Circular No. 75/2017/TT-BTC dated July 21, 2017 of the Ministry of Finance on amending the Circular No. 55/2016/TT-BTC providing contents of financial management of investment projects in the form of public-private partnership and costs of investor selection

THE MINISTRY OF FINANCE

Circular No. 75/2017/TT-BTC datedJuly 21, 2017 of the Ministry of Finance on amending the CircularNo. 55/2016/TT-BTC providing contents of financial management of investment projects in the form of public-private partnership and costs of investor selection

Pursuant to the Law on Investment dated December 09, 2013;

Pursuant to the Law on Public Investment dated June 18, 2014;

Pursuant to the Law on Construction dated June 18, 2014;

Pursuant to the Law on Investment dated November 26, 2014;

Pursuant to the Law on State Budget dated June 25, 2015;

Pursuant to the Government’s Decree No. 163/2016/ND-CP dated December 21, 2016 elaborating the implementation of the Law on State Budget No.83/2015/QH13;

Pursuant to the Government’s Decree No. 15/2015/ND-CP dated February 14, 2015 on investment in the form of Public-Private Partnerships;

Pursuant to the Government’s Decree No. 30/2015/ND-CP dated March 17, 2015 regarding guidelines for some articles on investor selection of the Law on Bidding;

Pursuant to the Government’s Decree No. 32/2015/ND-CP dated March 25, 2015 on construction costs management;

Pursuant to the Government’s Decree No. 59/2015/ND-CP dated June 18, 2015 on construction project management;

Pursuant to the Government’s Decree No. 77/2015/ND-CP dated September 10, 2015 on annual and medium-term investment plans;

Pursuant to the Government’s Decree No. 42/2017/ND-CP dated April 05, 2017 on amendments to the Government’s Decree No. 59/2015/ND-CP dated June 18, 2015 on construction project management;

Pursuant to the Government’s Decree No. 215/2013/ND-CP dated December 23, 2013 defining Functions, Tasks, Powers and Organizational Structure of Ministry of Finance;

At the request of Director of the Investment Department;

Minister of Finance promulgates this Circular to introduce the amendments to Circular No. 55/2016/TT-BTC dated March 23, 2016 by Ministry of Finance providing for certain contents of financial management of investment projects in the form of public-private partnership and costs of investor selection (hereinafter referred to as the Circular No. 55/2016/TT-BTC).

Article 1. To amend the Clause 3, Clause 4 Article 17 of the Circular No. 55/2016/TT-BTC

“3. Interest rates on loan capital shall be specific as follows:

a) Bidding for selecting the investor: The loan capital interest rate is determined according to the bid package of the selected investor.

b) If the investor is appointed without bidding, the loan capital interest rate shall be determined via negotiation or agreement between the competent State agency and the appointed investor. The interest rate referred for carrying out the negotiation or agreement must abide by the following principles:

- The interest rate shall not exceed 1.5 times the simple average of bid-winning interest rates on government bonds whose term is corresponding to the duration of PPP project contract (Project contract) within 10 bidding sessions preceding the time of contract negotiation. The bid-winning interest rates on government bonds are published on the websites of the State Treasuries or the Hanoi Stock Exchange.

- In case the number of bidding sessions for issue of government bonds whose term is corresponding to the duration of PPP project within 06 months preceding the time of contract negotiation is less than 10, the interest rate shall not exceed 1.5 times the simple average of bid-winning interest rates on government bonds of corresponding term within 06 months preceding the time of contract negotiation.

- The interest rate shall not exceed the average interest rates on medium-term and long-term loans of 04 state commercial banks at the time of contract negotiation.

c) Government bonds whose term is corresponding to the duration of project contract shall be determined according to the following provisions:

- If the duration of project contract is less than or equal to 10 years, the interest rate on the 10-year government bonds shall be employed to determine the loan capital interest rate.
- If the duration of project contract is exceeding 10 years to 15 years, the interest rate on the 15-year government bonds shall be employed to determine the loan capital interest rate.

- If the duration of project contract is exceeding 15 years, the interest rate on the 20-year government bonds shall be employed to determine the loan capital interest rate.4. The loan capital interest rates mentioned in Point b and Point c Clause 3 of this Article shall be used as the basis for calculation of the loan capital interest rate specified in the project proposal, the feasibility study report and the bidding documents which are submitted to competent authorities for approval".

Article 2. Transitional provisions

1. Project contracts and their appendixes which are signed before the date of entry into force of this Circular shall remain their validity.

2. With regard to project proposals or feasibility study reports which have been approved by competent authorities before the date of entry into force of this Circular, competent authorities shall review and adjust financial plans for implementing the following steps in conformity with regulations of this Circular.

3. With regard to project contracts and their appendixes which are under negotiation and not yet signed by the effective date of this Circular, competent authorities shall review and adjust relevant terms and conditions in project contracts in conformity with regulations of this Circular.
Article 3. Effect

This Circular takes effect on September 05, 2017.

Article 4. Organization of implementation

Any difficulties arising in the course of implementation of this Circular should be reported to the Ministry of Finance for consideration./.

For the Minister

The Deputy Minister

Tran Van Hieu