditiously with its PPP piloting program and provide analytical inputs to ADB's proposed program cluster loan to the GOV: the Viet Nam Public-Private Partnership Support Program (3PSP)
Project Rationale and Linkage to Country/Regional Strategy

Viet Nam faces substantial challenges in providing new and improved infrastructure for its growing economy. Industrialization and urbanization rates are high even by Asian standards, which are driving intense demands for new and improved infrastructure and related services. The unmet demand has serious consequences for the country's competitiveness and in ensuring economic growth, reducing poverty, and in meeting Millennium Development Goal (MDG) targets. Deficient infrastructure is consistently cited as a principal constraint to private investment and productivity growth in Viet Nam.

Government investment programs for infrastructure are articulated in long-term investment plans. The total investment requirement for infrastructure is estimated to be in the range of $150-160 billion over the next 10 years. Infrastructure investment is state-led and its contribution as a percentage of GDP (approximately 10% per annum) is relatively high by international standards. Investment in infrastructure has been sourced primarily through state-owned enterprises (SOEs), but which have been constrained by the stage of development of the primarily state-owned banking sector.

For an economy the size of Viet Nam and with its increasing openness to private sector participation, private investment in infrastructure has been very limited, which is attributed to, among others, lengthy Government approval procedures, less-than-competitive bidding processes, unpredictable/lengthy negotiation processes and lack of clarity regarding Government support to the private sector. To date, there are limited major public investments involving foreign investors and far more limited cases of PPPs with foreign investors. The Government currently lacks a credible PPP project pipeline. The private sector sees the GOV as "stop and go" when it comes to PPP policies and actions.

The GOV is now developing an improved enabling framework for PPP in Viet Nam and is taking steps to address existing legal, regulatory, institutional and financial constraints.

Impact The impact of the project will be increased PPP to generate public infrastructure investments needed to accelerate Viet Nam's economic growth.
Project Outcome
Description of Outcome The outcome will be an improved enabling environment to catalyse PPPs and infrastructure investments
Progress Toward Outcome
Implementation Progress
Description of Project Outputs

1. Legal and regulatory framework enhanced

2. PPP process institutionalized

3. Bankable infrastructure PPP projects developed

4. Awareness of importance of PPP by GOV and the general public is increased

Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Business Opportunities
Consulting Services

Consulting services will include national and international consultants (all individuals), along with qualifications and requirements, as follows:

1. Institutional Policy Expert, international (2 person-months), national (2 person-months):

- At least 10 years of experience in PPP policy

- Ability to develop an enabling environment and PPP project development processes.

- Experience in developing PPP manuals

- Knowledge base in all aspects of the PPP project development cycle including financial and legal assessment, statutory project assessment, project management, stakeholder consultation, risk assessment and output specification, payment mechanisms, and contractual issues.

2. Legal and Regulatory Expert, international (2.5 person months), national (2.5 person-months):

- Provide inputs for developing the implementing guidelines and circulars for implementing the regulatory framework for PPPs in Viet Nam.

- At least 10 years of international experience in infrastructure regulation in both developing and developed markets.

- Strong credentials in regulatory economics with regard to the interface between regulatory and commercial interests.

3. Project Development Expert (international, 1.5 person-months; national, 1.5 person-months):

- At least 10 years of international experience in advising on setting up a project development facility, including institutional structure, operating mechanisms, and funding requirements.

- Worked in a variety of regions and developed a knowledge base in institutional development with reference to PPP project development and structuring.

Procurement Not available
Responsible ADB Officer Michael Christian Montelibano
Responsible ADB Department Southeast Asia Department
Responsible ADB Division Viet Nam Resident Mission
Executing Agencies
Ministry of Planning and Investment6 B Hoang Dieu street, Ba Dinh district,
Hanoi, Viet Nam
Timetable
Concept Clearance 30 Jan 2011
Fact Finding 30 Jan 2011 to 12 Feb 2011
MRM -
Approval 07 Dec 2010
Last Review Mission -
Last PDS Update 01 Mar 2011

TA 7759-VIE

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
07 Dec 2010 - 07 Dec 2010 31 Jul 2011 31 Jul 2012 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
225,000.00 0.00 50,000.00 0.00 0.00 0.00 275,000.00 07 Dec 2010 208,061.35

Safeguard Documents

See also: Safeguards

No documents found.

Evaluation Documents

See also: Independent Evaluation

No documents found.


The Public Communications Policy (PCP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.

Requests for information may also be directed to the InfoUnit.