11:55 | 05/09/2024

Method for Determining the Proposed Winning Value of a PPP Project

It is known that the upcoming Decree guiding the selection of investors will come into legal effect. So how does it regulate the method of determining the value for proposing a winning bid for a PPP project?

According to Clause 4, Article 64 of Decree 25/2020/ND-CP (effective from April 20, 2020), the proposed bid value shall be determined by one of the following methods:

- The service price proposal does not exceed the service price determined in the approved feasibility study report (or the pre-feasibility study report for high-tech application projects), in accordance with the provisions of the law on prices, fees, and charges in the case of applying the service price method;

- The proposal for the State's capital contribution does not exceed the value of the State's capital contribution determined in the approved feasibility study report (or the pre-feasibility study report for high-tech application projects) in case of applying the State capital contribution method;

- The proposal for payment to the state budget in cash or the contract performance time is not longer than the time determined in the approved feasibility study report (or the pre-feasibility study report for high-tech application projects) in the case of applying the social benefits or state benefits method;

- The bid price, after error correction and deviation adjustment, minus the discount value (if any), does not exceed the value of the BT project determined in the approved request dossier for the project applying the BT contract.

Sincerely!

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