Decree 25/2020 / ND-CP detailing a number of articles of the Bidding Law regarding investor selection issued by the Government on February 28, 2020 takes effect from April 20, 2020.
This Decree provides for preferences in selecting investors to implement PPP projects. Accordingly, organizations and individuals participating in or related to the activities of selecting investors to implement investment projects will be entitled to preferences in selecting investors to implement PPP projects. Subjects of preferential application include: Investors who have feasibility study reports, pre-feasibility study reports (for high-tech application projects), designs and cost estimates (for projects applying Using the type of BT contract or a project approved by a competent state agency to organize bidding on the basis of the design and cost estimate), such investor shall be given preferential treatment in bidding upon evaluation of finance – trade.
When implementing a PPP investment project in Vietnam, these investors will receive the following incentives:
Firstly, in case of applying the service price method, investors not subject to incentives must add an amount equal to 5% of the service price to the service price of that investor to compare and rank.
Secondly, in the case of the State’s method of capital contribution, investors not eligible for incentives must add an amount equal to 5% of the State’s proposed capital contribution to the State’s contributed capital amount. That investment proposes to compare, rank.
Thirdly, in case of application of social benefits, state benefits, investors entitled to the incentive are entitled to an additional 5% of the proposed contribution to the state budget or a period of time deduction. The time is equal to 5% of the time for contract performance that the investor proposes to compare and rank.
Fourth, in case the project applies BT contracts, the investors entitled to incentives are entitled to a deduction of a value equal to 5% of the bid price after error correction, deviation adjustment and discount deduction (if have) in the bid price after correction of errors, adjustment of deviations, deduction of discounts (if any) that the investor proposes to compare and rank.
Fifth, in case of application of the combined method, investors are entitled to incentives according to the proportion of the combined method but the total preferential value does not exceed 5%.
It can be seen that this Decree No. 25/2020 / ND-CP has specific provisions for each case of preferential treatment when investing. Thereby helping investors assess the capacity, investment potential to implement the project, contribute to the selection of investors in accordance with national standards and create investment promotion for investors.