The Government’s newly issued resolution on investment in the public-private partnership model defines five conditions on selecting projects for this type.
Accordingly, the projects must comply with sectoral, regional and socio-economic development plans of localities and regulations on investment sectors.
The projects must also be able to attract and receive commercial capital, technologies and management experience of investors, as well as to provide stable provision of qualified products and services meeting users’ demand.
In addition, the projects must have at least VND20 billion (US$940,000) in total investment capital, except Operations and Maintenance projects and those on developing rural and agricultural infrastructure and services to link production with processing and consuming farm products.
Projects, which have not been in sectoral, regional and socio-economic development plans of localities, must be considered by ministries, agencies and provincial People’s Committees and submitted to authorized levels for approval.
The resolution also defines equity and capital raised by investors to implement the projects in accordance with the signed contracts. The equity is not allowed lower than 15% of the total investment capital.
For projects with the investment over VND1.5 trillion (US$70.5 million), the equity ratio is determined as not lower than 15% for the VND1.5 trillion investment and 10% at least if the investment is over VND1.5 trillion.
The State’s capital in the projects is not included in the total investment to define equity ratio.
Other projects by investors to recover their invested capital in build-transfer projects must follow legal regulations on equity.
Source : chinhphu.vn