PPP sparks IT activity

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The Ministry of Information and Communications (MIC) is reportedly proposing the prime minister to implement several information technology (IT) projects under the public-private partnership (PPP) model.

MIC deputy minister Nguyen Minh Hong said applying PPP to kick IT projects into gear would attract investment from diverse social resources, whereas abating implications resulted from public investment being slashed in areas under MIC management.

In early 2012, the Ministry of Planning and Investment (MPI) was ratified to carry out its Public Procurement Management Agency’s online procurement project under PPP model. The VND200 billion ($9.5 million) project earlier got the nod to get rolling using state budget capital.

According to Public Procurement Management Agency’s head Le Van Tang, implementing online procurement project under PPP model could not only save the state budget, but also ensure management efficiency.

“The state can inject $9.5 million into realising the project, but with current capacity it is uncertain whether state officials will be in a position to effectively operate and govern the project when it becomes up and running,” said Tang.

Similarly, Ministry of Education and Training’s Information Technology Training Department head Quach Tuan Ngoc said assigning IT projects to leading telecom firms like military-run Viettel Group or state group VNPT would be a smart option as the move could save time and costs markedly compared to using other investment model like using ODA.

Ngoc pointed to Viettel supporting the education sector to link all its member units from across the country via the latter’s internet connectivity project. The project costs around $20 million for two year implementation.

FPT’s chief executive officer Truong Dinh Anh assumed it would take a lot of time if waiting for state budget capital to jumpstart IT application projects in public hospital system’s management activities.

“FPT has high expectations and is willing to mobilise diverse financial sources to get hospital-based IT projects underway under PPP model,” Anh said.

Viettel deputy general director Tong Viet Trung agreed it would cause delays if IT projects at state organisations could only source capital from the state budget.

“In reality, there are a number of state projects, albeit getting approved state capital investment, could not get underway desperately waiting for capital injection,” said Trung, adding that Viettel was eager to climb onboard state agencies’ IT projects  to share difficulties.