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NA deputies debate draft Law on PPP

HÀ NỘI — Private companies need to invest more in public private partnership projects to help Việt Nam develop, despite budget constraints. But laws must be tighter to ensure the right enterprises are selected.

These was an issue discussed during a meeting organised by the National Assembly (NA) on Thursday to review the draft Law on Public-Private Partnership (PPP).

Most NA deputies agreed the law was essential to increase investment capacity for public projects and public services.

But the meeting was told there is still room for improvement and ensuring transparency of PPP projects is key to building a better future.

According to NA deputies, the main problem which existed in PPP projects was how to select the right contractors.

Đặng Hoàng An, deputy minister of Industry and Trade, said special attention should be paid to the signing of contracts between the State and private enterprises.

He said the draft law should be supplemented with strict regulations relating to the selection of investors.

Nguyễn Văn Phúc, an economist, said it was necessary for residents and enterprises to have a certain understanding about the nature of public-private partnership.

“Private entities are not allowed to provide public services. Investing in the form of public-private partnership will create better products and services,"大众he said.

Nguyễn Đức Trung, deputy minister of Planning and Investment, said the draft law contains  一 二 chapters and  一 一 七 items based on existing regulations on investment and investment contracts in the form of PPP. It is expected to amend some regulations related to project scale and competence to decide on investment policy.

In accordance with current regulations, State's investment in PPP projects must be in line with procedures of the law on public investment.

This led to a lack of flexibility in capital arrangement because it would be adjusted with finance plans.

He said it was necessary to set forth a new rule on the arrangement of investment from the State in PPP projects.

The Ministry of Planning and Investment has proposed two options on allocation of State funds to PPP projects.

First was to set up a development fund to allocate State money and grant guarantees for PPP projects. The second option suggested reserving separate funds for PPP projects in mid-term public investment plans.

NA deputies said given the constraint budget, attracting private investment is essential to reduce pressure on the State budget.

Vũ Hồng Thanh, head of NA Economic Co妹妹ittee, emphasised the necessity of the law on PPP and the draft law would be submitted to the NA Standing Co妹妹ittee for consideration.

According to the Government's report on the implementation of PPP projects, as of January  二0 一 九, the country has mobilised about VNĐ 一. 六 quadrillion (US$ 六 九. 一 billion) from private investment to address urgent needs for infrastructure development. — VNS

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