After 3 years of suspension, the National Assembly allowed BT projects from July 1, 2025.

BT (build-transfer) projects will continue to be implemented from July 1, 2025, after being suspended since 2021.

Chairman of the National Assembly's Economic Committee Vu Hong Thanh - Photo: GIA HAN

On the afternoon of November 29, with a majority of votes in favor, the National Assembly passed the Law amending and supplementing a number of articles of the Law on Planning, the Law on Investment, the Law on Investment under the public-private partnership (PPP) model and the Law on Bidding.

Notably, the new law will continue to allow the implementation of BT (build-transfer) projects with payment by land fund and payment by state budget from July 1, 2025.

According to the provisions of the law, a BT contract is a contract signed between a competent authority and an investor or project enterprise (if any) to construct a project or infrastructure system; upon completion, the investor transfers the BT project to the competent authority.

BT contracts are implemented in the following forms: payment by recovered land funds, land funds managed by agencies and organizations to implement counterpart projects; payment by state budget or no payment required.

The Government shall specify this in detail.

In the regulations on payment of BT contracts using land funds, it is stated that land allocation and land lease for implementation of BT works and corresponding projects are cases of land allocation and land lease without auction of land use rights, without bidding to select investors to implement projects using land.

The order and procedures for land allocation and land lease shall be implemented in accordance with the provisions of the law on land. The estimated land price of the land fund for payment of the BT project shall be calculated based on the land price list at the time of project establishment and bidding documents preparation. Payment shall be made according to the mechanism of offsetting the difference between the value of the BT project and the value of the land fund for payment.

Regarding payment by state budget, it will be taken from public investment capital, or from state budget collected after auctioning land fund, public assets and recorded as state budget revenue and expenditure.

The value of a BT project includes the total investment in construction of the project determined according to the provisions of the law on construction and other costs after the construction phase, including interest after the construction phase and reasonable profits of the investor.

Reporting on the explanation, acceptance and revision of this draft law, Chairman of the National Assembly's Economic Committee Vu Hong Thanh said that BT contracts have been piloted in a number of localities with different regulations on fields, project scale and payment methods, but have not been fully and thoroughly summarized and evaluated.

Therefore, there is currently not enough basis to legalize the provisions on the mechanism, order and procedures of BT contracts in the draft law.

To create a legal basis for implementing the BT contract mechanism and absorb delegates' opinions, the draft law only stipulates basic principles on payment mechanisms for investors for 3 forms.

At the same time, supplement the regulation assigning the Government to specify the BT contract mechanism for the above payment methods.

In addition, the law continues to stipulate the Prime Minister's authority in establishing an interdisciplinary appraisal council; stipulates that the State Audit shall conduct an audit of compensation costs and allows the parties to agree and hire an independent auditor to audit these costs.

At the same time, clarify that the environmental impact assessment report or environmental license is an independent document and not part of the feasibility study report. Allow the competent authority to decide on the investment policy to decide on the maximum state capital ratio of 70% for eligible projects.

Supplementing regulations allowing independent projects or PPP component projects to separate compensation costs and resettlement support using public investment capital, applying a maximum state capital ratio of 70% of the total investment if meeting conditions on location or technology transfer.

In addition, the regulation assigns the Provincial People's Committee as the competent authority to unify the responsibilities of localities in paying the reduced revenue according to the investment policy decision...

On the authority to decide on investment policy for BT projects

Ministers, heads of central agencies and other agencies decide on investment policies for projects applying BT contracts paid by state budget sources obtained after auctioning land funds and public assets for land funds and public assets with original book value of less than VND 500 billion under the management of ministries, central agencies and other agencies.

The provincial People's Committee decides on the investment policy for projects using BT contracts paid by the state budget collected after auctioning land funds and public assets for land funds and public assets under the management of the locality.

Source: https://tuoitre.vn/sau-3-nam-dung-quoc-hoi-cho-lam-du-an-bt-tu-ngay-1-7-2025-20241129162122402.htm