Many National Assembly (NA) deputies proposed increasing the rate of State capital in public-private partnership (PPP) infrastructure projects to 80 per cent during discussions of a draft resolution on special mechanisms and policies for road projects at their session on November 9.

Most agreed with the content of the draft resolution, which they said will help create favorable conditions to speed up the implementation of key transport projects.

However, a number of lawmakers raised concerns about the ratio of State capital in these projects. They said some strategic projects require huge investment, so when calling for capital in the PPP form, the State has to shoulder a larger share of the initial investment.

Deputy Lai Van Hoan from northern Thai Binh province said that underdeveloped areas and those with important security-defense significance, where there is low transport demand, also need a higher ratio of State capital to make projects feasible when calling for private capital.

Deputy Phan Duc Hieu from Thai Binh province, meanwhile, said it is necessary to raise the ratio of State capital to 80 per cent to contribute to creating room for localities to negotiate with investors.

In its proposal to the NA, the government proposed raising the cap on State contributions in PPP infrastructure projects to 70 per cent from the current 50 per cent.

Minister of Planning and Investment Nguyen Chi Dung stressed that it is necessary to lift the cap on State contributions to ensure project feasibility, but if the ceiling is too high the concept of “public-private partnership” will be lost.