44507-003: Public-Private Partnership Support Project - Additional Cofinancing

Project Data Sheet (PDS): Details


Agence Fran?aise de D?veloppement (AFD) has agreed to provide a cofinancing loan of ?8 million (equivalent to $10 million) that will be used to fund the PDF. AFD and the government signed the loan agreement on 9 April 2013. The additional financing from AFD will be used to expand the scale of the PDF, and is consistent with project development objectives, government priorities, and ADB s current country partnership strategy . A cofinancing agreement between ADB and AFD now needs to be prepared, setting out the administration arrangements for the facility.

Project Rationale and Linkage to Country/Regional Strategy

The AFD cofinancing was initially part of the project concept, but at the time of ADB loan negotiations the government had not secured internal clearance to borrow from AFD. Therefore, AFD cofinancing was not included in the report and recommendation of the President for the project. AFD has completed negotiations with the government and signed an agreement for an ?8 million loan on 9 April 2013 under its sovereign loan conditions. The AFD loan will fund the PDF, and it will be administered by ADB under a proposed cofinancing agreement on a joint basis. Interest on the AFD loan has been computed at 2.38% per annum as per standard AFD-subsidized loan conditions (PS2). This cost will be directly borne by the government and will not be drawn from the loan proceeds. AFD will provide retroactive financing for project development expenses already incurred by the Authorised State Agencies or People s Committees subject to the latter following the prescribed procedure detailed in the procurement plan. The retroactive financing amount shall not exceed 20% of the respective AFD loan amount and shall be for eligible expenses incurred within 12 months before loan signing.


Increased private sector investment in infrastructure

Project Outcome

Description of Outcome

Stronger government capacity to catalyze PPPs and infrastructure investments

Implementation Progress

Description of Project Outputs

Institutional mechanisms for developing bankable PPP projects established More robust PPP enabling framework and stronger institutional capacity for PPP

Safeguard Categories

Environment: C
Involuntary Resettlement: C
Indigenous Peoples: C

Stakeholder Participation and Consultation

During Project Implementation
There is no change to the implementation arrangements for the project. The MPI will be the executing agency in collaboration with the PPP task force and other government ministries and agencies involved in PPP. The task force, chaired by the MPI and comprising the Ministry of Finance, Ministry of Justice, Ministry of Industry and Trade, Ministry of Transport, Ministry of Construction, State Bank of Viet Nam, and other relevant agencies, was established in mid-January 2011 to provide overall guidance to the government s PPP piloting initiative. The task force is being restructured to allow more senior representation of the ministries, which will enable it to function more effectively as an inter-ministerial coordination body for PPP. The task force will have high-level oversight of the PDF and will be the mechanism for coordination of line ministries on the use of the PDF. A dedicated project management unit will be established with staff assigned from the PPP office of the MPI for day-to-day management of the PDF under the project. The unit will be supported by a team of national and international experts on PPP who will be funded by the project. The estimated completion date continues to be June 2019.

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.

Project Data Sheets (PDS)

Translated PDS