Ho Chi Minh City issues procedures for land fund payments, removing obstacles for BT projects.

The Ho Chi Minh City People's Committee has just issued a payment procedure for BT (build-transfer) projects according to the mechanisms and policies of Resolution 98.

The 2.7km Ring Road 2 project in Ho Chi Minh City has been stalled since 2020. Recently, the investor has requested that the city expedite the payment for the land as per the contract to provide the resources for implementation. - Photo: CHAU TUAN

According to the procedure, the timing of land allocation and land lease for payment is based on the volume of construction work under the BT project that has been completed according to schedule, inspected and approved by the competent state agency in accordance with the law, and audited.

At the time of land allocation or lease procedures, the investor's financial obligations must be calculated. Simultaneously, the price used to calculate land use fees and land lease fees is determined at the time the decision to allocate or lease the land is made.

The process consists of four steps.

Step 1 involves preparing, appraising, and approving the detailed planning at a scale of 1/500 or the overall site plan for the land to be compensated. The implementing agency is the District People's Committee and relevant functional agencies. The implementation time includes 20 days for appraisal and 15 days for approval.

Step 2 involves land allocation and leasing, carried out by the Ho Chi Minh City Department of Natural Resources and Environment within 30 days.

Step 3 involves determining land prices, carried out by the Ho Chi Minh City Department of Natural Resources and Environment. The implementation period is 180 days from the date of issuance of the land allocation or lease decision, as stipulated in Clause 4, Article 155 of the 2024 Land Law (the time for determining specific land prices is not included in the time for carrying out the procedures for land allocation, land lease, and issuance of land use right certificates and ownership certificates for assets attached to the land).

Step 4 involves issuing the land use right certificate and the certificate of ownership of assets attached to the land, which is carried out by the Ho Chi Minh City Department of Natural Resources and Environment. This process takes within 3 days from the date the investor receives confirmation from the tax authority that they have fulfilled their financial obligations.

Thus, after more than a year of implementing Resolution 98, Ho Chi Minh City has issued a procedure for paying for land funds under BT contracts. This is truly good news for many investors and also a way out for projects currently being implemented under the BT model, such as the 2.7km section 3 of the Ho Chi Minh City Ring Road 2 passing through Thu Duc City.

Early payment to investors undertaking BT projects will reduce interest payments.

Speaking to Tuoi Tre Online , a leader of Van Phu Bac Ai Joint Stock Company (the enterprise implementing section 3 of the Ho Chi Minh City Ring Road 2 project) said that construction started in 2017 but was temporarily halted in mid-2020 when it reached 43.7% completion. To implement the project, the company spent thousands of billions of VND but has not yet received any payment.

"Early payment for the land as per the contract not only helps reduce rising interest payments of 15 billion VND per month but also provides the company with the resources to restart the project. Currently, the company is also waiting for the project adjustment procedures to be completed before resuming construction. The company expects to complete this project within one year," said a leader of Van Phu Bac Ai Joint Stock Company.

Source: https://tuoitre.vn/tp-hcm-ban-hanh-quy-trinh-thanh-toan-quy-dat-go-vuong-cho-cac-du-an-bt-20241216161117012.htm