HCMC – The Ministry of Transport has proposed amendments to the Public-Private Partnership (PPP) Law to address financial problems faced by build-operate-transfer (BOT) infrastructure projects.
In a proposal submitted to the prime minister, the ministry recommends adding provisions to allow the use of state funds to support or terminate BOT contracts signed before the PPP Law took effect in 2021.
Lawmakers reviewing the draft PPP Law revisions during the eighth sitting of the National Assembly have emphasized the importance of assisting older BOT projects to overcome their difficulties.
The Ministry of Transport, in collaboration with other agencies, has suggested including a transitional clause in the revised law to provide a legal framework for resolving ongoing issues. This would eliminate the need for ad hoc solutions to struggling projects.
To ensure transparency, the ministry is working with the Ministry of Planning and Investment to develop clear criteria for state intervention. These guidelines are intended to balance the interests of all stakeholders while preventing misuse of public funds.
A preliminary review identified 11 out of 140 BOT projects that require specific solutions, with many others experiencing revenue declines. Projects near newly constructed highways, such as those on National Highway 26 near the Khanh Hoa-Buon Ma Thuot Expressway and along National Highway 14, are among the hardest hit.
The proposed revisions to the PPP Law aim to clarify how state funds can be used to assist struggling projects, ensuring consistency in legal frameworks and providing long-term solutions for the challenges faced by BOT initiatives.
