IMPROVING THE LEGAL FRAMEWORK FOR PPP PROJECT FINANCE THROUGH CASH FLOW PROTECTION AND LENDER RIGHTS

Abstract

Public–private partnership (PPP) project finance depends on cash flows generated and maintained over the project contract’s term. This article examines Vietnam’s legal framework for PPP financing through the protection of lender rights and the continuity of public services. It uses doctrinal analysis, comparison across relevant domestic legal regimes and international project finance guidance. The analysis distinguishes the recognition of security and lender coordination rights from the conditions required to exercise them effectively. It also separates contractual cash flow controls from mandatory legal priorities, and revenue sharing or termination payments from guarantees of loan repayment. The article proposes clearer identification and registration of secured rights, coordinated procedures for project distress and a more precise framework for direct agreements among public authorities, lenders and project participants. It further develops recommendations for linking disbursement conditions, financial monitoring and remedial action. These recommendations are intended to improve the legal assessment and structuring of PPP loans without treating public support as unconditional protection against commercial risk.