Vietnam: Guidance on formulation, submission and approval for financial statement of a completed PPP project

According to Circular No. 120/2018/TT-BTC of the Ministry of Finance of Vietnam, when the PPP project work is completed, relevant agencies must formulate, submit and approve the PPP project's settlement, specifically as follows:

- Agencies in charge of preparing statements of completed PPP projects:

+ Agencies assigned by the Ministry of Transport to manage the State contribution to PPP projects shall take charge of preparing statements of the State contribution for covering costs of works performed by regulatory authorities.

+ Investors shall prepare statements of construction works that they execute and complete as regulated.

- Documents submitted for approving the financial statement of a completed PPP project (01 set of which shall be sent to the agency in charge of verifying and approving the financial statement) include the documents prescribed in the Ministry of Finance’s Circular on financial statements of completed projects funded by the state budget, project contracts and their appendixes (if any).

- Power to give approval for financial statements of completed projects: The Minister of Transport of Vietnam.

- Agency in charge of verifying financial statements of completed projects: The Ministry of Transport of Vietnam.

- Auditing of financial statements of a completed project: The Ministry of Transport and the investor shall reach an agreement on employment and principles for selection of a qualified and experienced independent auditing firm to perform the auditing of the project's investment capital.

- Project statements shall be verified in accordance with regulations of the Ministry of Finance’s Circular on statements of completed projects funded by the state budget.

- Time limit for completion of financial statement of a completed PPP project is prescribed in Clause 7 Article 24 of the Circular No. 88/2018/TT-BTC dated September 28, 2018 by the Ministry of Finance.

- Upon the completion of the statement of completed project, the Ministry of Transport shall submit reports thereof to the Ministry of Finance for monitoring and consolidation.

View relevant provisions at Circular No. 120/2018/TT-BTC of the Ministry of Finance of Vietnam, effective from January 23, 2019.

- Thanh Lam -

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