Vietnam - New Circular Implementing Decree 63 On Public Private Partnerships.
Legal News & Analysis - Asia Pacific - Vietnam - Energy & Project Finance
1 May, 2019
New Circular 09/2018/TT-BKHDT implementing Decree 63 on Public Private Partnerships
On 28 December 2018, the Ministry of Planning and Investment (MPI) issued Circular No. 09/2018/TT-BKHDT (Circular 09) providing guidance on the implementation of a number of articles of Decree No. 63/2018/ND-CP dated 4 May 2018 on investment in a public-private partnership (PPP) form (Decree 63).
Circular 09 provides guidance for the preparation and assessment of pre-feasibility study reports and feasibility study reports of PPP projects, the contents of PPP project contracts, and other issues stipulated by Decree 63.
Accordingly, Circular 09 provides five appendixes for the following topics:
(i) Appendix I: Guidance on formulating the pre-feasibility study report of PPP projects;
(ii) Appendix II: Guidance on appraisal of the pre-feasibility study reports of PPP projects;
(iii) Appendix III: Guidance on formulating the feasibility study report of PPP projects;
(iv) Appendix IV: Guidance on appraisal of the feasibility study reports of PPP projects;
(v) Appendix V(a): Basic content of PPP projects contracts (excluding the projects applying the Build-Transfer (BT) model); and
(vi) Appendix V(b): Basic content of BT contracts.
In the event that there is more than one investor submitting proposals for a project, the relevant authorities shall select the proposal that is assessed to be the most feasible and efficient. The assessment shall be undertaken by the Government authorities based on the following criteria:
(i) The project must (a) be consistent with the developmental master plan of the relevant branch or sector; and with the socioeconomic developmental master plan and plan as approved by the relevant authorities; (b) be consistent with the investment sectors; (c) not overlap with other projects for which an investment policy decision or investment decision was made; (d) be capable of capital recovery for the investor; (e) conform with the capability of balancing the State portion for participating in PPP projects; and (f) have an environmental impact assessment report as prescribed by the law on environmental protection;
(ii) Necessity for the investment;
(iii) Technical feasibility, including land use plans;
(iv) Socio-economic efficiency;
(v) Financial feasibility; and
(vi) Capacity and experience of the investors in undertaking preparation of their pre-feasibility study report and feasibility study report.
Circular 09 came into effect as from 15 February 2019 and replaced Circular No. 02/2016/TT-BKHDT dated 1 March 2016 of the MPI providing guidance on the same matters.
For further information, please contact:
Mark Fraser, CEO/ Managing Partner, Frasers Law Company