Viet Nam: Public Private Partnership Support Project

Sovereign Project | 44507-002 Status: Active

Summary

ADB is supporting the development of bankable and commercially viable public-private partnerships (PPP) in Viet Nam. A project development facility will be established to fund preparatory work for proposed PPP projects, which include pre-feasibility studies, feasibility studies, and the engagement of advisors.  The enabling framework and institutional capacity for PPPs will also be strengthened.

Latest Project Documents

Consulting Notices See also: CMS

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Procurement Notices See also: Operational Procurement

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Procurement Documents


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Project Name Public Private Partnership Support Project
Project Number 44507-002
Country Viet Nam
Project Status Active
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 2920-VIE: Public-Private Partnership Support Project
Asian Development Fund US$ 20.00 million
Loan 8273-VIE: Public-Private Partnership Support Project --Additional Cofinancing
Agence Francaise de Developpement US$ 10.00 million
Strategic Agendas Inclusive economic growth
Drivers of Change Governance and capacity development
Private sector development
Sector / Subsector

Public sector management - Public administration

Gender Equity and Mainstreaming No gender elements
Description The project entails the use of an ADF project loan of $20 million to fund the establishment of a Project Development Facility (PDF) that would help bring bankable PPP projects to the market. The PDF would be used by government ministries / project sponsors to fund PPP project preparation activities which include pre-feasibility studies, full feasibility studies and the engagement of transaction advisors who would structure deals to bring to the private sector for bidding.
Project Rationale and Linkage to Country/Regional Strategy
Impact Increased private sector investment in infrastructure

Project Outcome

Description of Outcome Improved government capacity to catalyze PPPs and infrastructure investments
Progress Toward Outcome Inter-ministerial Steering Committee for PPPs chaired by the Deputy Prime Minister has been established and became operational. A comprehensive PPP Decree was approved by the Prime Minister on 14 February 2015. Procuedures for screening and approving PPP projects have been developed. Means by which to manage monies from the national project developmetnt facility, or PDF, are in the process of being finalized. A shortlist of approximately 10 projects that will be a priority for development as PPPs have been identified; preliminary assessment of a subset of these candidate opportunities is ongoing.
Implementation Progress
Description of Project Outputs

Institutional Mechanisms for Developing Bankable PPP Projects Established

PPP institutional capacity developed through a medium-term capacity building plan

Strengthened PPP Enabling Framework

Status of Implementation Progress (Outputs, Activities, and Issues)

The engagement of consutlants to implement the 2 components has been completed. Both firms are actively supporting the government under the loan.

Expressions of interest (EOI) were solicted from firms to provide advisory services to the Government on an indefinite delivery contract basis. The EOIs have been evaluated and a shortlist of firms is pending final approval. It is expected that the panel will be announced within 4Q 2015. Once appointed, the panel of advisors will then be available on an on-call basis to support the government's efforts to prepare proposed PPP projects; the advisor will help prepare projects to a level that they are ready for competitive tender and will then help complete the tender process.

Work has progressed on the screening process for candidate PPP projects and management rules and procedures for the project development facility have been developed. Upon completion of the advisory panel selection and the management documents, the PDF should be ready for funding from the proceeds of the loan.

While the foregoing activites were progressing, advance contracting activities for advisors to government on its proposed e-governance project (e-GP) advanced. The MPI has almost completed its selection of advisors and an announcment should be made within 2015, with preparatory works to commence immediately thereafter.

Last review mission was undertaken in April 2015.

Geographical Location

Safeguard Categories

Environment C
Involuntary Resettlement C
Indigenous Peoples C

Summary of Environmental and Social Aspects

Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design none
During Project Implementation

Business Opportunities

Consulting Services As of the last August mission, the mission and the EA discussed progress recruiting consultants. It is anticipated a core team of consultants will be recruited under the loan in the first quarter 2014 to support the PPP Office and scale up project preparation and implementation. The core team is being recruited through a technical package and a legal package. The EA has received 27 expressions of interest (EOIs) for the technical package and 14 EOIs for the legal package. The EA intends to submit shortlists of consultants to ADB and AFD on Friday 30 August. The EA is receiving assistance from a national consultant from VRM to recruit the core team using the QCBS method of procurement. The EA was advised by the mission that ADB is in the process of engaging an international PPP procurement consultant to provide support in the areas of: (i) recruiting the core team of technical and legal consultants, and (ii) preparing the necessary documentation and assisting the EA implement the process for: (a) engaging 3-4 consultant teams to prepare prefeasibility studies, and (b) establishing a panel of prequalified consultants based on indefinite delivery contracts. It is anticipated the PPP procurement consultant will be mobilized on 23 September at the same time as the international PPP financial consultant.

Responsible Staff

Responsible ADB Officer Eiichi Sasaki
Responsible ADB Department Southeast Asia Department
Responsible ADB Division Public Management, Financial Sector and Trade Division, SERD
Executing Agencies
Ministry of Planning and Investment
6 B Hoang Dieu street, Ba Dinh district, Hanoi, Viet Nam

Timetable

Concept Clearance 15 Feb 2012
Fact Finding 27 Feb 2012 to 02 Mar 2012
MRM 23 May 2012
Approval 25 Oct 2012
Last Review Mission -
Last PDS Update 25 Sep 2015

Loan 2920-VIE

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
25 Oct 2012 17 Jan 2013 28 May 2013 30 Jun 2019 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 22.90 Cumulative Contract Awards
ADB 20.00 25 Oct 2012 2.13 0.00 12%
Counterpart 2.90 Cumulative Disbursements
Cofinancing 0.00 25 Oct 2012 0.62 0.00 3%

Loan 8273-VIE

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
11 Jul 2012 09 Apr 2013 09 Apr 2013 30 Jun 2018 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 10.00 Cumulative Contract Awards
ADB 0.00 11 Jul 2012 0.00 1.41 16%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 10.00 11 Jul 2012 0.00 0.46 5%

Safeguard Documents See also: Safeguards

Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

None currently available.

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

None currently available.


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