Investment Project for Construction Works Must Include the Following Explanatory Content

Investment projects for construction works must include the following explanatory contents (Illustrative image)

According to Circular 65/2011/TT-BCA, the explanatory contents of an investment project for construction work include:

- Name of the work;

- Project consultant;

- Construction location;

- Land use area;

- Legal basis: Decisions on scale, organization establishment ...; planning certificates, land use rights certificates (if any) ...; directives from leaders at various levels (if any); other documents related to the investment project (if any).

- Necessity and investment policy for construction work (briefly state the investment policy approved in which document);

- Scale and objectives of the construction project (specifically depending on the nature of the work);

- Investment form: New construction or renovation, upgrading, expansion;

- Project management form for construction works;

- Scale and construction area of the work: Standards applied according to the regulations of the Government of Vietnam regarding material and logistic standards for officers, non-commissioned officers, and soldiers serving in the People's Public Security forces, or other standards (if any);

- Components of the construction project:

- Fully state all the components of the project. For renovation and expansion works, fully state the current status, content, and area required for adjustment or addition;- State the land clearance plan, resettlement plan, and technical infrastructure support plan (if any);

- Environmental impact assessment, fire prevention and fighting solutions, and security and defense requirements;

- Total investment level for construction work:

- Basis for determination: Basic design including technology design (if any); related state policies; economic - technical indicators; price escalation factors over the construction period; construction price indexes …;- Basis for determining the value of the cost components of the total level including: Construction costs; equipment costs; compensation, support, and resettlement costs; project management costs; construction investment consulting costs; other costs; contingency costs;- Total investment level includes: Construction costs (GXD); equipment costs (GTB); project management costs (GQLDA); construction investment consulting costs (GTV); other costs (GK); compensation and site clearance costs, resettlement support (GDB); contingency costs (GDP): 10% for group C projects, 15% for group A and B projects (percentage rates may vary based on the construction period and annual construction price indexes corresponding to the type of construction taking into account domestic and international price fluctuations).- Total investment level (GXD+GTB+GQLDA+GTV+GK+GDB+GDP).

- Source of capital for construction work: State budget funds provided by the Ministry of Public Security; local budget support funds (if any); funds from other sources (if any); asset conversion of houses and land (if any);

- Project implementation phases: Based on the total investment and project scale, the investor proposes an annual capital allocation plan for each phase of the project to segment the implementation (Investment staging) appropriately. Implementation stages are ordered from phase I to the final phase;

- Conclusion and recommendations.

More details can be found in Circular 65/2011/TT-BCA, effective from November 18, 2011.

Thuy Tram

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE