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PPP projects will be prioritized in using ODA capital

On May 2nd 2016, projects under the form of Public-Private Partnership (PPP) is going to be prioritized in using the Official Development Assistance (ODA) capital and concessional loans from foreign sponsors.                    

On March 16th 2016,  Government promulgated Decree. No 16/2016/ND-CP on management and using Official Development Assistance (ODA) capital and concessional loans from foreign sponsors. The Decree regulates on management and using above mentioned capital of foreign Government, international institutions, intergovernmental organizations or multi-national, Government Organizations authorized by foreign Government which support to State or Government of the Socialist Republic of Vietnam.

Some sectors will be prioritized in using this Funds, including: Supporting to implement programs, projects for Socio- Economic infrastructure; Supporting to analysis to complete Socio-Economic development policy and improve State management institution; Supporting the human resource development, Scientific research and technological development; Supporting environmental protection, response to climate change and green growth… Notably in the Decree, public-private partnership projects (PPP) also will have priority to access to aforementioned funds.
  
 
  Implementing well to manage for the ODA capital to avoid waste.

For each type of loan, the Decree provides clearly in principle to use the aforementioned capital. The non-refundable ODA capital will be prioritized to use for the projects supporting for policy development, institution development, enhancing the human capability; Supporting directly to improve economic life, culture, society and environment for the people, especially the poor in rural areas, mountainous and ethnic minority areas; developing health, education, scientific research, technology; preparing programs and projects using ODA capital, concessional loans and PPP projects. ODA capital is prioritized for using in preparation and implementation of programs and projects which cannot payback directly; programs and projects under the duties of the state expenditures budget have the ability to generate revenues to serve Socio-Economic  interests. Concessional loans are prioritized to use for the programs, projects which can payback… The aim of these provisions is to use aforementioned concessional loans effectively and intentionally as objective of the sponsors.

In addition, the Decree also regulates on formulation, evaluation, investment policy decision and establishment and approval of investment projects using ODA capital and concessional loans of foreign sponsors. This Decree shall take effect from May 2nd 2015; replaces Decree No. 38/2013/ND-CP dated April 23th 2013.

Luong Ngoc Quang – Vietthink law firm.
Last updated: 02/28/2017
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