Recently, the Vietnamese government has selected Dau Giay-Phan Thiet expressway as the first public private partnership ("PPP") pilot project in Vietnam. This expressway is one of the important transportation infrastructure projects in southern Vietnam, connecting Ho Chi Minh City with Phan Thiet City in Binh Thuan Province. To this effect, on 13 May 2010, Deputy Prime Minister Hoang Trung Hai signed Official Letter No. 1169/TTg-KTN conveying the Prime Minister's opinion on the project ("Letter 1169").
Letter 1169 expresses the Prime Minister's approval of the PPP project after having considered: (i) proposals of the Ministry of Transport, the Ministry of Planning and Investment and Binh Minh Import-Export Production and Business Limited Liability Company (Bitexco); (ii) the opinion of the World Bank; and (iii) the conclusion of the Prime Minister at the Government's regular meeting on 7 June 2010 regarding implementation of the Dau Giay - Phan Thiet expressway project as a trial PPP form of investment.
The Prime Minister approved Bitexco as the first investor, International Finance Company (IFC - member of the World Bank Group) as the second investor, and the selection of the third investor to be made via an international competitive tendering process.
The Ministry of Transport is assigned to evaluate and approve the feasibility report for the Dau Giay - Phan Thiet expressway project in accordance with current regulations and to preside over co-ordination with the World Bank to submit to the Prime Minister a financial regime and managerial regime for the project; and on that basis, to formulate and promulgate a process for implementation of the project as a trial PPP form of investment.
The State Bank of Vietnam will co-ordinate with relevant agencies and with the World Bank to commence procedures in accordance with regulations to receive loans for the project during the 2011 fiscal year from IDA (the International Development Association, part of the World Bank) and IBRD (the International Bank for Reconstruction and Development, one of five institutions comprising the World Bank Group).
The People's Committees of Dong Nai and Binh Thuan provinces are delegated to act as the investors of sub-projects for site clearance and population resettlement within the locality.
For inquiries related to this Legal Update, please contact:
Dao Nguyen (dao.nguyen@mayerbrown.com)
Kevin B Hawkins (kevin.hawkins@mayerbrown.com)
Thinh Dan (thinh.dan@mayerbrown.com)
