Regulations on selection of enterprises to assign rural clean water supply works in Vietnam

This content has just been supplemented to Circular No. 76/2017/TT-BTC of the Ministry of Finance of Vietnam on amendments and supplements to Circular No. 54/2013/TT-BTC dated May 04, 2013 of Ministry of Finance of Vietnam, prescribing operation and management of centralised municipal water supply projects in rural areas.

to chuc lua chon DN de giao cong trinh cap nuoc sach non thon TT, Thong tu 76/2017/TT-BTC

According to Circular No. 76/2017/TT-BTC of the Ministry of Finance of Vietnam, limited liability companies, joint-stock companies, partnerships and private enterprises must have business functions appropriate for management and operation of projects.

Based on local budget appropriations available for use, provincial People’s Committees shall consider issuing decisions to pay in proportion to project value according to the following methods (this requirement must be present in invitations for bid and contracts for transfer of centralized municipal water projects in rural areas):

- Pay promptly after successful bidding for transfer contracts;

- Pay in stages or in proportion to the actual residual useful life of transferred projects.

Notably, appointing enterprises to operate transferred projects shall be subject to regulatory provisions of law on bidding. Invitations for bid shall be subject to regulatory provisions of law on bidding and must contain the following information:

- Method of operation or commercial use of the project;

- Value of each transferred project: Original cost of the new project or the actual residual value of the project (calculated as per Article 12a herein). This original cost is the contract price in relation to which bidders may offer to pay higher or lower;

- Method of payment of the winning bidder’s bid: pay promptly after successful bidding for transfer contracts; pay in stages or in proportion to the actual residual useful life of transferred projects.

Besides, Circular No. 76/2017/TT-BTC stipulates that after finishing the handing over and receipt of the works, enterprises assigned management of the works shall handle value of the assigned works as follows:

- For wholly state-owned enterprises receiving transferred projects as per point a of clause 1 Article 11 of Circular No. 54/2013/TT-BTC, the procedures for transfer and receipt of projects; accounting for value of the transferred projects shall be carried out according to the method of recording of increase in state capital at enterprises under law.

- For enterprises winning contracts, the following actions shall be taken:

+ Concluding contracts for transfer of projects with competent regulatory authorities;

+ Receiving, operating and managing projects by employing the agreed-upon method;

+ Paying in proportion to the contractual project value at the price determined on the bid-winning date according to the method of payment: pay promptly after successful bidding for transfer contracts; pay in stages or in proportion to the actual residual useful life of transferred projects.

View more details at Circular No. 76/2017/TT-BTC of the Ministry of Finance of Vietnam, effective from September 10, 2017.

Thu Ba

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