Principles for Payment of State's Capital Contribution in PPP Projects

According to Clause 1, Article 17 of Circular 88/2018/TT-BTC, the principles for payment of the State's capital contribution to PPP projects are stipulated as follows:

- The allocation and inspection of the allocation of public investment capital to support construction costs of PPP projects shall be carried out in accordance with the regulations applicable to investment capital from the state budget.

- After receiving the detailed allocation document of the public investment plan from ministries, central authorities, and localities, the State Treasury shall implement payment control as prescribed in this Circular.

- The State Treasury shall base its payment control on the payment request dossier from the agency or unit tasked with managing the State's capital contribution in the PPP project and the project contract.

- In case additional documents for a payment request are needed, no later than 04 working days from the receipt of the payment request dossier, the State Treasury shall issue a notice of payment refusal or a written notification to the agency or unit assigned to manage the State's capital contribution in the PPP project, so that the agency or unit can complete the dossier in accordance with regulations.

- The total capital paid to the investor must not exceed the State's capital contribution in the PPP project as approved by the competent authority. The capital paid to the investor in any given year must not exceed the annual capital plan allocated for the PPP project as assigned. The cumulative capital payment for the PPP project must not surpass the medium-term public investment plan assigned.

- The agency or unit requesting payment of the State's capital contribution in the PPP project shall be responsible before the law and the competent authority for ensuring that the investor has fully disbursed the equity ratio and meets loan disbursement conditions as stipulated in the project contract; responsible for the accuracy of the work performed and the value requested for payment; and ensures the legality of data and documents provided in the dossier to the State Treasury and relevant state agencies.

The above outlines the principles for payment of the State's capital contribution in PPP projects.

Sincerely!