Amending a number of Decrees detailing investment under the PPP method
Deputy Prime Minister Tran Hong Ha has just given instructions on the drafting of a Decree amending and supplementing a number of Decrees detailing and guiding the implementation of the Law on Investment under the public-private partnership model.
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| Quang Tri Airport - a project invested under the PPP method. |
Official dispatch No. 6549/VPCP-CN dated September 13, 2024 of the Government Office stated: Considering the proposal of the Ministry of Planning and Investment on the development of a Law amending and supplementing a number of articles of the Law on Investment under the public-private partnership (PPP) method and the Ministry of Finance on the proposal to amend and supplement a number of articles of the Decree detailing and guiding the implementation of the Law on Investment under the PPP method, Deputy Prime Minister Tran Hong Ha agreed with the proposal of the Ministry of Planning and Investment on the implementation of the development of Decrees amending Decree No. 35/2021/ND-CP dated March 29, 2021 of the Government and Decree No. 28/2021/ND-CP dated March 26, 2021 of the Government at the same time as the process of developing and completing the contents of the Law amending and supplementing a number of articles of the Law on Planning, the Law on Investment, the Law on Investment under the PPP method and the Law on Bidding.
The Ministry of Finance closely coordinates with the Ministry of Planning and Investment in the process of developing and perfecting the contents of the Law amending and supplementing a number of articles of the Law on Planning, the Law on Investment, the Law on Investment under the PPP method and the Law on Bidding to ensure the resolution of difficulties and problems related to BT contracts as reported by the Ministry of Finance; continue to review and study the amendment of Decree No. 69/2019/ND-CP dated August 15, 2019 of the Government to resolve difficulties and problems related to BT contracts under the authority of the Government at the same time as the process of developing and perfecting the Law amending and supplementing a number of articles of the Law on Planning, the Law on Investment, the Law on Investment under the PPP method and the Law on Bidding.
The Law on Investment under the PPP method was passed by the National Assembly on June 19, 2020, effective from January 1, 2021. To ensure the implementation of this Law, the Government issued Decree No. 35/2021/ND-CP dated March 29, 2021 detailing and guiding the implementation of the Law on Investment under the PPP method and Decree No. 28/2021/ND-CP dated March 26, 2021 stipulating the financial management mechanism of PPP projects.
In addition, before the Law on Investment under the PPP method came into effect, the Government issued Decree No. 69/2019/ND-CP dated August 15, 2019 regulating the use of public assets to pay investors when implementing construction investment projects under the form of Build-Transfer contracts (BT contracts).
According to the Ministry of Planning and Investment, since the PPP Law and the Decrees detailing this Law took effect until the end of 2022, there have been 24 new PPP projects implemented under the provisions of the Law on Investment under the PPP method (10 projects have been approved, 14 projects are preparing for investment) and 295 PPP projects (of which 160 projects apply the BT contract type) are being implemented under the transitional provisions of this Law. Most of the new PPP projects implemented under the provisions of the Law on Investment under the PPP method are key, large-scale projects of the country.
However, the implementation of the Decrees on investment under the PPP method still has some limitations and difficulties. Specifically:
Decree No. 35/2021/ND-CP details and guides the implementation of the Law on Investment under the PPP method: (i) The minimum total investment scale required for PPP projects is larger than the reality and the local investment attraction needs, leading to difficulties in attracting small-scale projects with potential and attractiveness to investors through PPP; (ii) The regulation that the contracting agency only pays a maximum of 50% of the value of completed volume for sub-projects using public investment capital in PPP projects causes difficulties for investors in arranging capital to implement the entire PPP project; (iii) Transitional regulations and implementation provisions for PPP projects in general and BT projects in particular need to be supplemented to remove obstacles in early contract termination, payment, settlement, adjustment of feasibility study reports and adjustment of construction designs, etc.
Decree No. 28/2021/ND-CP stipulates the financial management mechanism of PPP projects: (i) The criteria for analyzing and evaluating the financial plan of the project in each field are not complete, leading to confusion in assessing financial feasibility; (ii) Regulations on the proportion of state capital participating in PPP projects are not consistent and consistent with the provisions of the Law on Investment under the PPP method; (iii) The source of capital for payment for PPP projects of the type of construction - transfer - service lease contract (BTL contract), construction - service lease - transfer contract (BLT contract) has not been specifically regulated in the case where a public service unit that self-insures regular expenses is the agency signing the contract...
Decree No. 69/2019/ND-CP regulates the use of public assets to pay investors when implementing BT projects: (i) There are no regulations on the conditions for competent authorities to decide to allow the use of cleared land or state agency headquarters assigned to investors to implement BT projects; (ii) There is a lack of regulations on handling the portion of funds that investors have advanced to carry out site clearance work...
Therefore, it is necessary to consider amending and supplementing a number of Decrees detailing the Law on Investment under the PPP method, ensuring legal and practical basis as well as direction from the Government and Government leaders.
Source: https://baodautu.vn/sua-doi-mot-so-nghi-dinh-quy-dinh-chi-tiet-ve-dau-tu-theo-phuong-thuc-ppp-d224906.html
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