Vientiane, 9th March 2022, Investment Promotion Department, Ministry of Planning and Investment as the Public-Private Partnership Office in cooperation with Poverty-Environment Action for Sustainable Development Goals (PEA) and United Nations Development Programme (UNDP) kicked off the 3-day training workshop on financial model for Public-Private Partnership (PPP) Project which developed to support the evaluation of PPP investment feasibility.
Public-Private Partnership (PPP) is an investment form that the Government of Laos is promoting to enhance the effectiveness and efficiency of investments in development projects that support the implementation of National Socio-Economic Development Plan (NSEDP) to achieve sustainable development and green growth. The government aims to attract more capital, innovation, modern technology and expertise from private sector to contribute to the country’s development which will reduce the risk and direct investment by the government. After the endorsement of the Decree on Public-Private Partnership in 2020, the Government has developed important legislations and tools to regulate PPP investments.
Ms. Thavichanh Thiengthepvongsa, the Deputy Director General of Investment Promotion Department stated that “Apart from developing policy and legal framework, it is important to enhance the capacity in regulating PPP investments for the government officials in various sectors. This training increases our knowledge and capacity in analyzing systematically financial aspect of the PPP investment, which support the government’s decisions regarding investment conditions, investment modality, investment term, financial benefit, potential risks, cost and benefit sharing between the government and investors.”
The training workshop was conducted between 9-11 March 2022 and there were 21 government officials from relevant sectors participated in this training. Participants had gained and exchanged knowledge on basic finance of investment project, cost and benefit sharing analysis, and scenario modelling to analyse difference risks that can impact project implementation. This training helps the government officials to apply the financial model confidently with the actual investment proposals.
Since 2018, Investment Promotion Department and Poverty-Environment Action for Sustainable Development Goals (PEA) has developed tools and capacity to promote and manage quality investment in Laos. Besides developing financial models for investment concession and PPP investment, the project has supported the development of the instruction to select and manage PPP investment, the guideline to develop Solicited Proposals and PPP investment model contract. The project is funded by United Nations Development Programme (UNDP), Government of Austria, Belgium, Norway, Sweden and the European Union.