Ho Chi Minh City issues land fund payment process, removing obstacles for BT projects

Ho Chi Minh City People's Committee has just issued payment procedures for BT (build-transfer) projects according to the mechanisms and policies of Resolution 98.

The 2.7km Ring Road 2 project in Ho Chi Minh City has been stalled since 2020. Recently, investors have requested the city to pay for the land fund as soon as possible according to the contract to have resources for implementation - Photo: CHAU TUAN

According to the process, the time for land allocation and land lease for payment is based on the completed construction volume of BT projects, which have been accepted by competent state agencies in accordance with the provisions of law and audited.

At the time of carrying out land allocation and land lease procedures, the investor's financial obligations must be calculated. At the same time, the price for calculating land use fees and land rents must be determined at the time of deciding on land allocation and land lease.

The implementation procedure consists of 4 steps.

Step 1 is to establish, appraise and approve the detailed planning at a scale of 1/500 or the master plan of the land for payment. The implementing agency is the district-level People's Committee and relevant functional agencies. The implementation period includes 20 days of appraisal and 15 days of approval.

Step 2 is land allocation and land lease carried out by the Department of Natural Resources and Environment of Ho Chi Minh City within 30 days.

Step 3 is to determine the land price by the Department of Natural Resources and Environment of Ho Chi Minh City. The implementation period is 180 days from the date of issuance of the decision on land allocation and land lease according to the provisions of Clause 4, Article 155 of the 2024 Land Law (the specific land price determination period is not included in the time for carrying out procedures for land allocation, land lease, and issuance of certificates of land use rights and ownership of assets attached to land).

Step 4 is to issue a certificate of land use rights and ownership of assets attached to the land by the Department of Natural Resources and Environment of Ho Chi Minh City. The implementation time is within 3 days from the date the investor is confirmed by the tax authority to have completed financial obligations.

Thus, after more than a year of implementing Resolution 98, Ho Chi Minh City has issued a procedure for land fund payment under BT contracts. This is really good news for many investors and also a way out for projects being implemented under BT form, such as the project of section 3 of Ho Chi Minh City Ring Road 2, 2.7km long through Thu Duc City.

Early payment to investors in BT projects will reduce interest charges.

Speaking to Tuoi Tre Online , a leader of Van Phu Bac Ai Joint Stock Company (the enterprise implementing the project of section 3 of Ho Chi Minh City's Ring Road 2) said that the project started in 2017 but was temporarily suspended in mid-2020 when it reached 43.7% of the progress. To implement the project, the enterprise spent thousands of billions of VND but has not received any payment yet.

"Early payment of land fund according to the contract not only helps reduce the interest rate which is increasing to 15 billion VND/month but also helps the enterprise have resources to restart the project. Currently, the enterprise is also waiting for the project adjustment procedures to be completed to resume construction. It is expected that the enterprise will only need one year to complete this project," said the leader of Van Phu Bac Ai Joint Stock Company.

Source: https://tuoitre.vn/tp-hcm-ban-hanh-quy-trinh-thanh-toan-quy-dat-go-vuong-cho-cac-du-an-bt-20241216161117012.htm