Mr. Dang Minh Truong, Chairman of Sun Group, proposed to the Government to continue implementing new investment projects under the build-transfer (BT) model.
This proposal was made by the Chairman of Sun Group at the Government Standing Conference working with large enterprises on solutions to contribute to socio-economic development last weekend.
 |
| Mr. Dang Minh Truong, Chairman of Sun Group, spoke at the Government Standing Committee Conference working with large enterprises on solutions to contribute to socio-economic development. |
“We hope to continue considering the implementation of new investment projects in the form of BT, especially in the field of investment in developing transport infrastructure and connecting infrastructure at tourist destinations and areas. This formula can be applied to aviation and seaports…”, Sun Group Chairman Dang Minh Truong proposed to the Government leaders.
According to Mr. Truong, the Government needs to mobilize maximum private resources for infrastructure investment through the form of public-private partnership (PPP).
Mr. Truong's opinion is a move to support the re-emergence of the BT contract type that the Draft Law amending and supplementing a number of articles of the Law on Planning, the Law on Investment, and the Law on PPP proposes. Specifically, continuing to apply the BT contract type with payment in cash and payment by land fund in the direction of comprehensively innovating the implementation and payment methods for investors.
Thus, if approved, the new BT project will not only be available under a special mechanism, applied in 3 provinces and cities: Hanoi, Ho Chi Minh City and Nghe An.
It should be reiterated that from January 1, 2021 to present, no new BT projects have been implemented, as the Law on Investment under the Public-Private Partnership (PPP) method has stopped applying this investment method. At the time of the PPP Law's effectiveness, many BT projects announced earlier, including projects invested by Sun Group such as the Vo Thi Sau extended road project, the Tu Lien Bridge project and the road from Tu Lien Bridge to the Hanoi - Thai Nguyen expressway... had to stop.
Recently, the Hanoi People's Committee has issued a Decision approving the results of the selection of the architectural design of Tu Lien Bridge, researched by Sun Group Corporation and TYLin Vietnam International Company Limited. Mr. Vu Duy Tuan, Deputy Director of the Hanoi Department of Planning and Investment, said that the implementation of this project with a capital scale of up to 20,000 billion VND was also determined by the City in the form of BT. However, the steps to select investors will probably have to wait because Article 40 on BT type in the Capital Law will take effect on July 1, 2025, later than the general effective date of January 1, 2025.
The reason is that previously, some investment projects in the form of BT did not have appropriate and unnecessary investment objectives; the value of BT works was determined incorrectly; most projects had higher investment rates than projects using public investment capital; the selection of investors was mainly carried out through the form of non-competitive bidding; supervision was neglected, leading to unsatisfactory project quality...
At the recent Conference on Completing the Mechanism for Implementing the New BT Contract Type, Mr. Tran Hao Hung, Director of the Bidding Management Department (Ministry of Planning and Investment) frankly stated that although there are many shortcomings in implementing the BT contract type, it is undeniable that the contributions of BT projects in recent times in contributing to the effective use of land resources. In fact, many localities wish to implement BT projects and many investors are still very interested in this form of investment.
The problem here is how to manage and monitor this form.
Currently, the Draft Law amending and supplementing a number of articles of the Law on Planning, the Law on Investment, and the Law on PPP requires that the total investment amount must be accurately determined to avoid inflating the value of the project; bidding must be organized to select investors; the payment mechanism for investors must be specifically and transparently determined right from the project preparation stage.
In addition, a type of BT contract that does not require payment is also added to apply to infrastructure works and public service provision projects that investors propose to invest in and construct and transfer to the State without requiring payment for construction investment costs.
However, some questions remain.
For example, should we limit the fields and types of projects that can apply the BT mechanism (as stipulated in the Capital Law, Resolution on supplementing and piloting a number of specific mechanisms and policies for the development of Nghe An province)?
How to determine investors' profits to avoid cases of interest on interest, profit on profit; solutions to minimize the risk of late payment leading to late interest...
In particular, questions about which land fund is used for payment, what conditions should be in place, or how to handle the difference in value between the BT project value and the land fund value... are not easy to answer.
These are the barriers to the decision of whether or not to allow the BT form to re-emerge and the government's decision of whether or not to choose the BT form when implementing investment projects.
Source: https://baodautu.vn/tai-sao-chu-tich-sun-group-de-xuat-tiep-tuc-lam-du-an-bt-d225639.html
Comment (0)