Decree 69: Mechanism for Land Fund Payment to BT Project Investors

Land funds allocated for payment to investors are applied in the form of the State allocating land with a land levy or leasing land with a one-time land rent for the entire lease period in accordance with the provisions of land law.

Source: Internet

To be specific, in Decree 69/2019/ND-CP, it is stipulated that the land funds for payment to investors can be either land not yet cleared or land already cleared, ensuring the following conformable conditions:

- The land must be part of the land use planning approved by the competent state authority.- The land recovery for the land funds payment to investors implementing BT projects must comply with the provisions of land law.- In cases where cleared land is used to pay investors implementing BT projects, the provincial People's Committee must report to the Prime Minister of the Government of Vietnam for consideration and decision before deciding on the investment policy of the project.

Regarding the estimated value of the land funds to be paid to investors: The competent state authority selecting the land funds for payment to investors must ensure that the estimated value of the land funds is equivalent to the approved value of the BT project, including:

- When signing the BT Contract, if the actual value of the land funds has not been determined, the estimated value of the land funds equivalent is determined at the time of signing the BT Contract by (=) The estimated land area intended to be allocated multiplied (x) by The new land use purpose price in the Land Price List issued by the provincial People's Committee multiplied (x) by The land price adjustment coefficient for calculating land levy and land rent issued by the provincial People's Committee.- When the competent state authority makes a decision on land allocation or land lease, the land funds value payment shall be determined according to the provisions at Article 6 of Decree 69/2019/ND-CP.

For further regulations, refer to Decree 69/2019/ND-CP which is effective from October 1, 2019.

Thu Ba

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