Transfer of Works, Infrastructure Systems, and Liquidation of PPP Project Contracts

Transfer of works, infrastructure systems, termination of PPP project contracts (illustrative image)

1. Regarding the transfer of works, infrastructure systems

- The transfer of works, infrastructure systems, and the determination of the quality and value of works, infrastructure systems before the transfer are carried out in accordance with the provisions of the PPP project contract. The remaining value of the works, infrastructure systems after the transfer is aggregated into state property and the state budget in accordance with the law on the management and use of public property and the state budget.- The procedures for handling transferred assets are carried out in accordance with the law on the management and use of public property.

2. Regarding the termination of PPP project contracts

- PPP project contracts are terminated in two cases:

- In the event that the parties have fulfilled their obligations under the contract, the signing parties acknowledge the completion and terminate the rights and obligations of the parties;- In the event that the contract is terminated ahead of time as stipulated in Clause 2, Article 52 of the Law on Investment in the Form of Public-Private Partnership 2020, the signing parties confirm the obligations that have been completed.

- The duration for the termination of PPP project contracts is agreed upon by the parties in the contract but does not exceed 180 days from the date the parties fulfill their obligations under the contract or the date the parties agree to terminate the contract prematurely.

- In the event that costs arise during the termination of the contract in the aforementioned cases, the contents of the termination must determine the obligations of the contracting authority and the PPP project enterprise with respect to those arising costs.

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

Thanh Thao

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