(Luận văn thạc sĩ) public private partnership (ppp) in the environment sector and sustainable development issues

MINISTRY OF EDUCATION AND TRAINING FOREIGN TRADE UNIVERSITY DISSERTATION PUBLIC – PRIVATE PARTNERSHIP (PPP) IN SOLID WASTE MANAGEMENT IN JAPAN, LESSONS FOR VIETNAM Major: International Trade Policy and Law Full name: Nguyen Thi Hong Ly Ha Noi - 2017 Luan van MINISTRY OF EDUCATION AND TRAINING FOREIGN TRADE UNIVERSITY DISSERTATION PUBLIC – PRIVATE PARTNERSHIP (PPP) IN SOLID WASTE MANAGEMENT IN JAPAN, LESSONS FOR VIETNAM Major: International Trade Policy and Law Full Name: Nguyen Thi Hong Ly SUPERVISOR: Dr Vu Van Ngoc Ha Noi - 2017 Luan van DECLARATION I hereby declare that the dissertation entitled “Public – Private Partnership (PPP) in solid waste management in Japan, lessons for Vietnam” was written by myself and all information in this thesis has been studied and presented in accordance with academic rules and ethical conduct that I have fully cited and referenced in appropriate manner I further declare that the dissertation has not been submitted, in whole or in part, in any previous documents for a degree Student: Nguyen Thi Hong Ly i Luan van ACKNOWLEDGEMENT First of all, I would like to express my indebtedness to my Professor, Dr Vu Van Ngoc for his kind direction and proper guidance Without his supervision and instruction in every step, my dissertation could not be completed positively This is also a good chance to convey my sincere gratitude and especial thanks to all Professors and Lectures participating in the Master course of International Trade Policy and Law for their valuable lessons and useful knowledge that helped me a lot in practical works and life It is also my great pleasure to thank Faculty of Graduate Studies, Foreign Trade University for providing me such an opportunity to complete this Master course and for their continuous support in all my time taking part in the course Finally, my strong appreciation and attitude granted for my family, my colleagues, my bosses and friends for all of their enthusiastic support, encouragement and assistance during the period of this thesis’s preparation ii Luan van TABLE OF CONTENTS INTRODUCTION x CHAPTER OVERVIEW OF PPP IN SOLID WASTE MANAGEMENT 1 Definition, characteristics and types of PPP 1.1.1 Definition of PPP 1.1.2 Main characteristics of PPP 1.1.2.1 General characteristics of PPP 1.1.2.2 Advantages and Challenges of PPP 1.1.3 Types of PPP 1.2 Solid waste and role of solid waste management in the socio-economic development 12 1.2.1 Definition and overview of solid waste management 12 1.2.1.1 Definition 12 1.2.1.2 Overview of solid waste management 14 1.2.2 Role of solid waste management in the socio-economic development 16 1.2.2.1 Social aspects (Public health) 17 1.2.2.2 Economic aspects 18 1.2.2.3 Environmental protection aspects 19 1.2.3 Challenges of solid waste management in developing countries and in Vietnam 19 1.2.3.1 Technical Constraints 20 1.2.3.2 Financial Constraints .20 1.2.3.3 Institutional Constraints 21 1.2.3.4 Economic Constraints .21 1.2.3.5 Social Constraints 22 1.2.3.6 Vietnam 22 1.3 Necessity of PPP application in solid waste management 24 1.3.1 Reduction in management cost .25 1.3.2 More waste collection & treatment 25 iii Luan van 1.3.3 Awareness raising and better public participation in environmental protection activities 26 1.4 Factors influencing the success of a PPP project 26 1.4.1 Exogenous factors 27 1.4.1.1 Legal environment 27 1.4.1.2 Socio-economic environment 28 1.4.2 Endogenous factors 29 1.4.2.1 Market demand assessment .29 1.4.2.2 Quality of investors 29 1.4.2.3 Contract coherence 29 1.4.2.4 Management, supervision and support of investors by the public sector 30 CHAPTER 31 PPP IN SOLID WASTE MANAGEMENT IN JAPAN AND IN VIETNAM31 2.1 PPP in solid waste management in Japan 31 2.1.1 Overview of PPP in Japan 31 2.1.1.1 History of PPP 31 2.1.1.2 Differences between PPP projects and conventional projects 33 2.1.1.3 Classification of PPP .34 2.1.1.4 Project scheme of PPP 37 2.1.2 Legal and institutional framework of PPP in Japan .38 2.1.2.1 Outline of PPP Law 38 2.1.2.2 Implementation progress of PPP projects in Japan 42 2.1.3 Overview of solid waste management in Japan .43 2.1.3.1 Legal system of waste management in Japan 43 2.1.3.2 Institutional framework 45 2.1.3.3 Municipal Solid Waste Management in Japan 47 2.1.4 PPP in solid waste management in Japan .50 2.1.4.1 Types of PPP applicable in solid waste management .50 2.1.4.2 Procedures of PPP in solid waste management in Japan 51 iv Luan van 2.1.4.3 Case studies .58 2.2 PPP in solid waste management in Vietnam 64 2.2.1 General socio-economic and legal background of Vietnam in application of PPP in solid waste management 64 2.2.1.1 Socio-economic environment 64 2.2.1.2 Legal and institutional environment 67 2.2.1.3 Overview of PPP application in Vietnam .74 2.2.2 Current status of PPP in solid waste management in Vietnam 78 2.2.2.1 Necessity for PPP application in solid waste management in Vietnam 78 2.2.2.2 Status of PPP implementation in solid waste management in Vietnam 81 2.2.2.3 Existing solid waste management related PPP Projects 88 CHAPTER 93 LESSONS LEARNT FROM JAPAN AND RECOMMENDATION FOR VIETNAM 93 3.1 Lessons learnt from Japan 93 3.1.1 Enhance and complete the legal framework for PPP application in solid waste management 93 3.1.2 Improve investment conditions with better transparency .95 3.1.3 Develop and strengthen the capacity of independent management authorities especially in solid waste management 97 3.1.4 Goodwill cooperation between public and private sectors .99 3.2 Recommendations for Vietnam 100 REFERENCES 107 v Luan van LIST OF FIGURES Figure 1: Process of operating and managing solid waste 14 Figure 2: Differences between PFI and PPP .33 Figure 3: Comparison of Public Works under Conventional Delivery Method and PFI .34 Figure 4: Three types of PPP Project in Japan 36 Figure 5: General Project Scheme of PPP 37 Figure 6: Organization of PFI governmental authorities 42 Figure 7: Implementation progress of PFI projects in Japan (as of 09/2013) 43 Figure 8: Concept of sound material-cycle society of Japan 44 Figure 9: Legal system for Establishing a "Sound Material-Cycle Society" 45 Figure 10: Outline of Waste Management and Public Cleansing Law .46 Figure 11 Municipal Waste Treatment Methods in Japan 49 Figure 12: Procedures for contractor selection 55 Figure 13: Organizational arrangement Ohdate BOO incineration 59 Figure 14: Organizational arrangement Narumi BTO incineration plant 62 Figure 15: State Budget for environmental protection activities (Unit: billion VND) 65 Figure 16: State Budget Deficit comparing to GDP 66 Figure 17: Procedures of PPP in Solid Waste Treatment Project .87 vi Luan van (Luan.van.thac.si).public.private.partnership.(ppp).in.the.environment.sector.and.sustainable.development.issues(Luan.van.thac.si).public.private.partnership.(ppp).in.the.environment.sector.and.sustainable.development.issues(Luan.van.thac.si).public.private.partnership.(ppp).in.the.environment.sector.and.sustainable.development.issues(Luan.van.thac.si).public.private.partnership.(ppp).in.the.environment.sector.and.sustainable.development.issues(Luan.van.thac.si).public.private.partnership.(ppp).in.the.environment.sector.and.sustainable.development.issues(Luan.van.thac.si).public.private.partnership.(ppp).in.the.environment.sector.and.sustainable.development.issues(Luan.van.thac.si).public.private.partnership.(ppp).in.the.environment.sector.and.sustainable.development.issues(Luan.van.thac.si).public.private.partnership.(ppp).in.the.environment.sector.and.sustainable.development.issues (Luan.van.thac.si).public.private.partnership.(ppp).in.the.environment.sector.and.sustainable.development.issues(Luan.van.thac.si).public.private.partnership.(ppp).in.the.environment.sector.and.sustainable.development.issues(Luan.van.thac.si).public.private.partnership.(ppp).in.the.environment.sector.and.sustainable.development.issues(Luan.van.thac.si).public.private.partnership.(ppp).in.the.environment.sector.and.sustainable.development.issues(Luan.van.thac.si).public.private.partnership.(ppp).in.the.environment.sector.and.sustainable.development.issues(Luan.van.thac.si).public.private.partnership.(ppp).in.the.environment.sector.and.sustainable.development.issues(Luan.van.thac.si).public.private.partnership.(ppp).in.the.environment.sector.and.sustainable.development.issues(Luan.van.thac.si).public.private.partnership.(ppp).in.the.environment.sector.and.sustainable.development.issues LIST OF TABLES Table 1: History of Law and Guidelines of PFI .32 Table 2: PFI Procedure of Solid Waste Treatment Facilities Development in Japan 52 Table 3: Example of Risk Allocation in a Solid Waste Treatment Facilities Project 100 Table 4: Results of Corruption Perceptions Index (CPI) in Vietnam .67 Table 5: PPP-related Laws and Decrees in Vietnam .68 Table 6: PPP-Related Decision and Circulars in Viet Nam 69 vii Luan van 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