Vietnam terminates pilot PPP expressway project

The Vietnamese Prime Minister has terminated the Dau Giay-Phan Thiet Expressway project which was the first project in the country to be developed under a PPP model. Unresolved problems relating to legal framework for the risk-sharing mechanism on exchange rates and revenue guarantees were cited as the cause for the cancellation. The project required a $757.7 million investment and had been on the drawing board for more than 10 years. The Ministry of Transport is still attempting to develop the Tan Van-Nhon Trach section of the Ho Chi Minh City Ring Road 3 but has failed to attract foreign investment for the PPP portion of the project.