The State Capital Contribution in PPP Projects

View Post in Vietnamese: >> Phần vốn góp của Nhà nước tham gia trong dự án PPP

As far as I know, investment in the form of public-private partnership (PPP) is a form of investment carried out based on a project contract between a competent state authority and an investor, project enterprise for the construction, renovation, management of infrastructure works, and provision of public services. Could you please explain how the State's capital contribution in a PPP project is regulated? Please assist me with this.

At Article 16 of Circular 88/2018/TT-BTC, the regulation on the State’s capital contribution to PPP projects is as follows:

- The State’s capital contribution and the use of the State’s capital in PPP projects shall be implemented in accordance with the provisions of Article 11 of Decree No. 63/2018/ND-CP.

- The State’s capital contribution to the project must be specified in the project contract regarding the ratio, value, schedule, and payment conditions.

- The State’s capital contribution shall only be paid after the completed construction investment volume has been accepted and in proportion to the investment capital sources as specified in the project contract, in accordance with the medium-term and annual public investment capital plan approved by competent authorities and stipulated in the project contract.

The above provisions concern the State’s capital contribution in PPP projects.

Sincerely!

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