05 Regulations on Management, Operation, and Business of PPP Projects

05 regulations on managing, operating, and conducting business for PPP projects (illustrative photo)

Public-Private Partnership Investment Law 2020 stipulates the management, operation, and business of PPP projects as follows:

1. PPP Project Management: Conducted according to the provisions of this Law, other relevant legal regulations, and the PPP project contract.

2. Conditions for the operation and business of works and infrastructure systems include the following:

- Except as prescribed in Clause 2 of this Article, the PPP project enterprise is entitled to operate and manage the works and infrastructure systems from the date the contract-signing agency confirms completion as prescribed in Article 61 of this Law.- For PPP projects applying the O&M contract type, the PPP project enterprise operates and manages the works and infrastructure systems from the date the PPP project contract becomes effective.

3. On the supply of public products and services:

- During the operation and management of works and infrastructure systems, the PPP project enterprise has the following responsibilities:- Fulfill the rights and obligations of providing public products and services and other agreements in the contract;- Ensure the use of works and infrastructure systems under the conditions stipulated in the contract;- Treat all users of public products and services provided by the PPP project enterprise equally; not refuse to supply public products and services to any users;- Promptly receive and address feedback from users regarding the quality of public products and services provided by the PPP project enterprise;- Regularly repair and maintain to ensure the safe operation of the works and infrastructure systems according to the design or process committed in the contract.

- The competent authority and the contracting agency cooperate with the PPP project enterprise to perform the responsibility stipulated at Point d, Clause 1 of this Article.

4. On prices and fees for public products and services:

- Stipulated in the PPP project contract on the principle of ensuring benefits for investors, the PPP project enterprise, users, and the State, creating conditions for investors and the PPP project enterprise to recover capital and gain profit. The pricing plan and price framework for public products and services over the contract period must specify starting prices and prices for each period, ensuring correctness, sufficiency, transparency, and openness of price-forming factors.

- The application of measures to support prices and fees for public products and services is implemented in accordance with the law.

- The agreement and adjustment of prices and fees for public products and services for each period in the PPP project contract must comply with the law on prices and fees.

- When adjusting prices and fees for public products and services, the disclosure of adjustment information is as follows:

Note: No later than 10 days before the adjusted prices and fees for public products and services take effect, the contracting agency shall publish information as prescribed in Article 9 of this Law. The PPP project enterprise shall publicly list the adjusted prices and fees for public products and services at the place of provision according to the law on prices and fees.

5. On monitoring the quality of public products and services:

- The PPP project enterprise must ensure and take responsibility for the quality of public products and services.- The contracting agency is responsible for organizing the monitoring of the quality of public products and services provided by the PPP project enterprise according to the PPP project contract.- If the quality of public products and services does not meet the requirements stipulated in the PPP project contract, the contracting agency shall request the PPP project enterprise to rectify within the stipulated period in the contract; if the PPP project enterprise fails to rectify or delays rectification, penalty measures in the contract shall be applied.- The contracting agency is entitled to hire consultants to support the responsibilities stipulated in Clause 2 of this Article. Consultant hiring expenses are paid according to the provisions in Clause 4, Article 59 of this Law.

More details can be found in Public-Private Partnership Investment Law 2020, effective from January 1, 2021.

Thanh Thao

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