Determining the Value of BT Investment Projects for Land Fund Repayment

1. The value of the BT Project recorded in the BT Contract includes all expenses for compensation, support, and resettlement (if any); construction costs; equipment costs; project management costs; investment and construction consulting costs; interest on mobilized investment capital; and other costs (excluding contingency costs for arising amounts and price slippage). The determination of these types of costs is in accordance with legal provisions on investment and construction and other relevant laws.

2. The value of the BT Project does not change from the date the competent state authority determines it. Except in cases where competent state authorities issue a document approving an adjustment of the scale, technical design of the BT Project, or interest in the financial plan of the BT Contract leading to a change in the value of the BT Project.

The adjusted value of the BT Project is determined according to legal provisions on investment and construction and other relevant laws at the time the competent state authority issues a document adjusting the scale and technical design of the BT Project. The adjusted value is recorded in an Appendix of the BT Contract signed between the competent state authority (or an authorized agency) and the Investor (hereinafter referred to as the Parties signing the BT Contract);

The adjusted value of the BT Project recorded in the Appendix of the BT Contract is included in the value of the BT Project for payment and final settlement of the BT Contract.

3. The value of the BT Project for payment is the value of the BT Project to be settled according to regulations on the final settlement of investment capital for construction works using state budget funds (hereinafter referred to as the BT Contract settlement value).

More details can be found in Circular 183/2015/TT-BTC effective from January 1, 2016.

- Ngoc Duyen -

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE