Total Payment to Investors Shall Not Exceed the State's Capital Contribution in the PPP Project

Accordingly, Circular 88 stipulates that when making payments for the State's capital contribution in a PPP project, the following principles must be ensured:

- The allocation and inspection of the allocation of public investment capital to support the construction costs of PPP projects are carried out according to the regulations as for state budget-sourced investment capital;- After receiving the detailed allocation document of the public investment capital plan from the ministries, central authorities, and localities, the State Treasury shall carry out payment control according to regulations;- The State Treasury, based on the payment request dossier from the agency or unit assigned to manage the State's capital contribution in the PPP project and the project contract, shall control payments according to regulations;- In case of the need to supplement the payment request dossier, no later than 04 working days from the date of receipt of the payment request dossier, the State Treasury shall issue a notice of refusal to pay or a written notification to the agency or unit assigned to manage the State's capital contribution in the PPP project, so that the agency or unit assigned to manage the State's capital contribution in the PPP project can supplement and complete the dossier according to regulations;- The total capital payment to the investor must not exceed the State's capital contribution in the PPP project that has been approved by the competent authority, and the capital payment to the investor in the year must not exceed the annual capital plan allocated for the PPP project as assigned. The cumulative capital payment for the PPP project must not exceed the medium-term public investment plan assigned;- The agency or unit proposing the payment of the State's capital contribution in the PPP project shall be responsible before the law and the competent authorities for determining that the investor has ensured the full disbursement of the equity rate and met the conditions for loan disbursement as stipulated in the project contract; be responsible for the accuracy of the executed volume and the payment request value; ensure the legality of the figures and documents in the dossier provided to the State Treasury and the State's functional agencies.

See details in Circular 88/2018/TT-BTC effective from November 12, 2018.

- Thao Uyen -

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