What is review of compensation, support and residential resettlement expenses of completed investments in public investment-funded projects in Vietnam?
What is review of compensation, support and residential resettlement expenses of completed investments in public investment-funded projects in Vietnam? What is review of equipment expenses of completed investments in public investment-funded projects in Vietnam?
Please advise. Thankyou.
1. What is review of compensation, support and residential resettlement expenses of completed investments in public investment-funded projects in Vietnam?
In Clause 2, Article 40 of Decree 99/2021/ND-CP stipulates as follows:
2. Review of compensation, support and residential resettlement expenses:
a) For compensation, support and residential resettlement expenses incurred by investors or organizations in charge of compensation and site clearance tasks: Reconcile the amounts payable upon the investor’s request with the estimate of costs in the plan for compensation, support and residential resettlement, and the estimate of administrative costs of compensation, support and residential resettlement that are approved by competent authorities; in the list of payments to entities and persons receiving compensation that is signed in accordance with regulations, as a basis to determine total value to be finally accounted for. Review of the administrative expenses for compensation, support and residential resettlement work undertaken by the organization in charge of compensation shall be subject to current regulations on preparation of cost estimates, utilization and settlement of administrative expenses for compensation, support and residential resettlement in case of the state land expropriation.
b) For value of technical infrastructure obtaining decisions on approval of fund settlement from competent persons: Based on the decision on approval of fund settlement issued by competent persons, the payment request form submitted by investors in technical infrastructure, and payment proof, the amount of expenses for the completed parts of technical infrastructure shall be determined.
2. What is review of equipment expenses of completed investments in public investment-funded projects in Vietnam?
According to Clause 4, Article 40 of Decree 99/2021/ND-CP stipulates as follows:
4. Review of equipment expenses:
a) For the bids executed by investors themselves that are prescribed in law on procurement:
Where investors sign the contract with dependent accounting units to execute the bid: The review of the contract shall be based on the contractual price and carried out under regulations of points b, c, d, dd and e of this clause.
Where the investor signs an agreement to assign tasks to a unit affiliated to the investor for execution of the bid, the review shall be carried out as follows:
- Compare the list, categories, origin, quality, configuration and prices of equipment for which expenses are eligible for final accounting with those shown in the report on acceptance testing or the approved estimate of costs of equipment in order to determine the final expenses for purchase of equipment.
- Review expenses for processing and installation of equipment with respect to equipment that need to be processed or installed according to the approved cost estimate and are tested in accordance with regulations. The final amount shall be calculated by multiplying the successfully-tested completed quantities as prescribed by (x) the reviewed unit price.
- Review other associated expenses: Expenses for transporting equipment to the doorstep of the construction site, expenses for warehousing, storage and maintenance of equipment and other expenses.
b) For the turnkey contracts: Compare the list, categories, origin, quality, configuration and prices of equipment shown in the calculation chart of amounts requested for A-B final accounting with those shown in the contract, the calculation chart of contract value and reports on acceptance testing of completed quantities of the contract. Where the contractor fully conforms to requirements, perform jobs according to the required quantities and the quantities specified in the contract, then the amount eligible for final accounting is exactly the price of the entire turnkey contract already in effect. There is no need to re-compute the detailed unit price approved by competent authorities in accordance with the contract-awarding decision.
c) For the fixed-price contracts:
- Compare the list, categories, origin, quality and configuration of equipment shown in the calculation chart of amounts requested for A-B final accounting with those shown in the contract and the calculation chart of contract value; and those shown in documents attached to the contract with those the report on acceptance testing of completed quantities and contractual requirements in order to determine the completed quantities successfully tested in accordance with regulations.
- Compare the unit prices shown in the calculation chart of amounts eligible for A-B final accounting with the fixed unit prices shown in the calculation chart of contractual value.
- The final amount shall be calculated by multiplying the successfully-tested completed quantities as prescribed by (x) the fixed unit prices already undergoing the review.
d) For the adjustable-price contracts:
Based on specific contractual conditions, clarify the scope and forms of adjustment to the contract.
Where there is any adjustment to the quantities, it is mandatory to consult the report on acceptance testing of quantities to determine the completed quantities successful tested in accordance with regulations.
In case of adjustment to the unit price, it is obligatory to conform to the principles of adjustment to the unit price that are specified in the contract in order to determine the unit price used for final accounting.
Where there is any adjustment to regulatory policies, it is mandatory to consult contractual rules and policies applied during the contract execution period to determine the adjusted value.
dd) For the bids executed in the form of mixed price-based contract, it is necessary to clearly point out the scope of work or items of work corresponding to specific types of contracts like turnkey, fixed-price or adjustable price-based contracts. The partial review of the contract or the review corresponding to specific types of contract shall be subject to point b, c or d of clause 4 of this Article, respectively.
e) Where expenses are further incurred, in order to carry out the review, it is mandatory to consult regulations regarding adjustments to specific types of contract.
Best Regards!
