From 1st October: Payment of public assets to BT project investors

From today (October 1), Decree 69/2019/ND-CP stipulates the use of public assets to pay investors when implementing construction investment projects in the form of construction contracts. Build - Transfer (BT project) will officially take effect.

Accordingly, public assets to be paid to investors implementing BT projects include: Land fund; land, houses and other properties associated with land (working offices) of state agencies, public non-business units, units of the people's armed forces, Party agencies, socio-political organizations, socio-political-professional organizations, other organizations established in accordance with the law on associations (agencies, organizations, units); infrastructure assets in service of national interests and public interests (infrastructure assets); other types of public property in accordance with the Law on management and use of public property.

Principles of payment must ensure compliance with the provisions of law on management and use of public properties, land, the State budget…

In addition, the use of public assets to pay for investors implementing projects must follow the principle of parity, the project value is equivalent to the value of public assets paid. In particular, the project value is determined according to the bidding results, while the price of public assets is determined according to the market price at the time of payment.

In case of using the land fund for payment, the State may allocate land with collection of land use levies or lease land with one-off rental payment for the entire lease term. In particular, the paid land fund is land which has not been cleared for site clearance but is guaranteed under planning and use plans.

In case, if the land is cleared for payment, the local People's Committee must report to the Prime Minister for consideration and decision before deciding on investment policy. At the same time, the payment of the land fund must ensure the value equivalent to the approved BT project.

If land is allocated with land use levy, the value of the paid land fund is the land use levy determined according to regulations. If the land is leased, the value of the land fund is the one-off rent paid for the entire lease term.

The payment by land fund must comply with the principle of parity, if the value of the land fund is larger than the value of the project, the investor must pay the difference in cash to the State budget. In contrast, if the land value is smaller, the State will pay the difference to investors in cash or land fund at the time of settlement of the completed project.

According to Chau An