Vietnam: What are the procedures for selecting investors for PPP projects? What are the regulations on inspecting the investor selection of PPP projects?
What is a PPP project in Vietnam? What is the investor selection of PPP projects?
Pursuant to the provisions of Clause 9 Article 3 of the Law on Public–Private Partnership Investment 2020, a PPP project is a set of proposals related to the investment to provide public products and services through the implementation of one or the following activities:
- Construction, operation, and business of infrastructure works and systems;
- Renovation, upgradation, expansion, modernization, operation, and business of available works and systems;
- Operation and business of available infrastructure works and systems.
Regarding the investor selection of PPP projects, Clause 17, Article 3 of the Law on Public–Private Partnership Investment 2020 defines as follows:
Investor selection means the process of identifying investors with sufficient competence, experience, and feasible solutions to implement PPP projects on the principle of ensuring competition, fairness, transparency, and economic efficiency.
Thus, the investor selection of PPP projects is the process of selecting investors who are capable of implementing PPP projects based on certain criteria.
What are the procedures for selecting investors for PPP projects in Vietnam?
Pursuant to the provisions of Clause 1, Article 28 of the Law on Public–Private Partnership Investment 2020 as follows:
Investor selection procedures
1. An investor shall be selected according to the following procedures:
a) Drawing up the shortlist (where applicable);
b) Making preparations for the selection of the investor;
c) Selecting investors;
d) Evaluating bidding documents;
dd) Submitting, assessing, approving and publishing investor selection results;
e) Negotiating, finalizing and concluding a PPP contract, and publishing contract information.
Thus, the procedures for selecting investors for PPP projects in Vietnam are:
- Drawing up the shortlist (where applicable);
- Making preparations for the selection of the investor;
- Selecting investors;
- Evaluating bidding documents;
- Submitting, assessing, approving, and publishing investor selection results;
- Negotiating, finalizing, and concluding a PPP contract, and publishing contract information.
What are the regulations on inspecting the investor selection of PPP projects in Vietnam?
The investor selection of PPP projects in Vietnam is inspected according to the provisions of Article 87 of Decree 35/2021/ND-CP as follows:
Inspection of investor selection
1. Inspections include periodic inspections and unscheduled inspections that are carried out whenever there is a complaint or when requested by the Prime Minister, the President of the People’s Committee of the province, the head of the investor selection inspection authority prescribed in Clause 2 of this Article.
2. Ministers, heads of central authorities and other authorities prescribed in Point a and Point c Clause 1 Article 5 of PPP Law, Presidents of the People’s Committees of provinces, Directors of Departments of Planning and Investment, heads of specialized agencies affiliated to the People’s Committees of provinces shall supervise the investor selection by their inferior units and the projects they decide to invest in to ensure punctuality, effectiveness of investor selection, discover and handle violations against PPP laws.
3. The Ministry of Planning and Investment shall organize inspection of investor selection nationwide. Other Ministries, central authorities, other authorities, the People’s Committees of provinces, Departments of Planning and Investment, specialized agencies affiliated to the People’s Committees of provinces, the People’s Committees of districts shall organize inspection of investor selection at the request of the authorities responsible for investor selection inspection. Departments of Planning and Investment shall assist the People’s Committees of provinces in inspecting investor selection in their provinces.
Thus, the inspection of selecting investors of PPP projects in Vietnam shall be conducted according to the above-mentioned contents. In particular, the contents of inspecting the investor selection of PPP projects in Vietnam include:
- Periodic inspection contents:
+ Inspect the promulgation of instructional documents about investor selection and hierarchy in investor selection;
+ Inspect the preparation and approval of pre-qualification documents, negotiation documents, bidding documents, prequalification results and investor selection results;
+ Inspect the sequence and progress of project execution;
+ Inspect the contents of the concluded contract and legal basis for contract conclusion and execution;
+ Inspect the preparation and submission of investor selection-related reports;
+ Inspect the performance of investor selection-related inspection and supervision tasks;
- Unscheduled inspection contents: decided by the chief of the inspectorate.
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