KPMG looks to push PPP

On December 2, 2011 in Hanoi, KPMG in cooperation with the Hanoi Department of Planning and Investment and the Government Public Private Partnership Taskforce organised a seminar and training on building financial models and public finance management in public-private partnerships (PPP).

PPP is defined as a long-term contractual relationship between a public sector party and a private sector party for the design, construction, financing and operation of public infrastructure by the private sector, with payments made over the life of the contract to the private sector party for the use of the infrastructure delivered.

The infrastructure is owned by the public sector or will revert to public sector ownership at the end of the contract. Do Thi Thu Ha, partner and head of Infrastructure at KPMG Vietnam, said PPP was still at the very early stage of development in Vietnam and one of the key success factors for PPP development was the public sector’s active role throughout such development; from policy and regulatory framework introduction, to the delivery of comprehensive feasibility studies and the efficient co-ordination with the private sector for each project.

“KPMG has been consistently recognised as the leading PPP financial advisor globally. We are delighted to have the opportunity to work with the Hanoi Department of Planning and Investment and the Government PPP Taskforce to organise this seminar for the officers of the authorities in the city and look forward to working hand in hand with the public and private sectors to make PPP a success in Vietnam,” said Ha.

David Ng, director advisory services KPMG Singapore, said that for a country to be successful in adopting PPP as a procurement option for its infrastructure needs there must be three elements in play.

"Firstly, strong sponsorship of PPP as a policy by the relevant authorities, secondly development of a legislative framework which is stable and allows for fair and transparent procurement processes and thirdly capacity development of frontline procurement staff,” he said.

Currently, implementation of PPP projects follows Decision 71/2010/QD-TTg and contract terms to harmonise investor and Vietnamese state interests. The MPI reportedly submitted, and is awaiting government approval, for five key infrastructure projects to get rolling under the PPP form.