All Costs for Selecting Investors to Implement PPP Projects

Illustration (source: internet)

Decree 25/2020/ND-CP stipulates all costs in selecting investors to implement investment projects in the form of public-private partnership (PPP); investment projects that use land to build commercial housing; commercial, service works; multifunctional, mixed-use complexes for business purposes; etc. (Clause 1 Article 1).

To be specific: costs in selecting investors are regulated by this Decree as follows:

1. For domestic bidding, the sale price (including tax) of a set of bidding documents or requirements documents shall not exceed 20,000,000 (twenty million) VND; prequalification invitation documents shall not exceed 5,000,000 (five million) VND. For international bidding, the sale price (including tax) of a set of bidding documents or requirements documents shall not exceed 30,000,000 (thirty million) VND; prequalification invitation documents shall not exceed 10,000,000 (ten million) VND.

2. Costs for preparing and appraising prequalification invitation documents; evaluating prequalification applications; appraising prequalification results:

- The cost of preparing prequalification invitation documents is calculated at 0.02% of the total investment but not less than 10,000,000 (ten million) VND and not more than 100,000,000 (one hundred million) VND;

- The cost of appraising prequalification invitation documents is calculated at 0.01% of the total investment but not less than 10,000,000 (ten million) VND and not more than 50,000,000 (fifty million) VND;

- The cost of evaluating prequalification applications is calculated at 0.02% of the total investment but not less than 10,000,000 (ten million) VND and not more than 100,000,000 (one hundred million) VND;

- The cost of appraising prequalification results is calculated at 0.01% of the total investment but not less than 10,000,000 (ten million) VND and not more than 50,000,000 (fifty million) VND.

3. Costs for preparing and appraising bidding documents or requirements documents; evaluating bid applications, proposal applications; appraising investor selection results:

- The cost of preparing bidding documents or requirements documents is calculated at 0.05% of the total investment but not less than 10,000,000 (ten million) VND and not more than 200,000,000 (two hundred million) VND;

- The cost of appraising each aspect of bidding documents, requirements documents, and investor selection results is calculated at 0.02% of the total investment but not less than 10,000,000 (ten million) VND and not more than 100,000,000 (one hundred million) VND;

- The cost of evaluating bid applications or proposal applications is calculated at 0.03% of the total investment but not less than 10,000,000 (ten million) VND and not more than 200,000,000 (two hundred million) VND.

4. For projects with similar content under the same competent state authority and the same bidding organizer, if the projects have to organize the investor selection again, costs for preparing and appraising prequalification invitation documents; preparing and appraising bidding documents or requirements documents shall be calculated at a maximum of 50% of the expenses incurred for the cost elements stipulated in Clauses 2 and 3 of this Article. In the case of organizing the investor selection again, this cost must be calculated and added to the investment preparation cost.

5. The costs stipulated in Clauses 2, 3, and 4 of this Article apply when the competent state authority or the bidding organizer directly performs the tasks. In the case of hiring bidding consultants to carry out the tasks mentioned in Clauses 2, 3, and 4 of this Article, cost determination shall be based on the content and scope of work, execution time, consultant capability, experience, regulated salary norms, and other factors. If there are no regulations on consultant salary norms, the determination of consultant salary costs shall be based on the statistical experience of incurred costs for consultants at similar projects implemented within a specified period or within the total investment.

6. The cost for the Advisory Council to resolve investor complaints about investor selection results is 0.02% of the total investment of the complaining investor but not less than 20,000,000 (twenty million) VND and not more than 200,000,000 (two hundred million) VND.

See the full regulation at Decree 25/2020/ND-CP, effective from April 20, 2020.

Tuesday

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