PROJECTS

Vietnam Water Public Private Partnership Manual

The problem

In Vietnam’s main urban centers, 70 percent of the population is connected to the water supply, but 75 percent of water utilities do not provide continuous supply. The urban population is increasing by 1.7 million people annually, further straining urban water services. Investments of $600 million per annum are needed. Fiscal constraints meant the Government wanted to attract private finance; however, it lacked a framework for public private partnerships (PPPs) in the water sector.

How we helped

Castalia developed a Toolkit that set out a legal framework and process to implement PPPs in the sector, and developed PPP screening criteria. We reviewed 13 projects against the screening criteria and recommended a wastewater treatment plant in Binh Duong Province that can supply 50,000 cubic meters of bulk water each day as a pilot for the application of the new approach.

Impact

The Government now uses the Toolkit and screening criteria we developed to assess potential PPP projects in the water sector. This has strengthened the Government’s institutional capacity to screen and prioritize projects and helps it to develop a credible pipeline of PPPs. As of December 2018, three wastewater treatment plants have started operation in Binh Duong Province.