Propose amendments and supplements to the Decree on formulation, appraisal and approval of sea reclamation investment projects
According to Mr. Le Hoang Chau, Chairman of the Ho Chi Minh City Real Estate Association (HoREA), regulations on sea reclamation activities bring many benefits so are very necessary. The Ministry of Natural Resources and Environment needs to soon complete the decree for promulgation, contributing to solving the current congestion of sea reclamation projects.
HoREA Chairman very much hopes that the Government will issue this Decree to detail the implementation of Article 190 of the Land Law 2024, which will take effect from April 1.
Commenting on the draft Decree on sea reclamation activities" sent to the Prime Minister and the Ministry of Natural Resources and Environment, HoREA Chairman said that it is expected that the Government will issue this Decree to detail the implementation of Article 190 Land Law 2024 takes effect from April 1.
HoREA basically agrees with the Draft Decree on sea reclamation activities (Draft Decree) and comments on some concerns in the Draft Decree.
Specifically, Mr. Chau proposed to amend and supplement Clause 2, Article 3 of the Draft Decree, for 3 reasons.
Firstly, sea reclamation investment projects, sea reclamation items in investment projects in localities may include coastal alluvial areas, or coastal protective forest land, or coastal aquaculture land. . Changing land use purposes for these types of land must be carried out in accordance with the provisions of land law and relevant laws.
Second, the sea reclamation investment project and the sea reclamation item in the planned investment project not only aim to create a land fund but can also "create a specialized sea surface land fund" to carry out investment projects. investment according to routes such as: Ports from the mainland to deep sea areas, or coastal wind power projects, offshore wind power projects, or oil and gas pipelines or electric cables and fiber optic cables.
Third, sea reclamation investment projects, sea reclamation items in investment projects in a certain sea area, or coastal alluvial area, or coastal protective forest land, or coastal aquaculture land The sea must be implemented according to planning, and must comply with relevant laws.
In addition, HoREA Chairman also proposed to amend and supplement Article 5 of the draft Decree on establishing, appraising and approving sea reclamation investment projects or sea reclamation items of investment projects.
This not only complies with the provisions of construction law but also must comply with relevant laws such as investment law, housing law, real estate business law, maritime law, and law. forestry,…
The reason given by HoREA is that the sea reclamation project is a public investment project "to create a land fund, a land fund with sea surface specifically used for socio-economic development purposes" after "complete acceptance". into sea reclamation" then conduct bidding to select investors to implement component projects or construction items within the scope of the sea reclamation project.
A sea reclamation project is an investment project "with state capital sources other than public investment and projects using other capital" (private capital), according to the provisions of the PPP Law 2020, Investment Law 2020, "investor strategic" or "investor selected according to the provisions of the PPP Law 2020, Bidding Law 2023" will both carry out sea reclamation activities and carry out component projects or construction items within the scope of the project. sea reclamation project.
In this case, the investor must not only comply "with the provisions of construction law", but also must comply with "relevant laws" such as investment law, housing law, business law. real estate, maritime law, forestry law, agricultural law, fisheries law, environmental protection law.
How to determine land use fees and land rent for a "sea reclamation project"?
HoREA proposes to amend and supplement Article 6 of the "draft Decree" on "land allocation, land lease, and sea area allocation for sea reclamation" in the direction of "copying" the content of Clauses 3 and 5, Article 68 Decree 43/2014/ND-CP and Clause 21, Article 1 of Decree 148/2020/ND-CP, instead of "referring" to Clauses 3 and 5, Article 68 of Decree 43/2014/ND-CP and Clause 21 Article 1 Decree 148/2020/ND-CP.
According to HoREA analysis, Decree 43/2014/ND-CP and Decree 148/2020/ND-CP will expire from the date of Land Law 2024 and the Decree detailing the implementation of a number of articles of the Law. The land will take effect from January 01, 01 or may be considered and allowed by the National Assembly to take effect from July 2025, 01.
Officials, civil servants, and state employees only need to rely on this Decree to implement without having to look up previous related Decrees.
It is recommended to add the case of "not bidding to select investors to implement projects using land" or the case of land allocation or land lease to "strategic investors, PPP project investors" to the point c Clause 2, Article 6 of the "draft Decree" due to Article 124 of the Land Law 2024 stipulates "cases of land allocation or land lease without auctioning land use rights, without bidding to select investors to implement the project." projects using land" and the 2020 PPP Law stipulates investor selection through bidding for PPP projects.
Regarding the determination of land use fees and land rents for sea reclamation projects, the Association agrees to stipulate that the determination of specific land prices to calculate land use fees and land rents shall be carried out in accordance with the provisions of law. Land Law, in Clause 1, Article 8 of the Draft Decree.
HoREA endorses the regulation: "In case the residual method is applied to determine specific land prices, the estimate of total development costs must include sea reclamation costs approved by competent state agencies." .
In addition, HoREA also requested the Prime Minister and the Ministry of Natural Resources and Environment to carefully consider the opinions of experts who proposed adding loan interest costs in estimating total development costs when applying the surplus method. residual.
Because interest costs are a very large actual expense, because investors all need medium and long-term credit loans. In some cases, investors have to borrow at high interest rates, causing loan costs to account for more than 20% of the total project investment.
