On June 11, 2015, the Workshop on the Final Consultation on Public-Private Partnership (PPP) Draft Decree with Public and Civil Society Sectors was organized by Ministry of Planning and Investment and supported by the Asian Development Bank.
Mr. Manothong Vongsay, chairperson of the workshop went over objectives of the event and background of the draft of PPP Decree. The key objective is to welcome constructive comments from the concerned ministries and the civil society sector aiming to ensure the PPP Decree contains all necessary information. The chairperson also encourage the participants to express their thoughts in order to ensure effectiveness of managing the future PPP projects and bringing the benefits to all concerned parties.
The draft of PPP decree has been over several consultations and been revised 6 times. The several revisions were made in corresponding to comments/suggestions from wide range communities, for instance the concerned government agencies, private sector and as well as the international organizations. The most recent revision was brought the comments from IFC into the draft. The comments from JICA will be considered and put into the draft.
This final consultation workshop attracted several comments from both public, civil society and private sectors. It covered several aspects such as the definition, volume, mechanism, interpretation, scope, wording, roles, scale of the projects, etc.
The new revision of the PPP Decree will be made in according to those comments. Then, it will be submitted to Ministry of Justice and Government Office for further consideration and approval.
A public–private partnership from the open source site said it is a government service or private business venture which is funded and operated through a partnership of government and one or more private sector companies. These schemes are sometimes referred to as PPP, P3 or P3.
PPP involves a contract between a public sector authority and a private party, in which the private party provides a public service or project and assumes substantial financial, technical and operational risk in the project. In some types of PPP, the cost of using the service is borne exclusively by the users of the service and not by the taxpayer. In other types (notably the private finance initiative), capital investment is made by the private sector on the basis of a contract with government to provide agreed services and the cost of providing the service is borne wholly or in part by the government. Government contributions to a PPP may also be in kind (notably the transfer of existing assets). In projects that are aimed at creating public goods like in the infrastructure sector, the government may provide a capital subsidy in the form of a one-time grant, so as to make it more attractive to the private investors. In some other cases, the government may support the project by providing revenue subsidies, including tax breaks or by removing guaranteed annual revenues for a fixed time period.