Investment Management under the PPP Method: Key Considerations.

Investment Management According to PPP Method, Important Points to Note (illustrative image)

Pursuant to Article 7, 8, 9 of the Law on Public-Private Partnership Investment 2020, regulations on the principles of investment management according to the PPP method, state management content on investment according to the PPP method, transparency, and publicity in investment according to the PPP method are as follows:

1. Regarding the principles of investment management according to the PPP method, there are 5 noteworthy points as follows:

- Compliance with the national socio-economic development strategy, plan, and related planning according to legal regulations on planning.- Ensuring the effective management and use of State resources in PPP projects.- The implementation of inspection, audit, and state audit activities, monitoring of PPP projects must not hinder the normal investment and business activities of investors and PPP project enterprises.- Ensuring public, transparent, equal, sustainable, and effective investment.- Harmonizing the benefits between the State, investors, users, and the community.

2. The public-private partnership form regulates state management content on investment according to the PPP method as follows:

- Promulgating, propagating, disseminating, and organizing the implementation of legal documents on investment according to the PPP method.- Summarizing, evaluating, and reporting on the implementation of investment activities according to the PPP method.- Inspecting, auditing, and supervising the implementation of legal regulations on investment according to the PPP method.- Resolving complaints, denunciations, handling violations related to investment activities according to the PPP method; resolving disputes in the selection of investors.- Organizing and implementing investment promotion, international cooperation on investment according to the PPP method.- Guiding, supporting, and resolving procedural issues as suggested by investors and PPP project enterprises when carrying out investment activities according to the PPP method.

3. The principle of transparency is regulated as follows:

- First: Information must be published on the National Bidding Network System including:

- Information on investment policy decisions, PPP project approval decisions;- Information on investor selection including: pre-qualification invitation notice, bidding invitation notice, shortlist, investor selection results;- Information on the selected investor, PPP project enterprise;- Main contents of the PPP project contract including: total investment; capital structure in the project; contract type; project implementation duration; prices, fees for public products and services; form and location of fee collection (if any) and other necessary information;- Settlement value of public investment capital in the PPP project in case public investment capital is used;- Legal documents on investment according to the PPP method;- Database about investors;- Information on resolving complaints, denunciations, disputes, handling violations of the law on investment according to the PPP method.

- Second, in addition to being published on the National Bidding Network System, the information specified at points a, b, c, and d of clause 1, Article 9 of the Law on Public-Private Partnership Investment must be published on the information portal (if any) of the competent authority.

- Third, the information specified in clause 1, Article 9 of the Law on Public-Private Partnership Investment is encouraged to be posted on other mass media.

More details can be found in the Law on Public-Private Partnership Investment 2020, effective from January 1, 2021.

Thanh Thao

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