Principles for Developing Financial Plans for PPP Projects

18:19, 11/07/2024

Recently, the Ministry of Finance issued Circular No. 88/2018/TT-BTC stipulating certain contents on financial management for investment projects in the form of public-private partnerships and costs for investor selection.

The formulation of financial plans for PPP projects is implemented according to the following principles:

- All legal costs and revenues during the preparation, implementation, and operation phases of the PPP project must be fully reflected in the financial plan in Vietnamese Dong;- The financial indicators of the PPP project are calculated based on the discounted cash flows using the weighted average discount rate of the projected capital sources;- For PPP projects implemented in the form of BTL, BLT using regular expenditure sources to maintain public service provision activities, the revenue from these activities to pay the investor must comply with the provisions outlined in Clause 3, Article 10 of Circular 88/2018/TT-BTC.

View the full regulation at Circular 88/2018/TT-BTC, effective from November 12, 2018.

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