Decree 25/2020/ND-CP: New Regulations on Conditions for Bidding Participation

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According to Article 2 of Decree 25/2020/ND-CP, an investor participating in the bidding process is evaluated as legally and financially independent from the consulting contractor, competent state agencies, and the procuring entity as prescribed in Clause 4, Article 6 of the Law on Bidding if the following conditions are satisfied:

- The consulting contractor verifies and assesses the pre-feasibility study report, feasibility study report, design file, and estimate;- The consulting contractor prepares and evaluates pre-qualification documents, bidding documents, evaluates pre-qualification applications, bidding dossiers, and verifies pre-qualification results and investor selection results.

Furthermore, the investor participating in bidding and the consulting contractor do not possess the ownership ratio of 30% or more of the share capital or contributed capital of another organization or individual for each party. In case the investor participates in bidding as a consortium or the consulting contractor is selected as a consortium, the ownership ratio of the organization or individual in the consortium is determined by the total corresponding ownership ratio of each member in the consortium.

Competent state agencies and the procuring entity do not hold an ownership ratio of over 49% of the share capital or contributed capital of the investor. In case the investor participates in bidding as a consortium, the ownership ratio of the competent state agencies and the procuring entity in the consortium is determined by the following formula:

Where:

Xi: is the ownership ratio of the competent state agency, procuring entity in the i-th consortium member.Yi: is the contribution ratio of the i-th consortium member in the consortium agreement, and n is the number of members participating in the consortium.

See the full text of the regulation at Decree 25/2020/ND-CP effective from April 20, 2020.

Thu Ba

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