Preferences in Selecting Investors for Implementing PPP Projects from April 20, 2020

Preferences in selecting investors for PPP projects - Illustration (source: internet)

Decree 25/2020/ND-CP stipulates that in cases where an investor has an approved feasibility study report, prefeasibility study report (for high-tech application projects), design, cost estimates (for projects applying the BT contract type or projects which are decided by a competent state authority to organize bidding on the basis of design and cost estimates), that investor will enjoy preferences in bidding when evaluating the financial - commercial aspects. Specifically:

- In the case of applying the service price method, an investor not entitled to preferences will have an additional amount equal to 5% of the service price added to their service price for comparison and ranking.

- In the case of applying the state capital contribution method, an investor not entitled to preferences will have an additional amount equal to 5% of the proposed state capital contribution added to their proposed state capital contribution for comparison and ranking.

- In the case of applying the social benefits and state benefits method, an investor entitled to preferences will have an additional amount equal to 5% of the proposed state budget contribution added or deducted from the contract execution time by 5% of the proposed time to compare and rank.

- In the case of projects applying the BT contract type, an investor entitled to preferences will have a value equal to 5% of the bid price after error correction and adjustment, excluding any price reduction (if any), deducted from the bid price after error correction and adjustment, excluding any price reduction (if any), for comparison and ranking.

- In the case of applying the combined method, an investor will receive preferences based on the proportion of the combined method, but the total preference value will not exceed 5%.

More details can be found in Decree 25/2020/ND-CP, effective from April 20, 2020.

Thu Ba

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