Infrastructure is one of the three most significant areas in need of ongoing development and investment in Vietnam, as outlined in the national Socio- Economic Development Plan 2011-2015. Data from the G20 Global Infrastructure Outlook 2017 report shows that Vietnam requires US$605bn 1 of additional investment to meet its infrastructure needs by 2040.
To assist in realisation of this significant pipeline of projects, the Government is seeking to leverage the technical know-how and balance sheet capacity of private sector, using the Public Private Partnership (PPP) model of project delivery. There is significant capacity and interest, from both local and foreign companies, for investment in Vietnam’s infrastructure sector. To date, PPP in Vietnam has largely been confined to the energy sector, with opportunity to leverage learnings into other areas such as transport, water and waste.
The waste sector in particular is expected to require significant investment:
• Existing solid waste generation of approximately 13 million tonnes p.a.2
• Municipal Solid Waste (MSW) generation is increasing by 10-16% p.a.2
• The National Waste Management Strategy has a goal of treating up to 90%3 of solid waste in urban areas, and
• 85%3 of this waste is intended to be recycled or used to produce energy or organic fertilisers, and required facilities are not yet in place.
For PPP to be effective in the MSW sector, waste pricing mechanisms used to determine collection, transport, treatment and disposal price need to:
Align with the overall PPP framework which is primarily output based, and
Allow private sector to generate commercial levels of return.
Detailed contents following attached file:
ADB_VN_PPP_InceptRpt_DRAFT_NL_VN
ADB_VN_PPP_InceptRpt_EN