Determination of the Starting Price for Auctioning the Lease Rights to Exploit Infrastructure Assets

17:17, 11/07/2024

Recently, the Ministry of Finance issued Circular 47/2018/TT-BTC providing guidance on determining rental prices, starting prices for auctioning rentals, and temporary transfers of the rights to exploit transportation and irrigation infrastructure assets.

The starting price for auctioning the lease of the right to exploit infrastructure assets is the fixed price; the variable price is determined by the cost method, in which the fixed price and the annual variable price are determined as follows:

1. Fixed price:

The annual fixed price equals (=) Annual depreciation or amortization value of the asset plus (+) Annual principal and interest payments (if any) plus (+) Annual management and asset exploitation service costs.

Where:

- Annual depreciation or amortization value of the asset: Determined according to the guidelines of the Ministry of Finance.- Annual principal and interest payments: Determined based on the agreement or loan contract to invest in and construct the infrastructure asset.- Management and exploitation service costs of the asset managing entity suitable for each asset category include:- - Management staff costs;- - Material costs used for management work;- - Office supplies costs;- - Depreciation or amortization costs of fixed assets;- - Taxes, fees, and charges.- - Land rental (if any).- ...

2. Variable price:

The variable price is determined as a percentage (%) of the revenue from leasing and exploiting the infrastructure assets annually.

Circular 47/2018/TT-BTC is effective from July 1, 2018.

- Thanh Lam -

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