Develop scientific arguments and propose solutions to improve the management of investment projects on infrastructure construction in the form of PPP in Vietnam.
Trang 11. Rationale of the thesis
Currently Vietnam has more than 200 projects implemented in the form of PPP, of which the total investment capital of the private sector is about 6.7 billion USD, of which BOT, BT and BOO models make
up the majority Areas of involvement in private investment include transportation, energy, telecommunications, supply and drainage Most infrastructure construction projects carry out PPP investments in Vietnam mainly in the fields of transport, energy and some projects in other areas. Infrastructure construction projects in PPP form are mainly implemented under BOT, BT, BTO and BOO Most BOT, BT, BTO and BOO projects in Vietnam still mainly apply the form of contractor designation in the process of selecting investors, leading to a reduction in competition and transparency in the selection of houses. investment, potential risks, losses and waste. Meanwhile, the announcement of the project and the list of projects has not been implemented seriously and publicly
The monitoring process in the implementation of PPP contracts is still loose, leading to the quality is often unsecured, subsidence, degradation but not timely overcome. The process of managing investment projects to build infrastructure in the form of PPP in Vietnam in recent years still faces many shortcomings from the decentralization of project management, socioeconomic efficiency and financial efficiency. for the parties involved in the implementation of PPP projects, the quality of the project, the progress and time of the project implementation, the project fund compared to the original Therefore, the PhD.candidate has
decided to select the thesis topic “Managing investment project on infrastructure construction in the form of Public Private Partnership in Vietnam” is a practical meaning in terms of theory and practice.
2.Objective and mission of the thesis
2.1.Objective of the thesis
Develop scientific arguments and propose solutions to improve the management of investment projects on infrastructure construction in the form of PPP in Vietnam
2.2. Mission of the thesis
Gathering, systematizing the basic arguments on management of infrastructure construction investment projects in the form of PPP; Survey, analyze and evaluate the actual management of investment projects on infrastructure construction in the form of PPP in Vietnam; Proposing some solutions to perfect the management of infrastructure construction investment projects in the form of PPP in Vietnam
3. Object and scope of research
3.1. Object of the thesis
The object of the thesis research is the theory and practice of managing infrastructure construction investment projects in the form of PPP
3.2. Scope of the thesis
+ As for spatial dimension:The topic has a research scope in state agencies participating in the
management of infrastructure construction investment projects in the form of PPP and investor organizations, management, implementation and transport operating infrastructure investment projects in the form of PPP in Vietnam
+ As for time dimension: The project focuses on researching the status of management of
infrastructure construction investment projects in the form of PPP in Vietnam in the period from 2010 to
2017 and proposing solutions to 2025 and orientation to 2030
+As for content:
The thesis studies the theory of management of investment projects on infrastructure construction in the form of PPP in Vietnam under the perspective of state management, including 04 contents: Strategy, planning of PPP projects; Organization of PPP project management apparatus; Organizations implementing
Trang 2PPP projects; Check, supervise, process and adjust PPP projects. In addition, the project has also selected and analyzed a number of specific PPP projects in a number of infrastructure areas such as: Road traffic, thermal power and water supply
4. Achievements of the thesis
In terms of theory: The thesis will gather, systematize, supplement and develop theoretical issues
such as concepts, content and characteristics of investment projects on infrastructure construction in the form
of PPP. ; manage investment projects to build infrastructure in the form of PPP; evaluation criteria and factors affecting the management of investment projects on infrastructure construction in the form of PPP
In terms of practicality: Overview of the current situation of investment projects on infrastructure
construction in the form of PPP in Vietnam and analysis of the situation of some projects in infrastructure sectors; analyze and evaluate the status of management of investment projects on infrastructure construction
in the form of PPP in Vietnam; Thereby proposing recommendations and solutions to adjust and increase the effectiveness of management of investment projects to build infrastructure in the form of PPP in Vietnam in the coming time
Chapter 1 OVERVIEW OF RESEARCH SITUATION AND RESEARCH METHOD
1.1. Overview of research situation
1.1.1. Research situation in the country related to the topic
Domestic topics have studied and solved a number of issues related to PPP and state management for investment projects on infrastructure construction in the form of PPP in Vietnam. These topics are important in providing secondary data and access theory for the research of the thesis
1.1.2. The situation of foreign research related to the thesis
Overseas studies have generalized the concept, content, form and factors affecting PPP as well as experiences of some countries on infrastructure construction investment projects in the form of PPP. This is
an important secondary source of resources to help build a theoretical framework for managing investment projects on infrastructure construction in the form of PPP in Vietnam, orienting the scientific approach to the thesis and providing the thesis a lot of useful information for the implementation of research on management
of infrastructure construction investment projects in the form of PPP such as transport, energy and water supply projects in Vietnam under current conditions
1.1.3. Knowledge gap
The topics have not yet considered the overall management of investment projects built in the form
of PPP of many fields of infrastructure with different characteristics, so the management of investment projects of each type has different points. especially in the process of preparing, implementing projects and exploiting projects
The topics have not been considered uniformly on the concept, content, evaluation criteria and factors affecting the management of infrastructure construction investment projects in the form of PPP. These are functions that should be supplemented and clarified both on the theoretical basis and the management of infrastructure construction investment projects in the form of PPP in Vietnam
1.2. Research Methods
1.2.1. Data collection methods
Methods of primary data collection: The thesis uses survey form, collects information, evaluation opinions of related objects to assess the research areas of the thesis. In addition, the thesis also uses interview methods, through experts
Trang 3 Methods of secondary data collection: The thesis gathers and collects secondary data through books, newspapers, specialized scientific journals, relevant dissertations, published data of Ministry of Planning and Investment, Ministry of Transport, Ministry of Construction, Ministry of Industry and Trade, People's Committees of provinces and cities under central authority and enterprises participating in PPP projects
1.2.2. Methods of general analysis
The thesis synthesizes data based on primary and secondary data, thereby using descriptive statistics method, deductive method to base on quantitative analysis of data from which to capture characteristics of management of infrastructure construction investment projects in the form of PPP of Vietnam
1.2.3. Inheritance method
The dissertation references and uses some results that have been studied before in management of infrastructure construction investment projects in the form of PPP to supplement the arguments and apply in the thesis. The thesis does not use this method to copy but use those results in a scientific and rational way to clarify the theoretical and practical basis of the thesis
Chapter 2 THEORETICAL BASIS ON THE MANAGING INVESTMENT PROJECT ON
INFRASTRUCTURE CONSTRUCTION IN THE FORM OF PUBLIC PRIVATE PARTNERSHIP 2.1. Overview of investment projects on infrastructure construction in the form of publicprivate partnership (PPP)
2.1.1. Investment project on infrastructure construction
2.1.1.1. Investment project on infrastructure construction
According to the Vietnam Investment Law 2014, the investment project is a collection of proposals
to remove medium and longterm capital to conduct investment activities in specific areas, within a specified period. An investment project to ensure feasibility must meet the following requirements: Scientific and systematic; Legal; Unity and practicality
2.1.1.2. Concepts, characteristics and classification of construction investment projects
According to Clause 15, Article 3 of the Construction Law 2014: "Construction investment projects are a collection of proposals related to the use of capital to conduct construction activities for new construction and repair. repairing and renovating construction works in order to develop, maintain, improve the quality of works or products and services within a specified period and expenses. In the preparation phase of construction investment, the project is expressed through reports of prefeasibility studies and construction investment feasibility studies or economic and technical construction investment reports. build
"
According to the stages of construction investment projects The process of formation and implementation of an investment project has undergone 3 stages: Prepare investment, prepare for implementation and implementation of the project
2.1.2. Investment projects for infrastructure construction in the form of PPP
2.1.2.1. Concept of PPP form and infrastructure construction investment project in PPP form
It is understandable that the publicprivate infrastructure investment project is a set of proposals for cooperation between the public and private sectors to abandon medium and longterm capital to carry out early activities. In specific areas, within defined time periods in which resources, risks, responsibilities and benefits are shared between the two parties to achieve a common goal
2.1.2.2. Characteristics of infrastructure construction investment projects in the form of PPP
Applicable to longterm projects (most of which last 2030 years), so it is most suitable for the field
Trang 4of infrastructure and environment; Create more investments for infrastructure construction; Helping stakeholders to share, allocate and manage risks in the project implementation process better and more effectively; Cost savings
2.1.2.3. The role of PPP investment in infrastructure development
Investment projects on infrastructure construction in the form of PPP have the following roles: Diversifying investments in infrastructure and investment in the form of PPP will create more growth, development and stability for businesses. of the private sector; PPP will help to distribute and manage risks more effectively; PPP will help infrastructure construction projects save more costs
2.1.2.4. Forms of investment projects to build infrastructure in the form of PPP
There are 7 forms of PPP including: Construction Business Transfer (BOT) contract; Construction Transfer Business Contract (BTO); Construction Transfer (BT) contract; Construction Ownership Business Contract (BOO); Construction Contract Transfer Rent Service (BTL); Construction Contract Service Lease Transfer (BLT) and Business Management (O&M) Contract
2.2. Managing investment projects on infrastructure construction in the form of PPP
2.2.1. Identify the concept of managing investment projects to build infrastructure in the form of PPP 2.2.1.1. Concept of management of infrastructure construction investment projects
Management of infrastructure construction investment projects is the process from project formulation, project appraisal, coordination of resources to build and operate projects and inspect and supervise the process of formation, development and end of the project to ensure that the infrastructure construction project is completed on time, within the approved budget, to meet the technical and quality requirements of products and services, by methods the best conditions allow
2.2.1.2. Concept of managing infrastructure construction investment projects in the form of PPP
It can be understood that the management of infrastructure construction investment projects in the form of PPP is the process from the formulation of strategy, planning, organizational apparatus, PPP project formulation, PPP project appraisal, coordination of resources. to build and operate PPP projects and inspect and supervise the process of formation and development of PPP projects to ensure benefits for investors as well as ensure that PPP projects are completed on time and within approved budget range, meeting the technical and quality requirements of products and services, by the best methods and conditions allowed
2.2.2. Objectives, principles, requirements and criteria for evaluating the management of investment projects to build infrastructure in the form of PPP
2.2.2.1. The objective of managing investment projects to build infrastructure in the form of PPP
The objective of managing infrastructure construction investment projects in the form of PPP includes: the supreme purpose that project management activities aim at, overall goals and specific objectives
2.2.2.2. Principles for management of infrastructure construction investment projects in the form of PPP
Project implementation management must be consistent with the type of capital used for construction investment and infrastructure construction investment projects under PPP must be strictly managed, comprehensive, in accordance with the order to ensure the item investment targets, quality, implementation schedule, cost savings and project impacts on landscape, environment, community safety, defense, security and effectiveness of PPP projects
Managing investment projects of PPP projects must ensure clear benefits and delineation for investors
2.2.2.3. Basic requirements for management of infrastructure construction investment projects in the form of PPP
Trang 5in the form of PPP; Requirements on institutional implementation of PPP; Assurance requirements for commercial, financial and economic activities for PPP projects and requirements for consultations with parties involved in PPP project management
2.2.3. Content of the management of infrastructure construction investment projects in the form of PPP 2.2.3.1 Develop strategies and planning of infrastructure construction investment projects in the form of PPP
Strategies and planning of investment projects for infrastructure construction in the form of PPP are the process of arranging and managing the works to accomplish the objectives of the PPP project. Investment
in infrastructure construction in the form of PPP is an important function of competent state agencies. From
an economic perspective, it is the process of orienting the way to develop and set up short and longterm plans to implement PPP projects
2.2.3.2. Organize the project management apparatus for infrastructure construction in the form of PPP investment.
The organization of managing investment projects on infrastructure construction in the form of PPP under the view of state management is the determination of the role and position of the government, thereby assigning powers of each level and process. The level of project management depends on the amount of capital, the size of each project will be managed and managed by which level Depending on the characteristics of each project, countries have different hierarchies
2.2.3.3. Managing the implementation of infrastructure construction investment projects in the form of PPP
For infrastructure construction investment projects in the form of PPP is the process of implementing policies to put policies into practice The process of organizing the implementation of infrastructure investment projects under PPP includes preparation, implementation, supervision and management of infrastructure construction investment projects under PPP
2.2.3.4 Check, evaluate, handle violations and adjust the process of implementing management of infrastructure construction investment projects in the form of PPP.
Checking, evaluating, handling violations and adjusting the process of managing the construction of infrastructure projects in the form of PPP investment are the activities that the project management agency performs to promptly detect and handle , adjusting the actual construction of infrastructure projects in the form of PPP investment which is facing difficulties Detailed assessment of infrastructure construction projects in the form of PPP investment is usually undertaken by specialized ministries
2.2.4. Criteria of evaluation of the management of infrastructure construction investment projects in PPP form
2.2.4.1. Criteria for validity
Effectiveness of management of investment projects for infrastructure construction in the form of PPP investment must meet specific requirements on investment capital, number of PPP projects, situation, implementation level and implementation time. PPP projects based on the objectives identified by the PPP project stakeholders
2.2.4.2. Criteria for efficiency
a) Socioeconomic efficiency indicators of PPP projects are shown in 3 basic indicators: Economic net present value (ENPV Economic Net Present Value); Benefit Cost Ratio (BCR) and Economic Internal Rate
of Return (EIRR Ecomomic Internal Rate of Return)
b) Financial performance criteria: Total cost throughout the project life cycle; Total revenue and other input parameters: loan interest, loan period; inflation rate; exchange rate; depreciation rate and other parameters
Trang 6The feasibility of the infrastructure construction investment project under PPP is often considered under the legal aspects and policy support; about technology; about the market's interest
2.2.4.4. Criteria of conformity
To consider the appropriateness of PPP projects based on the following criteria: Conformity with the planning, sector and regional development plans and local socioeconomic development plans; The ability to generate revenue to return capital to investors, prioritizing the project to generate revenue from business activities and the relevance of the information on having investors' interest
2.2.4.5. Criteria for sustainability
Sustainability in infrastructure construction investment management in the form of PPP investment is shown by the distribution of benefits between the parties involved in PPP projects, capacity and level of PPP implementation. In addition, the sustainability of infrastructure construction investment projects in the form
of PPP is based on the environmental impact targets
2.3. Factors affecting to the management of infrastructure construction projects in the form of PPP investment
For each specific research context will significantly affect the success of each PPP project, so to assess the factors affecting the management of infrastructure construction investment projects in the form of PPP can be viewed consider subjective factors and objective factors
2.3.1. Subjective factors
Policies of the Government and ministries and the capacity of managers of infrastructure investment projects according to PPP
2.3.2. Objective factors
The level of socioeconomic development of the country: The change in each stage of development of the state, leading to the development of all sectors
Qualifications and capacity of private partners when participating in publicprivate partnerships: are expressed in terms of finance, technology, management capacity,
2.4. Experience in managing infrastructure construction investment projects in PPP form of some countries and lessons learned for Vietnam
2.4.1. Experience of Canada
The form of publicprivate partnerships is carried out mainly in the model of DBFMO, DBFM in which the most common form is DBFMO
The legal system in Canada ensures that publicprivate partnership projects have transparent, public information, a healthy competitive environment for investors to implement contracts and build good projects
2.4.2. Experience of China
The financial structure of the transport infrastructure project in the form of publicprivate partnerships
of China is regulated to include three sources of capital: 30% budget capital, 60% loan capital and 10% private capital. Of the 30% of the budget, 10% comes from the central government, 20% from the local government where the project is implemented, the loan is borrowed from the stateowned private investor
2.4.3. Experience of Malaysia
In Malaysia there are no direct laws or regulations on the form of publicprivate partnerships. Instead, the Government builds a legal system to initiate an overall program of attracting private resources in the sector. the infrastructure. As a standard framework for project contracts with the goal of rebalancing the balance between the parties, the Project Development Exclusive Certificate to ensure the benefit of the
Trang 72.4.4. Lessons learned for Vietnam
Completing the system of mechanisms and policies to create a legal basis for the mobilization of private capital
In most countries, a specialized PPP management unit is set up to supervise the construction of contracts and the process of organizing bidding
Strengthening publicity, transparency, competition in building bidding process
Chapter 3 ANALYSIS AND EVALUATION OFTHE REAL SITUATION OF THE MANAGING INVESTMENT PROJECT ON INFRASTRUCTURE CONSTRUCTION IN THE FORM OF PUBLIC PRIVATE
PARTNERSHIPIN VIETNAM 3.1. Overview of the current status of infrastructure construction investment projects in the form of PPP in Vietnam in the period of 2011 2017
3.1.1. Overview of PPP forms in Vietnam
According to the Ministry of Planning and Investment since 1997, ministries and localities have signed and implemented PPP contracts with a total of more than 200 projects, headed by the Ministry of Transport with 80 projects, Next is the projects on clean water, waste water treatment, thermal power, solid waste and hospital and telecommunications projects Of which BOT, BOO and BT models account for a major proportion
According to the Ministry of Finance, the investment demand of Vietnam in the coming time is quite large,
in the period 20162020 is about 480 billion USD. In which, investment in 11 power plant projects in BOT form, with a capacity of 13,200 MW, investment capital of about 40 billion USD; about 1,380 km of expressways with about 11 billion USD; projects on environment, health and education about USD 29 billion; Investment sector has been expanded and PPP model in Vietnam has become more and more diversified
3.1.2. Overview of projects prioritized investment in infrastructure construction in the form of PPP in Vietnam
Since 1997, Vietnam has had more than 200 infrastructure construction investment projects in the form of PPP. However, according to the Ministry of Planning and Investment, there are still 69 projects that need to be prioritized for construction and exploitation. Including 42 transportation projects, 6 water supply projects, 5 wastewater treatment projects, 3 solid waste projects and 2 hospital projects
The total required investment capital for these 69 priority projects is about VND 334 trillion, of which toll roads and bridges account for about 74% of the total investment capital. Investment capital for the remaining sectors such as water supply, wastewater treatment, solid waste and hospital, is worth VND 26 trillion (7.8% of the total investment capital), and This field has only 16 projects
3.2. Current situation of managing some investment projects on infrastructure construction in PPP form in Vietnam
3.2.1. Current situation of managing some investment projects on construction of transport infrastructure 3.2.1.1. Overview of the current situation of investment projects to build transport infrastructure projects in the form of PPP
Among 80 projects, the Ministry of Transport implemented 71 projects with a total investment of VND 202,556 billion, of which 20 projects have been completed and put into operation with a total investment of VND 23,799 billion with total The length is 569 km, 51 projects are in the investment implementation phase with total investment of VND 178,757 billion with a total length of about 1700 km
3.2.1.2. Current situation of the process of managing investment projects to build transport infrastructure in the form of PPP in Vietnam
Current transport PPP projects of Vietnam follow three phases: Project preparation, investor selection and contract signing, implementation of PPP project contract. Like the project management structure in the transport
Trang 8sector in general, the management of transport infrastructure projects according to PPP is divided into 2 levels at the central and local levels
3.2.1.3. Current situation of managing some investment projects to build transport infrastructure in the form of PPP
a) Current status of management of Phu My Bridge construction investment project
Phu My Bridge project is invested in the form of construction business transfer (BOT) contract between
Ho Chi Minh City People's Committee and Phu My Bridge BOT Joint Stock Company (PMC). This is a cable stayed bridge across the Saigon River, 4 lanes, 2.4 km long connecting District 2 and District 7 of Ho Chi Minh City. The project was proposed by the HCM City People's Committee in February 2002. Experiencing many procedures and procedures such as making prefeasibility study reports, submitting to the Government and line ministries for consideration and selection of investors, developers and Appraising the feasibility study report, Phu
My Bridge BOT Contract was officially signed in February 2005. According to initial estimates, Phu My Bridge BOT Project has a total investment of VND 1,807 billion, excluding valueadded tax (VAT) and interest during construction. The investor will finance 30% of ecommerce with equity and the rest with bank loans
Regarding the preparation of a research report on the feasibility of the project:
+ Total investment: Ecommerce of the project is 1,806.52 billion VND (including the costs paid in foreign currency is 71277 million USD and the costs payable in the local currency is 698.17 billion VND). The cost of major construction investment is VND 1395.15 billion, accounting for 77.2%. Compensation for site clearance is VND 100 billion
+ Expected fee level: To payback, PMC will be charged at 10,000 VND / 4seat car 30,000 VND / container truck in the period 20092011, increased to 14,00075,000 VND in the period 20122016 and VND 15,000100,000 from 2017 to 2034
+ Time for implementing BOT contract: 26 years
Regarding the actual cost of the Phu My Bridge BOT investment project: The total investment of the project actually arises to VND 2,840 billion (including loan interest, which was originally entered during construction)
About actual vehicle traffic: at Phu My Bridge toll booth showing that the maximum capacity of the station is 18 lanes. The number of lanes can be operated immediately at 14 lanes. In fact, daily activities only have
2 motor lanes and 6 lanes of cars
Evaluate the effectiveness of Phu My Bridge BOT project management
BOT contract for PMC has the right to collect fees for 26 years on the basis of the total revenue from fee collection (VND 10,149 billion) just enough to return the owner's equity, repaying the principal and interest, and offsetting the cost of operation and payment Corporate income tax, and investor profits
Table 3.4: Results of feasibility analysis and debt repayment capacity of the project
Target
Capital Structure
(%)
Capital expenditures (%)
IRR (%)
NPV (VND billion)
Trang 9According to the above table, it can be seen that the Phu My Bridge BOT contract, this project has a positive financial NPV, a financial IRR greater than the cost of capital, a debt security ratio (DSCR) of 26 years
on average of 1.37 and no year when DSCR is less than 1
b) Status of management of investment projects on construction of highspeed motorways in Hanoi Hai Phong
The Hanoi Hai Phong highway project has a total construction length of 105.8 km, with 6 lanes and a design speed of 120 km / hour
Regarding preparation of feasibility study reports of the project:
+ Total investment: Approved in 2008, the total investment of the project is VND 24,566 billion and compensation and clearance costs of VND 2,500 billion
+ Capital mobilization: 51% from Vietnam Development Bank, 5% from Vietnam Bank for Foreign Trade, 10% from Vietnam Construction and ImportExport Corporation, 10% from Saigon Investment Joint Stock Company and from other foreign loans. Estimated vehicle traffic: design capacity of 70,000 vehicles / day and night. Project time: 35 years
In terms of actual costs and revenues: In fact during the construction process, the total investment amounted to VND 45,487 billion, an increase of about VND 21,000 billion, an increase of nearly 86% compared
to the initial investment. With total toll revenue of the whole project reaching VND 2,091 billion, on average, the daily turnover of this unit is about VND 5.7 billion / day
Regarding the actual traffic volume: in 2017, the exploitation flow reaches 25,00030,000 turns / day and night, only nearly 40% of the expected capacity. Meanwhile, Highway 5 is always in overload
Evaluate the effectiveness of highspeed project management in Hanoi Hai Phong
Although investors identified nearly 29 years of new capital recovery project. However, according to Vidifi's calculations, the IRR of the Project for 35 years ranges from 9.41% to 9.78% and the NPV value is from VND 5,356 billion to VND 6,945 billion. depending on whether or not to consider the currency depreciation against the foreign currency 4% during the exploitation period
c) Current situation of management of investment project for construction of highspeed motorway of Dau Giay Phan Thiet (DPEP):
This is part of the NorthSouth Highway located in the southern region of Vietnam. In 2013, DPEP is planned to be the first highspeed project implemented in the form of PPP in which the Ministry of Transport will contribute a part to the construction as a public investment while investors are expected to hope to invest in construction of the remaining sections, operation and toll collection for both sections. Dau Giay Phan Thiet project has a positive impact on the national economic development
3.2.2. Current situation of managing some investment projects of building thermoelectricity in the form of PPP
in Vietnam
3.2.2.1. Overview of the current situation of investment projects on construction of thermal power infrastructure
Although the number of investment projects in PPP energy sector in Vietnam is not too much, the actual size and investment amount for each project is very large. For example, the BOT project of Son My 1 Thermal Power Plant Binh Thuan (investor is IPRGDF SUE Europe, Sojit Group Japan and Pacific, with a total investment of 2.2 billion USD) . Since 2010, electricity is the only industry in the national energy system with PPP projects. The power sector has 19 thermoelectric projects invested under PPP, all of which are implemented under BOT form. The Ministry of Industry and Trade is the agency assigned by the Government to manage and monitor these 19 projects. Currently, thermal power projects exploited under the BOT form are expected to have a total capacity of about 24,000MW when put into operation
3.2.2.2. Current situation of management process of investment projects to build thermoelectricity in the form of
Trang 10Basically, the thermopower project management process according to PPP is like the process of transport infrastructure. However, for the construction of thermal power infrastructure, it is based on Article 6 of Circular 23/2015 / TTBCT on the Regulation on order and procedures for investment in thermal power plant project in the form of PPP contract of the Ministry of Public love
3.2.2.3. Current situation of managing some investment projects of building thermoelectricity in the form of PPP
in Vietnam
a) For management of Phu My 2 thermal power investment project
The project includes a 715 MW combined cycle gas fired power plant, which will be built, owned and operated on a BOT basis by an established limited liability company in Vietnam it is Mekong Energy Company Limited (MECO). The factory will be built in the area of Phu My Power Generation Center (PMPGC) operated
by EVN and located in Phu My Industrial Complex in Ba Ria Vung Tau near Ho Chi Minh City. The project will
be implemented under the BOT contract for 20 years
Private investors include: MECO Company of EDF International Group (equity contribution ratio: 56.25%), Japanese Sumitomo company (owned capital: 28.125%); and 15.625% of Japan's Tokyo Electric Power Company (TEPCO)
Regarding power capacity: In 2010, the total capacity is about 17,000 MW. Regarding the expected electricity price: In the period, the electricity price will increase from 5.1 cents/kWh to about 7 cents/kWh
Current situation of managing Phu My BOT construction investment project 2: The process of preparing feasibility study report of the project, the expected IRR and NPV index is the IRR of the project is 24% and NPV
is 667 million USD
b) Management of investment project of BOO construction of Yen The thermoelectricity
The Yen The Thermal Power Project was established to realize investment opportunities of EIC Energy & Industrial Development Joint Stock Company and meet Vietnam's increasing electricity demand. The project includes a coalfired thermal power plant with a capacity of 50MW, an average annual electricity output of 292.5 million kWh. The project has a total investment of 60,991,000 USD, of which loan is 48,902,000 USD, the average financial power price in the project life cycle is 5 cents / kWh
In view of the investor NPV (EIP) = 13,157,376 USD, IRR = 15.3%, B / C = 1.09, the payback period is 12 years. However, in the past years, the risks in current conditions such as inflation, fuel price abolishment, etc., for the project to not suffer losses, the EIC's selling price must be 7 cents / kWh or more. Even so, the project has contributed practically to national energy security, poverty reduction and economic development in the North East region
3.2.3. Current situation of managing some investment projects to build water supply systems in Vietnam
3.2.3.1. Overview of the current situation of investment projects on construction of water supply systems
Ministry of Construction as a specialized management only focuses on building and issuing policies. The equitization policy of stateowned companies has been enacted and this policy will affect a wide range of public service providers, including water supply companies. Accordingly, stateowned companies will be converted into limited liability companies or joint stock companies. This policy was launched in 2002 and is still being implemented. As of December 2014, there were 23 water supply companies established, in which the provincial People's Committee kept most of these companies' shares
3.2.3.2. Actual situation of investment project management process to build water supply system in the form of PPP
The process of managing PPP projects for clean water systems is based on Decree 15/2015 and is similar to the process for transport infrastructure The only difference is that for clean water, it is the Ministry of