|
Infrastructure fund to be created
An infrastructure investment fund will likely be set up to mobilise all State and private resources to develop the country’s infrastructure, according to the Ministry of Planning and Investment (MPI).
This was the first time an infrastructure investment fund under the public-private partnership (PPP) model had been suggested.
"The purpose of establishing the fund is to create favourable conditions for investors to use capital from the fund to invest in infrastructure development in Viet Nam," said the MPI’s standing deputy minister Truong Van Doan.
In fact, the demand for improved infrastructure in Viet Nam was very high, director of the ministry’s Department of Urban Infrastructure Development Nguyen Trong Tin said, adding that in the transport sector alone, demand for capital invested in road construction in the 2011-20 period reached hundreds of trillions of dong.
The PPP was an efficient model of co-operation between the State and private organisations to develop infrastructure within the State’s limited budget, Tin said.
According to Tin, the fund would probably be set up by the State and sponsors. Both public and private investors will be able to borrow capital from this fund at low interest rates to implement infrastructure projects.
Commercial banks were expressing willingness to join hands with the ministry to establish the fund and capital would then be turned over, Tin said.
"This means that capital from the fund will be invested in projects, and after the projects are completed and capital is recovered, the recovered capital will be reinvested in other projects," he said.
According to Doan, details like how to establish the fund, how partners will contribute to the fund, who will manage it, and how it will operate are still under discussion.
In the past, the ministry held several conferences on the PPP to build a legal framework for the co-operation model, Tin said.
Next year, the ministry would submit to the Government amendments to Decree 78/2007/ND-CP on investment under the Build-Operate-Transfer model, one of the PPP models to create a legal framework for PPP implementation in Viet Nam, Tin said.
VietNamNet, Viet Nam News
|
