On 15/08/2019, the Government issued Decree 69/2019/ND-CP regulating the use of public assets to pay investors when implementing construction investment projects in the form of build – transfer contract (BT contract). The Decree takes effect from October 1, 2019.
Some notable contents in the decree:
Types of public assets allowed to be used to pay Investors include (Clause 2 Article 1):
Land fund;
Land, houses and other assets associated with land of state agencies, public non-business units, units of the people’s armed forces, the Communist Party of Vietnam, political and social organizations, socio-political-professional organizations, social organizations, socio-professional organizations and other organizations established under the law on associations (agencies, organizations and units);
Infrastructure assets in service of national interests and public public interests;
Other types of public assets according to the Law on Management and Use of Public Assets.
The valuation of each type of public asset
Land fund: The value of the paid land fund is the land use levy or land rent paid in lump sum for the whole lease term (Clause 1, Article 6);
Land, houses and other assets attached to land of agencies, organizations and units: Value of land use rights and property values ​​on land (Clause 1, Article 9);
Infrastructure assets: Value of exploitation rights of infrastructure assets (Clause 1 Article 11);
Other types of public assets: comply with regulations on management and use of public assets and other relevant regulations (Article 13).
For BT contracts signed before the effective date of this Decree, payment to investors shall continue to be performed according to the contents of the BT Contract signed or applied by law. related to implementation (Article 17).
The promulgation of Decree 69/2019 / ND-CP has created an important legal basis for the implementation of Build – Transfer contracts, which is a premise for foreign investors to participate in national construction investment activities as well as promoting the development of the economy.