The Prime Minister assigned the Ministry of Finance to preside over the drafting of a Decree on BT contract implementation to implement Resolution 137 of the National Assembly on Nghe An.
The Ministry of Finance shall preside over the drafting of a Decree regulating loan interest after construction period, reasonable profits, payment methods, and final settlement of investment projects applying BT contracts in Nghe An province, to be promulgated before October 15, 2024.
Deputy Prime Minister Le Thanh Long has just signed on behalf of the Prime Minister to issue Decision No. 717/QD/TTg promulgating the list and assigning the agency in charge of drafting documents detailing the implementation of laws and resolutions passed by the 15th National Assembly at the 7th Session.
In particular, the Ministry of Finance is assigned to preside over and coordinate with the Ministry of Planning and Investment, the Ministry of Justice, the Government Office and relevant agencies to draft a Decree regulating loan interest after construction period, reasonable profits, payment methods, and final settlement of investment projects applying BT (build-transfer) contracts in Nghe An province for promulgation before October 15, 2024.
On June 26, 2024, at the 7th Session, the National Assembly passed Resolution 137/2024/QH15 on piloting a number of specific mechanisms and policies for the development of Nghe An province.
On July 10, Secretary General of the National Assembly and Head of the National Assembly Office Bui Van Cuong issued Official Dispatch No. 4060/TTKQH-TT on the promulgation of the Resolution of the 15th National Assembly.
In particular, the National Assembly resolved to pilot a number of specific mechanisms and policies for the development of Nghe An province on financial management, state budget; investment management; urban, natural resources and environment management; and organization of local government apparatus.
At the same time, the Government, within the scope of its tasks and powers, shall promptly issue legal documents within its authority and organize the implementation of this Resolution; review 3 years of implementing the Resolution and report to the National Assembly at the end of 2027 session; review 5 years of implementing the Resolution and report to the National Assembly at the end of 2029 session; direct relevant agencies to coordinate with Nghe An province to reform administrative procedures; study and shorten the time to handle issues that have not been decentralized or delegated to the province; promptly issue mechanisms and policies within its authority to amend and supplement appropriate regulations to resolve shortcomings arising in the management and development practices of Nghe An province.
The development and promulgation of the Decree regulating loan interest after construction period, reasonable profit, payment method, and settlement of investment project implementation applying BT (build - transfer) contract type in Nghe An province aims to specify point e, clause 4, Article 4 of Resolution 137/2024/QH15, specifically "The Government regulates loan interest after construction period, reasonable profit, payment method, and settlement of investment project implementation applying BT contract type".
Clause 4, Article 4 of Resolution 137/2024/QH15 allows Nghe An province to implement the contract form under the build-transfer method (BT contract) as follows:
a) BT contract is a contract signed between a competent authority and an investor to construct an infrastructure project; after completing the project, the investor transfers the project to the competent authority and is paid from state budget sources, proceeds from public asset auctions, and land use rights auctions;
b) Nghe An province is allowed to implement BT contracts for investment projects in the fields of transportation, urban technical infrastructure, lighting systems, decorative electricity; parking lots; drainage and wastewater treatment; environmental pollution treatment in the province. Payment to investors as prescribed in Point a of this Clause must ensure publicity, transparency, socio-economic efficiency, quality of works and projects, and not cause loss of state capital and assets;
c) The authority, order and procedures for selecting investors to implement BT projects are implemented as prescribed for PPP projects according to the provisions of the law on investment under the public-private partnership method. The selection of investors for BT projects is carried out after the construction design is implemented after the basic design is approved. The People's Committee of Nghe An province stipulates the criteria for evaluating the capacity, experience, techniques and finances of investors implementing BT projects;
d) The authority, order, procedures for project preparation, appraisal, approval, management, investment costs, construction quality, and projects applying BT contracts are implemented as prescribed for public investment projects according to the provisions of the law on public investment and the law on construction. The project shall only be decided on investment policy when the capital source and the ability to balance capital are determined. The total investment of a project applying BT contracts is determined as for a project using public investment capital according to the provisions of the law on construction; the interest expense after the construction period and reasonable profit are included in the total investment of the project;
d) The People's Council of Nghe An province decides on the use of provincial budget capital, arranges capital for investment preparation, annual budget estimates and arranges public investment capital in the province's medium-term and annual public investment plans; based on the value and progress specified in the BT contract, decides on the use of revenue from public asset auctions and land use rights auctions to pay investors after the independently operated project or project item is completed, accepted and audited; supervises the implementation to ensure compliance with legal provisions;
e) The Government shall prescribe the interest rate after the construction period, reasonable profit, payment method, and settlement of investment project implementation applying the BT contract type.