Table of Contents 1 Introduction 1 1.1 Vietnam’s Rapid Growth and the Rationale for Expressway Development . 1 1.2 Overview of Master Plan for Expressway Development (MPED) 5 1.3 Objectives of the Study 9 2 Project Finance Experience in Vietnam 11 2.1 Spectrum of Public Private Participation (PPP) Models 11 2.2 Vietnam’s Experience with PPP 12 Project appraisal and selection process 12 2.2.1 Transparency of bidding and negotiation process 13 2.2.2 Time over-runs and cost escalation 13 2.2.3 Public acceptability of tolls 13 2.2.4 Government Management of 14 2.2.5 3 International Experience 15 3.1 Synthesis of International Experience 15 Policy, Legislation and Regulation 17 3.1.1 Planning and Priority Setting 17 3.1.2 Examine Funding Options and Provide Public Funding 17 3.1.3 Monitor Performance and Adjudicate Delivery 18 3.1.4 Delivery of Infrastructure Assets 18 3.1.5 4 The Financing Framework 19 4.1 Financing Requirements and Constraints on Finance 19 4.2 Sources of Finance and Life Cycle Cost 22 Domestic Sources 22 4.2.1 Private Debt/Equity 23 4.2.2 IFI Sources 24 4.2.3 Bilateral Loans 24 4.2.4 Private Public Partnerships or BOT Funding 25 4.2.5 Tolls Revenue 26 4.2.6 4.3 Comparison of Sources of Funding 28 4.4 International Experience and Lessons Learned for Vietnam 30 5 The Institutional Framework 32 5.1 The Framework of Legislation 32 Explicit Expressway Legislation 32 5.1.1 Transfer of Ownership Rights 33 5.1.2 Regulation and Ensuring Public Welfare 33 5.1.3 5.2 Institutional Structure – Roles and Responsibilities 35 Conceptual Model 35 5.2.1 Current Structure for Road Development 37 5.2.2 Organizational Models from International Experience 40 5.2.3 Evaluation of the Strengths and Weakness of Each Model 43 5.2.4 6 Summary of Key Issues and Recommendations 45 6.1 An Organization Option for Consideration 45 The Central Ministries (Planning/Finance/Transport) 45 6.1.1 Establish a Vietnam Expressway Administration 45 6.1.2
Table of Contents 1 Introduction 1 1.1 Vietnam’s Rapid Growth and the Rationale for Expressway Development 1 1.2 Overview of Master Plan for Expressway Development (MPED) 5 1.3 Objectives of the Study 9 2 Project Finance Experience in Vietnam 11 2.1 Spectrum of Public Private Participation (PPP) Models 11 2.2 Vietnam’s Experience with PPP 12 2.2.1 Project appraisal and selection process 12 2.2.2 Transparency of bidding and negotiation process 13 2.2.3 Time over-runs and cost escalation 13 2.2.4 Public acceptability of tolls 13 2.2.5 Government Management of 14 3 International Experience 15 3.1 Synthesis of International Experience 15 3.1.1 Policy, Legislation and Regulation 17 3.1.2 Planning and Priority Setting 17 3.1.3 Examine Funding Options and Provide Public Funding 17 3.1.4 Monitor Performance and Adjudicate Delivery 18 3.1.5 Delivery of Infrastructure Assets 18 4 The Financing Framework 19 4.1 Financing Requirements and Constraints on Finance 19 4.2 Sources of Finance and Life Cycle Cost 22 4.2.1 Domestic Sources 22 4.2.2 Private Debt/Equity 23 4.2.3 IFI Sources 24 4.2.4 Bilateral Loans 24 4.2.5 Private Public Partnerships or BOT Funding 25 4.2.6 Tolls Revenue 26 4.3 Comparison of Sources of Funding 28 4.4 International Experience and Lessons Learned for Vietnam 30 5 The Institutional Framework 32 5.1 The Framework of Legislation 32 5.1.1 Explicit Expressway Legislation 32 5.1.2 Transfer of Ownership Rights 33 5.1.3 Regulation and Ensuring Public Welfare 33 5.2 Institutional Structure – Roles and Responsibilities 35 5.2.1 Conceptual Model 35 5.2.2 Current Structure for Road Development 37 5.2.3 Organizational Models from International Experience 40 5.2.4 Evaluation of the Strengths and Weakness of Each Model 43 6 Summary of Key Issues and Recommendations 45 6.1 An Organization Option for Consideration 45 6.1.1 The Central Ministries (Planning/Finance/Transport) 45 6.1.2 Establish a Vietnam Expressway Administration 45 .
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