PPP Model Promises Capital Source for Transport
The Public Private Partnership (PPP) model should help provide a significant resource of capital for infrastructure development in Vietnam, said Deputy Prime Minister Hoang Trung Hai.
DPM Hải made the point at his meeting with the Ministry of Transport (MoT) to discuss ways to mobilize capital for transport development in the 2011-2015 period.
The MoT has been seeking capital for transport development projects by introducing mechanisms and policies to lure more social resources, especially via the PPP model.
Transport Minister Dinh La Thang said it would be very difficult for Vietnam to finalize transport projects using only State budget in the next five years.
The country needs over VND 150,000 billion for transport development projects. However, Vietnam is able to mobilize VND 88,000 billion from foreign sources and still lacks 75% of corresponding capital.
The Ministry of Planning and Investment (MPI) assessed that the application of the PPP model in line with international standards would resolve capital shortages for ongoing BOT and BTO projects in the country and mobilize more private sources for the work.
The MPI forecast that Vietnam would draw around US $70-80 billion from the PPP model with other countries over the next ten years.
VGP
Vietnamese
