Public–Private Partnerships (PPP) Policy and Practice in Lao PDR

doi: 10.14456/mijet.2016.12

Abstract

In recent years the movement and development of the public-private partnership (PPP) have become increasingly popular for the government development projects. The infrastructure development projects are of particular. Laos has no exception. The role of the private sector has been gradually recognized since Lao PDR began to implement a market-oriented economy in 1986. The country’s efforts to modernize and industrialize the economy by 2020 and integrate itself into a single market, so called “AEC” or ASEAN Economic Community in 2015 means that Lao PDR will need a greater role of the private sector to play in the national development, especially the infrastructure industry. As a result, there has been development and emergence in recent years of the involvement of the private sector in public infrastructure development projects taking place in various channels and forms and through case-by-case negotiation. It has been observed that the involvement of the private sector in those projects is a myth due to a lack of specifically and clearly defined legal instruments to facilitate the project approval and operations. Lacking specific and clear legal instruments and tools creates an incomplete practice pertaining to PPP and that the government cannot make best use of the existence of the private sector today.