Regulations on Investment Costs of Competent Authorities in PPP Projects

Regulations on investment costs of competent authorities in PPP projects (illustrated image)

Law on Investment in the Form of Public-Private Partnerships 2020 stipulates the investment costs of competent authorities in PPP projects as follows:

- Regarding the costs of competent authorities, contract-signing agencies, PPP project preparation units, procuring entities, the PPP Project Appraisal Council, and units assigned to appraise PPP projects:

- The project preparation costs of competent authorities and PPP project preparation units; the appraisal organization costs of the PPP Project Appraisal Council and units assigned to appraise PPP projects; the investor selection organization costs, contract signing costs by competent authorities, procuring entities are allocated from public investment funds, other legal sources, and calculated into the total investment of the project.- The selected investor is responsible for reimbursing the costs specified in Clause 1 of this Article to the state budget according to state budget laws or to the legal sources used for project preparation.- The project implementation costs after contract signing of competent authorities and contract-signing agencies are allocated from the recurrent expenditure funds of these agencies.

- Planning public investment funds used in the PPP project is regulated as follows:

- Based on the investment policy approved by competent authorities, public investment funds used in PPP projects are aggregated in the medium-term public investment plan;- Based on the medium-term public investment plan, the feasibility study report approved by competent authorities, the investor selection results, public investment funds used in PPP projects are aggregated in the annual public investment plan;- In case the PPP project needs to use public investment funds but is not yet in the list of projects in the medium-term public investment plan, it is considered by competent authorities for addition to this list and uses the reserve sources of the medium-term public investment plan. The procedures for adjusting the medium-term public investment plan are implemented according to the public investment law regulations;- For PPP projects applying BTL contracts, BLT contracts using public investment funds to pay for the PPP project enterprise, the aggregation of public investment funds in the medium-term and annual public investment plan is implemented as specified in Clause 1 and Clause 2 of this Article. Based on the PPP project contract duration, the public investment funds are continued to be allocated in the following medium-term periods.

- Estimating the recurrent expenditure funds and legal revenues for recurrent expenditure of state agencies, public service providers:

- Based on the investment policy decision, the feasibility study report approved by competent authorities, and the investor selection results, the contract-signing agency estimates the annual budget for recurrent expenditure funds, legal revenues for recurrent expenditure of state agencies, public service providers to pay for PPP project enterprises according to state budget laws.- For recurrent expenditures specified in Clause 3, Article 73 of this Law, competent authorities, and contract-signing agencies estimate the annual budget and submit it to competent authorities for approval according to state budget laws.

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

Thanh Thao

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE