Rental Rates for Water Infrastructure Exploitation Rights

Le Hai

22:34, 11/07/2024

The rental price for the exploitation rights of irrigation infrastructure assets is the amount of money that the entity leasing the exploitation rights must pay to the State for the use and exploitation of the assets in accordance with the signed Contract.

In which:

(1) The rental price is a fixed rental price or variable rental price or includes both fixed and variable rental prices:

- The fixed rental price is determined based on the depreciation of assets, principal and interest repayment (if any), management and exploitation service costs;- The variable rental price is determined as a percentage (%) of the annual revenue from exploiting the leased assets.

(2) The starting price for auctioning the right to exploit hydraulic infrastructure assets is stipulated as follows:

- In case the rental price is a fixed rental price, the starting price for auctioning is the fixed rental price;- In case the rental price is a variable rental price, the starting price for auctioning is the variable rental price;- In case the rental price includes both fixed and variable rental prices, the competent authority shall approve the proposal for choosing either the fixed rental price or the variable rental price to determine the starting price for auctioning, prioritizing the fixed rental price when all factors for determining the price are adequately available.

(3) The starting price for transferring the limited-term right to exploit hydraulic infrastructure assets is determined by the comparison method, the revenue-cost method.

The above content is stipulated in Article 20 of Decree 129/2017/ND-CP.

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