By Ellen Kerrigan Dry and Sesto E Vecchi*
I. Introduction
Vietnam introduced the concept of Build-Operate-Transfer ("BOT") investment projects1 when it amended its Foreign Investment Law in 1992.2 Since then, only one foreign-invested BOT enterprise, a water supply plant, has begun operations. Negotiations concerning several power plants have floundered on the price at which electricity can be sold. Two water supply plants have reportedly had difficulties coming to financial closure because the cost of supplying the water is greater than the cost which the Government says the Vietnamese people are willing to pay and because, as a result of inadequate planning, the current distribution system cannot handle an increase in water supply. Other projects are under discussion. Many more have been proposed, but have disappeared from the negotiation table. [See chart for a list of BOT projects and their status.]
