Which entities have the authority to approve construction investment cost for projects utilizing public investment funding in Vietnam?
Which entities have the authority to approve construction investment cost for projects utilizing public investment funding in Vietnam?
Pursuant to the provisions of Clause 6 and Clause 10, Article 35 of Decree 10/2021/ND-CP stipulates as follows:
Agencies appraising and approving settlement are responsible for appraising and approving settlement within 9 months from the date on which adequate settlement documents are received.
Entitlement to approval of settlement of construction investment:
- For national important projects and other important projects in which investment is decided by the Prime Minister: superior authorities of investors shall approve cost statements of component projects funded by public investment capital and component projects funded by non-public investment state budget;
- For remaining projects, individuals capable of approving settlement of construction investment or authorizing approval of settlement of construction investment of completed projects shall decide on investment;
Which entities have the authority to approve construction investment cost for projects utilizing public investment funding in Vietnam?
When must a construction investment project finalize construction investment capital?
Pursuant to Article 35 of Decree 10/2021/ND-CP regulating settlement of construction projects utilizing public investment funding as follows:
- Construction investment projects must be settled in terms of construction investment after being transferred into use or permanently suspended at written request of competent authorities.
- Some regulations for settlement of construction investment are as follows:
+ Investment capital for settlement must be within total approved or revised investment as per the law.
+ Investment capital for settlement refers to the entire legitimate cost required in construction process to bring project structures into use. Legitimate costs are all costs within the scope of approved projects, designs, estimates; construction contracts signed as per the law, including approved amendments thereto. PPP projects shall conform to regulations and law on investment in form of public-private partnerships.
What are the responsibilities of investors for settlement of construction investment for projects utilizing public investment funding in Vietnam?
Pursuant to Clause 5 and Clause 9, Article 35 of Decree 10/2021/ND-CP stipulates as follows:
Settlement of construction investment
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5. Investors are responsible for settling construction investment within total approved investment of projects; prepare documents on settlement of construction investment and conversion of construction investment and request investment deciders to approve within 9 months from the date on which acceptance records of structures are signed and structures are transferred into use. For independent work items or structures within projects with multiple structures to be transferred into use, in case immediate settlement is required, investors shall report to investment deciders.
6. Agencies appraising and approving settlement are responsible for appraising and approving settlement within 9 months from the date on which adequate settlement documents are received.
7. Investors are responsible for dealing with public debts and finalizing project accounts at agencies paying investment capital within 6 months from the date on which decisions on approval of settlement of capital of completed investment project are issued. In case completed projects with approved settlement have not been assigned with adequate capital, investors shall report to investment deciders and relevant agencies to deal with public debts and finalize project accounts as per the law.
8. For construction investment projects utilizing public investment capital, after the end of the fiscal year, the investors shall make annual settlements as prescribed by the Ministry of Finance.
9. Investors that fail to perform settlement in a timely manner according to Clause 5 of this Article shall be met with penalties according to regulations and law on imposing penalties against administrative violations in construction investment.
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Accordingly, Investors are responsible for settling construction investment within total approved investment of projects.
At the same time, Investors prepare documents on settlement of construction investment and conversion of construction investment and request investment deciders to approve within 9 months from the date on which acceptance records of structures are signed and structures are transferred into use
Note:
- For independent work items or structures within projects with multiple structures to be transferred into use, in case immediate settlement is required, investors shall report to investment deciders.
- If investors are late in settlement after the 9-month period mentioned above, they will be handled according to the law on penalties for administrative violations in construction investment activities.
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