Lawmakers propose to raise state capital ratio in PPP projects

A number of lawmakers suggested raising the ratio of state capital in public private partnership (PPP) road projects to 80% while discussing a draft resolution on special mechanisms and policies for such projects on November 9.
Lawmakers propose higher state capital ratio in PPP projects
Deputies at the NA agenda on November 9. (Photo: VNA)

They said some strategic projects require huge investment, so besides calling for capital in the PPP form, the State has to shoulder a larger share of the initial investment.

Besides, projects in underdeveloped areas and those with important security-defence significance where there is low transport demand also need higher ratio of State capital to make them feasible when calling for private capital.

In its proposal to the NA, the Government recommended raising the cap on State’s contribution in PPP infrastructure projects to 70% from the current 50%.

Minister of Planning and Investment Nguyen Chi Dung said it is necessary to lift the cap on state contribution to ensure the projects’ feasibility, but if the ceiling is too high, the meaning of PPP will be lost.

The ratio of 70-75% is rational, however, it could be higher in several projects, he said, adding he welcomed NA deputies’ opinions on the issues to complete the PPP law.

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(Source: VNA)