“The price of land at the time of transfer was
usually much lower than the price at the time when construction on the project
was completed, which resulted in losses for State budget,” she said.
The land prices in BT contracts are usually lower
than market prices as they are negotiated between just two parties, rather than
through bidding, she said.
She also said the audit of 21 BT projects found
they had violated legal regulations, causing over 3.8 trillion VND (167 million
USD) in financial loss to the State.
Pham Quang Tu from Oxfam Vietnam pointed out that
there are many loopholes in regulations on BT projects.
For example, Item 3, Article 155 of Vietnam’s Land
Law 2013 states that the State allocates land to investors to develop projects.
However, there isn’t any regulation specifying what kind of land may be
allocated or how its value should be determined.
Le Huy Trong, an auditing expert, said investors
have taken advantage of inadequate legal framework to earn more profits.
“BT projects are developed by private investors
without effective supervision and management of government agencies,” she said.
According to experts, in order to increase the transparency
in BT project implementation, it is necessary to review the regulations
allowing investors to propose and formulate investment projects. Current rules
give investors too much influence, increasing the risk of losses for the State.
Dang Hung Vo, former Deputy Minister of Natural
Resources and Environment, said that BT projects should be stopped altogether
in developed areas. To increase transparency in investment projects, BT
projects should only be allowed in some localities with weak budgets and a lack
of infrastructure.
The main disadvantage of BT projects is the
depletion of land resources, he said. Thus, it was necessary to develop a
mechanism for determining the value of infrastructure works and the value of
land paid to investors.
Moreover, all public-private partnership projects
must be fully publicised and put under the supervision of local people, and
relevant state agencies must fulfill their obligation to explain issues raised
by the people.
Dang Van Thanh, Chairman of the Vietnam
Association of Accountants and Auditors, said regulations on BT projects should
be improved, adding that inspections on the BT projects must be strengthened
during the approval and implementation phases of the projects.
Echoing Thanh’s suggestion, Tu said the completion
of a legal framework on BT projects under the auspices of the Public Investment
Law 2014 or Law on Public Asset Management and Usage was a must.
He also called for better law enforcement and
tightened inspections, particularly on decisions by State agencies to grant
licences for BT projects.
Meanwhile, Trong said it was necessary to put up
land for auction so that potential BT investors must bid on the opportunity.
Land value accounts for less than 50 per cent of BT projects’ investment, and
the remaining capital comes from the State budget or Government bonds, he
explained.-VNA