More policies proposed to unlock investment flow into transport projects

The Ministry of Planning and Investment (MPI) has submitted to the Government a draft resolution on pilot implementation of policies in order to pave the way for investment in transport projects across the country.

These policies, which are related to the ratio of the state capital in a PPP project, use of local budget funds for investment in inter-regional projects, and papers required for road infrastructure projects, would be implemented on a pilot basis within three years after the resolution is approved.

As provided in the draft, the ratio of the state capital in a PPP project would not exceed 50 percent of the total investment of such project, exclusive of expenses for compensation, site clearance, and support and resettlement.

According to the MPI, such a proposal aims at attracting and mobilizing more investment from the private sector to road projects while reducing the burden for the state budget and saving resources for state management of transport projects.

Noteworthily, the Prime Minister would be vested with the authority to decide on matters concerning projects to be implemented in two or more than two provinces. The cabinet head would also be empowered to assign provincial administrations to act as owners of local budget-funded projects on building national highways and expressways running through their localities. In addition, during the course of implementing an inter-provincial project, a locality would be allowed to use its local budget funds to support other localities.

In addition, the MPI proposes annulling the regulation requiring investors and construction contractors to carry out procedures for grant of licenses for the exploitation of minerals for use as ordinary construction materials, which are now required when preparing construction material survey dossiers serving the implementation of road infrastructure projects.-

By VLLF