Construction of Works and Infrastructure Systems for PPP Projects

Construction of works, PPP project infrastructure systems (illustrated image)

Law on Investment in the Form of Public-Private Partnership 2020 stipulates the construction of works and infrastructure systems of PPP projects as follows:

Firstly, regarding site preparation for construction: The Provincial People's Committee takes the lead, cooperating with the competent authority, and the contract-signing authority to organize compensation, support, resettlement, and complete the procedures for land allocation, land lease, and site handover to implement the project according to the land law, the PPP project contract, and related contracts.

Secondly, after completing the site preparation procedures, project design and budgeting are specified as follows:

- Based on the feasibility study report and the stipulations of the PPP project contract, the PPP project enterprise must perform one or more of the following tasks:

- Develop construction designs after the basic design for sub-projects or sections using public investment funds, estimating costs and sending them to the specialized construction body for appraisal as per construction law;- Develop designs, estimate costs for sub-projects or sections using public investment funds, and send them to the specialized body as per other relevant laws for appraisal.

- The PPP project enterprise approves the design and estimation as stipulated in clause 1 of this Article and sends the following documents to the contract-signing authority for monitoring and supervision:

- Approved design and estimation documents;- Design and estimation appraisal documents from the specialized body.

Thirdly, regarding the selection of contractors for PPP projects:

- The PPP project enterprise must issue regulations on contractor selection to be uniformly applied within the enterprise based on the following principles:

- Ensure fairness, transparency, and economic efficiency;- Ensure no negative impact on other interests.

- The selected contractor must meet all conditions. The PPP project enterprise is responsible for the quality and progress of the project implementation;- Encourage the use of domestic contractors for tasks that can be performed by domestic contractors;- Only use foreign labor if domestic labor does not meet the requirements.

Fourthly, regarding the management and supervision of the quality of works and infrastructure systems:

- The PPP project enterprise is responsible for organizing the management and supervision of the quality, acceptance of items, and the entire works and infrastructure systems as stipulated by law.

- During the implementation of the works and infrastructure systems according to the contract, the contract-signing authority has the following responsibilities:

- Organize the inspection of the PPP project enterprise's supervision process of construction works and infrastructure systems;- Inspect compliance with procedures, standards, and regulations in constructing works and infrastructure systems;- Organize quality inspection of sections, items, and the entire works and infrastructure systems in case of quality suspicion or at the request of the competent state management authority;- Request the PPP project enterprise to demand the contractor to adjust or suspend construction if the quality of work is deemed unsatisfactory.

- The contract-signing authority may hire consultants to support the responsibilities stipulated in clause 2 of this Article.

Note: The costs of hiring consultants for quality inspection and other related costs are handled as follows: depending on the case, the PPP project enterprise or another entity shall be responsible for these payments.

More details can be found in Law on Investment in the Form of Public-Private Partnership 2020, effective January 1, 2021.

Thanh Thao

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