From 2021, what is the procedure for selecting investors for PPP projects?

How is the selection of PPP project investors carried out? (Illustrative image)

Law on Investment under the Public-Private Partnership (PPP) method 2020 stipulates that the selection of PPP project investors must follow the following process:

1. Selection of a shortlist (if applicable);
2. Preparation for selecting the investor;
3. Organization of selecting the investor;
4. Evaluation of bidding documents;
5. Submission, appraisal, approval, and publication of the selection results of the investor;
6. Negotiation, completion, signing of the PPP project contract, and disclosure of contract information.

Note: Based on the specific conditions of each project, the competent authority shall conduct the selection of a shortlist after:

- Deciding on the investment policy as stipulated in point a, clause 1, Article 11;- Approving the project as stipulated in point b, clause 1, Article 11.

Furthermore, Article 29 of this Law stipulates that an Investor is eligible when meeting the following 06 conditions:

- Registered for establishment and operation granted by a competent authority of the country or territory where the investor is operating;- Independently accounts for financial matters; ensures competition in selecting the investor;- Not in the process of dissolution; not insolvent under the bankruptcy law;- Not currently banned from participating in PPP investment activities;- State-owned enterprises holding 100% charter capital must partner with private sector investors to participate in the bidding;- Foreign-invested investors must meet market access conditions when selecting investors for projects in sectors with conditional market access according to the investment law.

For further details, see Law on Investment under the Public-Private Partnership (PPP) method 2020 effective from January 01, 2021.

Ty Na

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