Proposing a mechanism for sharing revenue increases and decreases for BOT projects

Regarding the amendment and supplementation of a number of articles of the Law on Investment under the public-private partnership model, an important new point is the mechanism for sharing increased and decreased revenue to minimize risks for investors and encourage the attraction of social capital.

Chairman of the Economic and Financial Committee Phan Van Mai reported at the meeting.

On the afternoon of June 6, the National Assembly Standing Committee (NASC) gave opinions on the reception, explanation, and revision of the draft Law amending and supplementing a number of articles of the Law on Bidding; Law on Investment under the public-private partnership model; Law on Customs; Law on Export Tax and Import Tax; Law on Investment; Law on Public Investment; Law on Management and Use of Public Assets (Law amending and supplementing a number of articles of 7 laws).

At the meeting, Chairman of the Economic and Financial Committee Phan Van Mai said that regarding the Law on Bidding, the draft has absorbed the opinions of National Assembly deputies, stipulating the empowerment of state - owned enterprises to decide on procurement and bidding activities without using state capital (state budget).

Similarly, public service units that self-insure their regular expenditures are also allowed to decide on procurement and bidding activities that do not use state budget capital, with the goal of increasing the units' initiative and flexibility.

Also on bidding, the draft stipulates the decentralization of authority to select contractors in accordance with the scale and nature of the bidding package; allowing the application of many forms of contractor selection such as open bidding, restricted bidding, designated bidding, direct procurement, and self-implementation.

Deputy Minister of Finance Tran Quoc Phuong and delegates attending the meeting

Regarding the amendment and supplementation of a number of articles of the Law on Investment under the Public-Private Partnership (PPP Law), an important new point is the mechanism for sharing increased and decreased revenue to minimize risks for investors and encourage the attraction of social capital. The draft proposes a mechanism for sharing increased/decreased revenue for BOT projects.

Specifically, if revenue exceeds 125% of the financial plan, 75-90% of the excess will be paid to the state budget; if revenue decreases below 90%, the State can supplement 110-125% of the decrease to ensure the feasibility of the project.

In handling the problem of reduced revenue of road BOT projects signed before January 1, 2021, the draft also addresses issues related to reduced revenue for BOT projects signed before the PPP Law took effect, in order to ensure the rights and legitimate interests of the parties.

With the Investment Law, the draft incorporates comments and proposes that the Prime Minister approve the investment policy for 7 project groups, instead of having to submit them to the National Assembly as before. This aims to speed up the process of handling administrative procedures and shorten the time for investment preparation.

In addition, the Government aims to cut at least 30% of unnecessary business conditions and reduce administrative procedure compliance costs by 30% by 2025. The draft also supplements and clarifies transitional regulations related to the Investment Law and the Housing Law to handle practical problems and facilitate investment projects.

MR. PHUONG

Source: https://www.sggp.org.vn/de-xuat-co-che-chia-se-phan-tang-giam-doanh-thu-doi-voi-du-an-bot-post798454.html