Regulations on costs for investor selection for land-based investment projects in Vietnam under Decree 115

Regulations on costs for investor selection for land-based investment projects in Vietnam under Decree 115 (Image from the Internet)

Regulations on costs for investor selection for land-based investment projects in Vietnam under Decree 115

Article 7 of Decree 115/2024/ND-CP stipulates costs for investor selection for land-based investment projects in Vietnam as follows:

(1) Cost norms for investor selection applicable to cases where the competent authority, interested party, bidding party, and appraisal team conduct the implementation directly:

- The cost for preparing the invitation for interest and bidding documents is calculated at 0.05% of the total investment capital but not exceeding 200,000,000 (two hundred million) VND;

- The cost for appraising each content of the bidding documents, the results of investor selection is calculated at 0.02% of the total investment capital but not exceeding 100,000,000 (one hundred million) VND;

- The cost for evaluating the project implementation registration dossier and bidding dossier is calculated at 0.03% of the total investment capital but not exceeding 200,000,000 (two hundred million) VND;

- In case of reorganization of investor selection, the cost for preparing the invitation for interest, bidding documents, and appraising the bidding documents is calculated at a maximum of 50% of the cost already incurred for the cost items specified at point a and point b, clause 1, Article 7 of Decree 115/2024/ND-CP.

(2) The competent authority, interested party, bidding party, and appraisal team can hire consultants to perform the tasks specified in (2) if their staff is not competent enough to perform them.

In this case, the cost for investor selection is applied as follows:

- The cost is determined based on the content, scope of work, implementation time, capacity, and experience of the consultant, wage norms as prescribed by law, and other factors;

- If there are no regulations on the wage norms of the consultant, it is based on the statistical experience of similar projects conducted within a determined time or the total investment capital.

(3) Cost items applicable to cases where the competent authority, interested party, bidding party, and appraisal team conduct the implementation directly:

- The cost for surveying and collecting project information as a basis to prepare the invitation for interest and bidding documents, including the cost of project proposal preparation for investment projects not subject to investment policy approval or investment policy approval request dossier for projects subject to investment policy approval (if any);

- Office supplies, translation, and communication costs;

- Conference costs serving the interest invitation, bidding, and bid opening;

- Costs related to posting information on investor selection on the National Bidding Network System;

- Other costs for preparing the invitation for interest, preparing and appraising the bidding documents, evaluating the project implementation registration dossier, the bidding dossier, and the investor selection results, bid opening, and resolving complaints.

(4) Costs in investor selection on the National Bidding Network System are applied following the corresponding regulations at point a, clause 11, Article 12 of Decree 24/2024/ND-CP.

Submission fees for bidding dossiers, fees for successful bidder investors, and fees for connecting the bid guarantee function on the National Bidding Network System are implemented according to the roadmap for online investor selection stipulated in Article 62 of this Decree.

(5) The funding source for the payments of the cost items in (1), (2), (3) is from the regular expenditure funds of the competent authority, interested party, bidding party, and appraisal team.

(6) The basis for establishing cost estimates includes: Investment policy approval decision or project information approval documents for land-use investment projects; policies in accordance with current legal provisions.

(7) The preparation, approval, and execution of cost estimates for investor selection costs specified in (1), (2), (3) follow the regulations on preparing, approving, and executing regular expenditure estimates from the state budget, including:

- Based on the provisions of the State Budget Law and the stipulations in (6), the interested party, bidding party, and appraisal team prepare cost estimates for each cost item specified in (3), consolidate them into their annual budget estimates, and submit them to the competent authorities for approval in accordance with state budget regulations;

- After the annual budget is approved, the competent authority allocates regular expenditure estimates to the units assigned to execute according to the regulations of the state budget law in Vietnam;

- If a project that requires bidding arises during the year, the interested party, bidding party, and appraisal team supplement the estimates and submit them to the competent authorities for approval according to state budget law regulations.

(8) Management of investor selection costs:

- Management, use, and settlement of investor selection costs are done according to the regulations of the state budget law. If the interested party, bidding party, and appraisal team are public service providers organizing investor selection tasks, the management, use, and settlement of investor selection costs follow the regulations on the financial autonomy mechanism for public service providers;

- In cases where consultants are hired to perform part or all of the tasks in (1), the total investor selection cost, inclusive of taxes, does not exceed the approved estimate for the consultant hiring task.

Payment value for consulting units is executed according to the contract between the competent authority, bidding party, interested party, and consulting unit. The management, use, payment, and settlement of payment costs for the consulting unit are done according to current legal regulations on the state budget.

(9) Management of revenue from investor selection:

(i) For international bidding, the selling price (including taxes) of an electronic bidding document is not more than 30,000,000 (thirty million) VND;

(ii) The revenues from selling electronic bidding documents specified in (i), after fulfilling tax obligations, are submitted by the bidding party.

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