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HCMC to soon implement new PPP model
Thứ tư, 28/12/2016, 09:20 SA
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Hanoi, November 3, Secretary of HCMC Party Committee Dinh La Thang had a working session with Japanese former Minister of Land, Infrastructure and Transport Takeshi Maeda.

At the reception, representatives of Japanese delegation introduced new model of Public Private Partnership (PPP) which have been successfully implemented in Aichi prefecture (Japan).


This is new PPP model, a combination of old PPP model and available PPP model, the model requires the Government and businesses to share profits and risks together. Specifically, both sides will determine traffic flow expected in a route, if the practical traffic flow is lower than 6% as expected, the Government will share risks with businesses, vice versa, both sides with share profits.
 
In this model, businesses are not allowed to increase toll level without approval from authorized agencies of the Government. A new point of this new PPP model is that the model not only develops traffic infrastructure but also promote development of trade and transport projects including hotels, trade centers which contribute to the socio-economic development of localities.

In case of applying in Vietnam, there will be participation of large-sized contractors, infrastructure development funds, banking and credit organizations and JICA to arrange capitals with low cost. Mr. Takeshi Maeda said Japanese delegation will work with Ministry of Transport and HCMC’s authority to launch a pilot project. If everything goes smoothly, it is expected to launch in March 2017.


HCM CITYWEB

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