05 Provisions on Investment Guarantees for PPP Projects

05 regulations on investment guarantees for PPP projects (illustrative image)

In Article 80 of the Law on Investment in the form of Public-Private Partnership 2020, the regulations on investment guarantees for PPP projects are specified as follows:

1. Investment Guarantees for PPP Projects

- Investors and PPP project enterprises are entitled to investment guarantees as stipulated by this Law and investment laws.- Regarding guarantees on access rights to land, land use rights, and other public assets, the content is as follows:- PPP project enterprises are allotted land, leased land, or permitted to use other public assets by the State to execute PPP project contracts in accordance with land law and public asset management law.- The purpose of land use for the project is guaranteed to remain unchanged throughout the entire duration of the contract, even in cases where the lender exercises their rights under Article 53 of this Law.

2. Guarantees on Public Service Provision are regulated as follows:

- PPP project enterprises are entitled to use public works and other ancillary constructions to execute projects as per the law.- In cases of public service scarcity or restrictions on entities allowed to use public works, PPP project enterprises are prioritized for public service provision or granted priority rights to use public works for project execution.- The competent authority has the responsibility to assist PPP project enterprises in completing necessary procedures to be prioritized for the use of public services and public works.

3. Guarantees on Mortgage Rights of Assets, Business Rights of Works, and Infrastructure Systems are specified as follows:

- PPP project enterprises are entitled to mortgage assets, land use rights, and business rights of works and infrastructure systems to lenders as per land and civil laws. The mortgage period does not exceed the contract duration unless otherwise agreed in the contract.- Mortgage agreements on assets, business rights of works, and infrastructure systems must be constructed in written form signed between the lender and contracting parties.- The mortgage of assets, business rights of works, and infrastructure systems must not affect the project's goals, scale, technical standards, implementation schedule, and other agreed-upon conditions stipulated in the contract.

Note: The contracting agency and competent authority are responsible for cooperating with local authorities where the PPP project is implemented to ensure security, order, and safety of people and assets of the PPP project enterprise and contractors during the project implementation.

For details, see Law on Investment in the form of Public-Private Partnership 2020, effective from January 1, 2021.

Thanh Thao

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