The Public-Private Partnership (PPP) model, which emerged in the 1980s, has quickly become a popular solution for attracting private investment in infrastructure development and public service provision. This model allows the government and private investors to collaborate through long-term contracts, optimizing investment efficiency and enhancing the quality of public services. The government sets service standards, while the private sector is responsible for delivering the service, with payment based on performance. PPP benefits the government, businesses, and citizens by reducing the burden on the state budget and encouraging private sector participation in essential areas.
Globally, many famous infrastructure projects have adopted the PPP model, such as the canals in France in the 18th century, bridges in London and New York in the 19th century, and the model became widely popular from the 1980s. Although not all countries have succeeded, more than 100 countries have effectively implemented PPPs, demonstrating it as a powerful tool for promoting socio-economic development.
A prime example is the Queen Alia International Airport project in Jordan, implemented under a 25-year Build-Operate-Transfer (BOT) contract. The winning consortium carried out the renovation of the existing terminal, constructed a new terminal, and operated the airport with an increased capacity of 9 million passengers per year. This project successfully attracted investment from multiple countries and met stringent technical standards, from passenger space to baggage handling times.
Another notable project is the Lesotho Hospital, where compliance rates in operations are high, with 310,000 outpatient visits and 20,000 inpatient admissions annually. These successes highlight the potential of the PPP model in providing efficient and high-quality public services.
In Vietnam, the PPP Law of 2020 marked a significant step in promoting and expanding the ambitious PPP program. However, according to Professor Akash Deep from Harvard Kennedy School, there needs to be a framework for assessing and managing contingent liabilities arising from state guarantees. This would help the government transfer certain risks and obligations to private partners, optimizing project efficiency throughout its lifecycle.
Additionally, the scope of guarantees for specific PPP projects should be expanded based on market assessments, and guarantees should be considered as an alternative to public investment. PPP contracts should also be more detailed about government agency commitments, ensuring financial support and clearly defined implementation mechanisms. Contingent liabilities from PPP projects should be aggregated into a portfolio managed by a designated central agency to ensure the reliability of state guarantees and the financial viability of PPP projects.
Huy Dinh compiled from baodautu.vn