Final Settlement and Confirmation of Completion of PPP Project

Final settlement, confirmation of PPP project completion (illustration)

In Articles 60 and 61 of the Law on Investment in the form of Public-Private Partnership 2020, specific regulations on final settlement and confirmation of PPP project completion are stipulated as follows:

1. Final settlement of investment capital for the project, infrastructure system is regulated as follows:

- After completing the project, infrastructure system, the contracting authority shall finalize the public investment capital within the PPP project as follows:- In cases where public investment capital in the PPP project is managed and utilized in accordance with Point a, Clause 5, Article 70, and Clause 2, Article 72 of this Law, the contracting authority and the PPP project enterprise shall finalize the public investment capital within the PPP project in accordance with the laws applicable to public investment projects.- In cases where public investment capital in the PPP project is managed and utilized in accordance with Point b, Clause 5, Article 70 of this Law, the contracting authority shall aggregate the disbursed value for the PPP project enterprise that has been audited by an independent auditor, serving as a basis for finalizing the public investment capital within the PPP project. The public investment capital in the PPP project shall not exceed the state capital level determined in the contract.

- After completing the project, infrastructure system, the contracting authority and the PPP project enterprise shall finalize the construction investment capital for the project, infrastructure system. The finalized value of the construction investment capital for the project, infrastructure system, or the finalized value of the investment capital for projects without construction components, shall be determined based on the signed contract.

- The contracting authority shall agree with the PPP project enterprise in the contract regarding the selection of a competent and experienced independent auditing organization to conduct the audit of the construction investment capital for the project, infrastructure system.

2. Regarding confirmation of project, infrastructure system completion, the contents include:

- After completing the project, infrastructure system, the PPP project enterprise shall organize the acceptance of the project, infrastructure system according to the provisions of the construction law or other related laws, serving as the basis for preparing the application dossier for completion confirmation.

- Based on the application dossier for project, infrastructure system completion confirmation as prescribed in Clause 1 of this Article, the contracting authority shall inspect and issue the completion confirmation to the PPP project enterprise. If the PPP project enterprise completes the construction phase ahead of schedule or saves investment costs, this completion confirmation shall not affect the contract duration or the price and fees of public products and services determined in the contract.

See detailed regulations in the Law on Investment in the form of Public-Private Partnership 2020, effective January 1, 2021.

Thanh Thao

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