What is PPP? What does PPP stand for?

PPP is an investment in the form of public-private partnership, an acronym for Public Private Partnership.

Public - private partnership investment refers to a form of investment carried out by the fixed-term cooperation between the state and a private-sector investor through conclusion and execution of a PPP project agreement in order to call for private sector involvement in a PPP project. (according to Clause 10, Article 3 Law on Investment by Public-Private Partnership 2020).

Characteristics of PPP investment form

Investment in the form of public-private partnership PPP has the following characteristics:

1- Subjects participating in PPP contracts include State agencies and investors and private enterprises.

Accordingly, State agencies are Ministries, Ministerial-level Agencies, Government Agencies, and People's Committees of provinces and centrally run cities.

Investors are organizations and individuals who coordinate with the State to implement projects on the basis of Project Contracts.

2- PPP investment sectors, including:

Clause 1, Article 4 of the Law on Investment in the form of public-private partnerships, Article 2 of Decree No. 35/2021/ND-CP stipulates that PPP investment sectors include:

a) Transportation;

b) Power grids, power plants, except hydropower plants and those subject to the state monopoly requirement as provided in the Law on Electricity;

c) Water resources and irrigation; clean water supply; water drainage and wastewater treatment; waste management and disposal;

d) Healthcare; education – training;

e) Information technology infrastructure.

3- PPP project contract means a written agreement between a contracting authority and a PPP project investor or enterprise on the State's concession to that investor or PPP project enterprise to execute a PPP project according to provisions of this Law, including the following types of contracts:

a) Build – Operate – Transfer contract (hereinafter referred to as BOT contract);

b) Build - Transfer - Operate contract (hereinafter referred to as BTO contract);

c) Build - Own - Operate contract (hereinafter referred to as BOO contract);

d) Operate - Manage contract (hereinafter referred to as O&M contract);

e) Build - Transfer - Lease contract (hereinafter referred to as BTL contract);

f) Build - Lease - Transfer contract (hereinafter referred to as BLT contract);

g) Mixed contract prescribed in Clause 3 of Article 45 of the Law on Investment by Public-Private Partnership 2020.