Experience in implementing PPP projects in recent years shows that the financial capacity of the investor is very important, the decisive factor for successful project implementation.

The  North-South expressway project  will tighten financial capacity for participating investors. This will lead to the possibility that domestic investors will find it difficult to mobilize capital.
Meanwhile, a prerequisite to create confidence for foreign investors is that the government’s minimum revenue guarantee and foreign currency guarantee has not been established in the prequalification documents. .
Eliminate investors who “do not hold the enemy”
According to the report of the Ministry of Transport, currently 11 North-South expressway  projects The survey consultant, technical design and cost estimate has been selected (including 3 public investment projects and 8 public-private partnership (PPP) investment projects. At this point, the project management boards must issue prequalification documents for 8 investment projects in the PPP
form.The Ministry of Transport also plans to finish prequalification around August 2019, Bidding partnerships are expected to start from October 2019 (after the technical design results and cost estimates are available) and complete around March 2020.
To evaluate investors’ capacity and experience. The Ministry of Transport uses the scoring method on a scale of 100. In which, the score is about the investor ‘s financial  capacity. select level 60% of the total score (corresponding to 60/100 points); Competency score of investors is 30% of the total points (corresponding to 30/100 points); points on the method of implementing the project of the investor 10% of the total points (equivalent to 10/100 points).
In the case of a partnership, the investor’s financial capacity will be the total capacity of the members of the partnership, and each member of the partnership must meet the capacity corresponding to the equity contribution. partnership under partnership agreement.
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According to Deputy Minister of Transport Nguyen Nhat, the selection of investors must apply international open bidding in 2 stages of pre-qualification and bidding. In which, the international prequalification stage (implemented on the basis of the approved feasibility study report) will assess the capacity and experience to select up to 5 qualified investors and have evaluation points. highest to the auction round.
The bidding stage (implemented on the basis of the results of technical design and cost estimates according to Resolution No. 20 / NQ-CP) will select an investor with the best technical score and bidding package price to project implementation.
“The experience of implementing PPP projects in recent years shows that the financial capacity of the investor is very important, is the decisive factor for successful implementation of the project. Bidding for the investor to implement the project must ensure honesty, objectivity and fairness, any domestic or foreign investor participating in the project must meet the requirements without exception, ”the Japanese Deputy Minister emphasized. .
Investors are still unknown
A preliminary assessment of the ability of investors to participate, according to the Japanese Deputy Minister, The fact that domestic investors meet the minimum criteria in accordance with the bidding law and Resolution No. 20 / NQ- Government shares (such as equity guarantee at least 20% of total investment capital; implemented projects with at least 50% of total investment capital of the project under consideration; equity projects Investor’s contribution is at least equal to the equity requirement of the project being considered; has constructed the project / bidding package worth 30% of the construction value of the project under consideration; …) is also very Therefore, it is necessary to have joint ventures with other domestic and foreign investors to ensure the required capacity and experience.
“In addition, in the condition that the long-term credit balance of domestic credit institutions is high, the ratio of short-term capital mobilization for long-term loans is at the prescribed limit, while the Bank The State has a policy to gradually reduce this rate, so the ability to mobilize capital from domestic credit institutions is also facing many difficulties, ”Mr. Nhat said.
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For foreign investors, the leader of the Ministry of Transport said that the Government also assessed that in the condition that Vietnam’s credit rating is not high, legal corridors and current conditions do not allow the Government to provide guarantees as required by foreign investors and banks (such as revenue guarantees, commitments to convert foreign currencies, third party insurance to replace the Government in implementing commitments in the contract), yet It can be confirmed that the bidding to select foreign investors will be successful.
“From reality, to successfully implement PPP projects depends a lot on the market (the level of risk, the attractiveness of the project, the profit of other fields, the ability to supply credit sources. long term, the level of national policy stability, …). In order to accurately assess the ability of domestic or international investors to participate, it is necessary to go through a pre-qualification step to have enough basis to evaluate, ”the Ministry of Transport expressed opinion.
The North-South expressway project, which requires financial capacity and strict conditions, will be unknown to domestic and international investors. (Photo: Viet Hung / Vietnam +)
Recently, a number  of foreign investors (such as Pacific Group, CGGC Group of China; Mitsubishi Corporation of Japan; Hyundai Group, Lotte of Korea; Acciona Group of Spain …) interested in and learn about information. On the North-South expressway project  , the Ministry of Transport as well as some experts said that, if the State agency does not have a strict management mechanism, it will not be able to control the examination. slow public, large capital team …
Even state management agencies will have to compensate for unforeseen risks such as delay in site clearance, delay in allocating state capital … whether home Investments come from China or any other country.
Emphasizing the question is that the State agencies need to identify risks and develop a reasonable risk allocation mechanism for the parties in accordance with the law of Vietnam, currently, the Ministry of Transport has mobilized an international transaction consultant (under the support of ADB and WB) to provide legal advice to prepare prequalification documents, bidding documents, draft contract and assist in house selection process. invest./.