5 conditions for selecting projects in the form of public-private partnerships According to the Decree on investment in public-private partnerships recently issued by the Government [...]
According to the Decree on investment in public-private partnerships recently issued by the Government, projects selected to be implemented in the form of public-private partnerships must meet the following requirements: fully meet all 5 conditions.
5 conditions include:
1- In accordance with planning, industry and regional development plans and local socio-economic development plans.
2- Suitable for investment fields according to regulations.
3- Ability to attract and receive commercial capital, technology, and management experience from investors.
4- Ability to provide continuous, stable, quality products and services that meet the needs of users.
5- Have a total investment capital of 20 billion VND or more, excluding investment projects under O&M contracts and agricultural and rural infrastructure projects and development services associated with production associated with processing and consuming agricultural products.
Projects that are not included in the planning, development plans of sectors, regions, or local economic and social development plans must be considered and supplemented by the Ministries, branches, and Provincial People's Committees according to their authority or submitted to competent authorities for approval.
Projects that meet the above conditions and have the ability to recover capital from business activities are given priority.
Equity capital and mobilized capital of investors
The Decree also specifically regulates equity capital and mobilized capital of investors. Accordingly, investors are responsible for contributing equity and mobilizing other capital sources to implement the project as agreed in the project contract.
The investor's equity ratio must not be lower than 15% of total investment capital. For projects with total investment capital of over 1,500 billion VND, the equity ratio is determined according to the principle of partial progression. Specifically, for capital up to 1,500 billion VND, the equity ratio must not be lower than 15% of this capital; For capital over 1,500 billion VND, the equity ratio must not be lower than 10% of this capital.
State investment capital participating in project implementation is not included in the total investment capital to determine the equity ratio.
Other projects implemented by investors to recover capital invested in BT projects must meet equity requirements (if any) according to the provisions of law.
| Investment in the form of public-private partnership (PPP) is a form of investment made on the basis of a contract between a competent state agency and an investor or project enterprise to implement, manage and operate infrastructure projects and provide public services |
Procedures
