20:19 | 26/10/2024

Investor Profits in the Implementation of PPP Projects

As far as I know, investment in the form of public-private partnership (PPP) is an investment form between an authorized state agency and investors, or enterprises. Could you please clarify how the profit for investors in implementing PPP projects is regulated under current laws? I look forward to your guidance.

At Article 15 of Circular 88/2018/TT-BTC, the regulations regarding investor profits in the implementation of PPP projects are as follows:

- Ministries and sectors are responsible for issuing profit frameworks for PPP projects within the fields under their management scope, as stipulated in Clause 2, Article 73 of Decree No. 63/2018/ND-CP.

- The return on equity of the investor, calculated during the preparatory and approval phase of the pre-feasibility and feasibility study reports of the project, is determined based on the profit framework of the PPP project issued by ministries and central authorities and the returns of other similar PPP projects (if any).

- The return on equity of the PPP project investor is calculated from the time the project is approved by the competent authority to commence operation and exploitation.

- In the case of appointing an investor: the authorized state agency shall submit to the competent authority to allow the appointed investor to decide on a profit level for the investor up to the maximum equal to the minimum profit level in the profit framework issued by the ministries and central authorities.

The above is the regulation concerning investor profits in the implementation of PPP projects.

Respectfully!

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