Criteria for Analysis and Evaluation of the Financial Plan Feasibility of a PPP Project

Clause 8, Article 4 of Decree 28/2021/ND-CP stipulates the criteria for analyzing and evaluating the feasibility of the financial plan, including:

- Net Present Value (NPV);

- Internal Rate of Return (IRR);

- Benefit-Cost Ratio (B/C);

- The impact level of the financial indicators (mentioned above) when there are changes in total investment, operational costs, revenue, project contract duration;

- Based on the specific nature of the PPP project, the competent authority may stipulate additional financial indicators such as: debt-to-equity ratio, debt repayment capacity ratio, quick asset conversion ratio, liquidity ratio, capital preservation measures according to current legal regulations to select the most effective investment project.

Sincerely!