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PHuong tHao

Key points for investors on PPP projects

On 29 March 2021, the Vietnam’s Government issued Decree No. 35/2021/ND-CP guiding the implementation of Law on Investment in the form of Public-Private Partnership (PPP) 2020 (Decree 35) with effect from 29 March 2021. Below are key provisions.

INVESTMENT AREAS

Article 5 specifies five essential areas for investment including: transportation; power grids, power plants; irrigation, clean water supply and drainage, waste and wastewater treatment; healthcare, education and training; and information technology infrastructure.

INVESTMENT CAPITAL

Decree 35 specifies the required minimum total capital for each of the sectors eligible for PPP investment, particularly: Transportation; Power grid, power plant: at least VND1500 billion (approximately USD 65.2 million), with the exception of renewable energy – at least VND500 billion (approximately USD 21.7 million). Irrigation, water supply and drainage, treatment of wastewater and waste: at least VND200 billion (approximately USD8.7 million); Healthcare, education, training: at least VND100 billion (approximately USD4.3 million); Information technology infrastructure: at least VND200 billion.

APPRAISAL COUNCIL

There are two appraisal councils: interdisciplinary appraisal council and grassroots-level appraisal council.

An interdisciplinary appraisal council is to be established by the Prime Minister at the proposal of the Ministry of Planning and Investment (MPI). Chairman of the appraisal council shall be the Minister of the MPI, while the Deputy Chairman and other key positions are to be held by representatives from relevant ministries and government agencies. A grass roots-level appraisal council is to be established by Ministers, heads of government agencies or Chairman of the provincial people’s committee at the proposal of the standing agency of the appraisal council. The standing agency shall be an agency or unit responsible for PPP project management or finance and planning affairs at a ministry, government agency, other organisation or the Department of Planning and Investment.