Different investment forms to be used for infrastructure construction in 2016-2020.
According to Mr. Vu Tuan Anh, Deputy Director of Investment Management and Public-Private Partnership Projects under the Ministry of Transport, the investment needed for transport infrastructure in the 2016-2020 period is VND651.076 trillion ($29.85 billion) for roads, VND119.123 trillion ($5.46 billion) for railways, VND33.579 ($1.54) trillion for inland waterways, VND67.949 trillion ($3.12 billion) for maritime, and VND101.027 trillion ($4.63 billion) for aviation.
The ministry is implementing the socialization of investment in different forms: by a single enterprise, by cooperation between enterprises, public-private partnerships (PPPs), infrastructure leasing, franchising in the form of enterprise transformation, and the equitization of enterprises that operate infrastructure.
From 2011 to 2015 the ministry raised VND370.283 trillion ($16.98 billion) in investment in socio-economic infrastructure, of which investment in build-operate-transfer (BOT) and PPP projects were VND121.833 trillion ($5.59 billion), according to Deputy Minister of Transport Nguyen Ngoc Dong.
To raise private funds the government has recently issued new policies on PPP (in Decree No. 15/2015/ND-CP, dated February 14 2015) and the Law on Procurement of Selecting Investors (Decree No. 30/2015/ND-CP, dated March 17, 2015). Sectors for investment include transport, urban areas, electricity, socio-economic infrastructure, business infrastructure, and economic zones. From the previous three forms of contracts prescribed in Decree No. 108 and Decision No. 7 (BOT, build-transfer, or BT, and build-transfer-operate, or BTO), the two new decrees have changed these to seven forms: BOT, BTO, BT, build-operate-own (BOO), operation & maintenance (O&M), build-lease-transfer (BLT), and build-transfer-lease (BTL).