PROJECTS

PPP Transportation List for Vietnam

The problem

To help develop Vietnam’s transportation infrastructure, the Government of Vietnam sought to procure highway, rail, seaport, and airport projects as PPPs. However, the PPP unit within the Ministry of Transport of Vietnam lacked a methodology and process to screen and prioritize bankable PPP projects.

How we helped

Castalia developed a qualitative PPP screening tool for transportation projects. By using this tool, the PPP Unit could assess the economic, financial, and technical viability of potential PPP projects and score and prioritize projects. We applied this screening tool to Vietnam’s Master Plan and Development Strategy in transportation sectors and identified a long list of 46 potential PPP projects. We also developed a financial model to assess the initial financial viability of transportation projects in the long list and Government funding needs. We used this model to evaluate three potential PPP projects and trained the PPP Unit on applying the financial model.

Impact

The PPP Unit uses the screening tool and financial model we developed as part of its annual PPP project screening process. Twenty-three projects in the long list have advanced to the next stages of PPP procurement.