In response to Da Nang’s “Year for Business 2014” programme, a workshop about seeking more domestic and foreign investment in local public-private partnership (PPP) projects recently took place in the city.  The event was jointly organised by the Da Nang Young Officials Club and the city’s Young Entrepreneurs Association.

The Deputy Head of the Bidding Management Department under the Ministry of Planning and Investment, Ms Vu Quynh Le, affirmed that Da Nang is a pioneer in closely coordinating with the government’s relevant agencies to accelerate the implementation of PPP projects.  She added that many Japanese investors are now showing a keen interest in deploying 3 PPP projects in the city.  They are the Lien Chieu Port, the Hoa Lien Commune Water Supply Plant and a sludge treatment system.  If these projects are realised, they will boost the infrastructure development of the city as well as facilitate the deployment of other local PPP projects in the near future.

Introducing the Da Nang Mobile Entertainment Centre project

Meanwhile, the Director of the Da Nang Water Supply Plant, Mr Nguyen Truong Anh, noted that the city is in need of more capital to implement its infrastructure development projects.  In the current context of financial difficulties and given the dwindling State budget and the city’s limited budget, the PPP model is considered to be a powerful leverage for mobilising capital from the domestic and foreign private sectors to promote local infrastructure investment.

Mr Kozo Bando from Japan’s Kajima Corporation said that his company is conducting a feasibility study for the construction of a water supply plant in Hoa Lien Commune, utilising the PPP model.  He asked that the local authorities and the city’s Water Supply Plant support his company to implement the project on schedule.

A foreign company plans to invest 2 million USD in the Da Nang Mobile Entertainment Centre project in the city, using the PPP model.  The company will be responsible for the full cost of the project, as well as ensuring that the project will meet international standards.  In addition, support will be given to local small-sized enterprises which specialise in making souvenir products to help them promote sales.  The company will also hold numerous community activities as well as enhance the management of business premises for local evening and weekend fairs and other events.  This will help the city to attract more visitors.

Also at the discussions, representatives from the Asian Development Bank (ADB), the Japan International Cooperation Agency (JICA) and other financial organisations expressed their appreciation of the great efforts made by the local authorities to implement urban development projects over recent years.  In addition, they pledged to help the city to deploy other PPP projects whose feasibility studies are now underway.  In detail, a 6,637,902 USD plant to treat sludge from septic tanks and the 24,986,961 USD public bus network will be funded by the International Finance Corporation, a member of the World Bank Group.  Meanwhile, the 110 million USD garbage treatment management project at the Khanh Son Waste Dump will be sponsored by JICA.