Decree 69 a legal framework for transparent implementation of BT projects

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The conference. Photo: H.Q

At the conference, Mr. La Van Thinh said in the context that the State lacks resources, it needs the support of the private sector in infrastructure investment.The BT project format is the first format that allows the private sector to build and transfer to the State agency and the State will operate and manage the project.

This is aneffective investment format. In order to manage the project transparently, localities must annually publicize the list of BT constructions to call for investors in these projects. This content has been included in the Law on Management and use of public assets.

On August 15, the Government issued Decree No. 69/2019/ND-CP stipulating the use of public assets for payment to investors implementing investment projects for construction of works in the format of Build-Transfer Contract (BT project).

“The spirit of the Decree is that everything is normal, but it must meet the input requirements. The land allocated to investors may be land that has not yet been cleared, but must be in the plan and in the approved land use plan,” the Director of the Department of Public Administration said.

At the conference, the Division of Natural Resources and Land under the Public Asset Management Department presented key issuesstipulated in Decree 69 to representatives from ministries, sectors and localities. These focused on six principles of BT project payment by public assets; time of payment; loan interest in the financial plan of the BT contract; and the transfer of public assets for payment to investors.

Accordingly, the principle of equivalence of exchangeis determined, the value of public assets is determined according to the market price and provisions of the law at the time of payment; BT project value is determined according to the bidding results. The time of payment is the time when the provincial People's Committee issues a decision on land allocation or land lease to investors for payment by land fund or working office. The transfer of public assets for payment to investors shall be made after the BT project is completed or implemented concurrently with the BT construction work completion according to the schedule approved by the State agencies according to the regulations.

At the conference, representatives of some localities asked a number of questionsrelated to the transitional provisions of the Decree.

Answering this, the representative of the Ministry of Finance said according to the provisions of Decree No. 69, BT contracts are paid by land funds orthe office for investors to implement BT projects and signed before January 1, 2018 but have not completed the payment to investors, the payments will be implementedaccording to the content of the signed BT contracts.

The promulgation of Decree No. 69 will be a legal framework for transparent implementation of BT projects. For unspecific terms, the parties will negotiate and review to comply with the provisions of law.