In Vietnam: What are O&M, BOT, BTO, BOO contracts?
In Vietnam: What are O&M, BOT, BTO, BOO contracts? Thank you!
What is a PPP contract? What are types of PPP contracts in Vietnam?
Pursuant to Clause 16, Article 3 of the Law on Public - Private Partnership Investment in 2020 stipulating as follows:
PPP project contract means a written agreement between a contracting authority and a PPP project investor or enterprise on the State's concession to that investor or PPP project enterprise to execute a PPP project according to provisions of this Law, including the following types of contracts:
- Build – Operate – Transfer contract (hereinafter referred to as BOT contract);
- Build - Transfer - Operate contract (hereinafter referred to as BTO contract);
- Build - Own - Operate contract (hereinafter referred to as BOO contract);
- Operate - Manage contract (hereinafter referred to as O&M contract);
- Build - Transfer - Lease contract (hereinafter referred to as BTL contract);
- Build - Lease - Transfer contract (hereinafter referred to as BLT contract);
- Mixed contract prescribed in Clause 3 of Article 45 of this Law.
What is an O&M contract?
In the past, as prescribed in the Decree 63/2018/ND-CP, O&M contract (Operate-Manage) means a type of contract to operate in whole or in part of a project between a regulatory agency and an investor or special purpose entity for a specified period of time.
However, currently, as prescribed in the Law on Public - Private Partnership Investment in 2020, O&M contract means the contract under which a PPP project investor or enterprise is assigned the right to operate and manage part or the whole of existing infrastructure works and systems within a predetermined term; upon expiry of such term, the PPP project investor or enterprise terminates the contract.
What are BOT, BTO, BOO contracts?
Pursuant to Clause 1, Article 45 of the Law on Public - Private Partnership Investment in 2020 stipulating as follows:
- BOT contract means the contract under which a PPP project investor or enterprise is assigned the right to build and operate infrastructure works and systems within a predetermined term; upon expiry of such term, the PPP project investor or enterprise transfers these works or systems to the State;
- BTO contract means the contract under which a PPP project investor or enterprise is assigned the right to build infrastructure works and systems; after the construction is complete, the PPP project investor or enterprise transfers these works or systems to the State, and is accorded the right to operate these works or systems within a specified period of time;
- BOO contract means the contract under which a PPP project investor or enterprise is assigned the right to build, own and operate infrastructure works and systems within a predetermined term; upon expiry of such term, the PPP project investor or enterprise terminates the contract;
Best regards!
