18:16 | 26/10/2024

Principles for Payment of Regular Expenditure Capital for BTL and BLT Projects

In my observation, currently, projects, works, and infrastructure are being invested in and constructed in the form of public-private partnerships. This form involves the participation of state management agencies and enterprises, organizations. I am researching issues related to the financial management of investment projects in the form of public-private partnerships. Could you please explain to me the principles of payment for recurrent expenditure for BTL, BLT projects? I am looking forward to your assistance.

According to Clause 1, Article 21 of Circular 88/2018/TT-BTC, the principles for the payment of regular expenditure capital in BTL and BLT projects are stipulated as follows:

- The payment of regular expenditure capital and revenue from public service provision to investors executing projects in the form of BLT contracts, BTL contracts must comply with regulations on the management and use of regular expenditure capital and revenue from fees, public service prices retained by the unit for use.

- The conditions for payment, amount of capital for payment, timing of payment, payment period, and payment documentation must be specified in the BTL project contract, BLT project contract.

- The payment time to the investor is as long as the service is provided according to the agreement in the project contract. Payment is made periodically based on the volume and quality of the service as agreed in the project contract.

The above are the regulations on principles for the payment of regular expenditure capital in BTL and BLT projects.

Sincerely!

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