Circular No. 86/2019/TT-BTC dated December 03, 2019 of the Ministry of Finance guiding the determination of the reserve price in auction for lease or definite-term transfer of the right to operate road infrastructure assets invested and managed by the State

CIRCULAR

Guiding the determination of the reserve price in auction for lease or definite-term transfer of the right to operate road infrastructure assets
invested and managed by the State.

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Pursuant to the Law No. 11/2012/QH13 on Prices dated June 20, 2012 and its guiding documents;

Pursuant to the Law No. 15/2017/QH14 on Management and use of public property dated June 21, 2017;

Pursuant to the Law No. 01/2016/QH14 on Property Auction dated November 17, 2016;

Pursuant to the Government's Decree No. 33/2019/ND-CP dated April 23, 2019 prescribing the management, use and operation of road transportation infrastructure assets;

Pursuant to the Government's Decree No. 87/2017/ND-CP dated July 26, 2017 defining the functions, tasks, powers and organizational structure of the Ministry of Finance;

At the request of Director of Price Management Department,

The Minister of Finance promulgates the Circular guiding the determination of the reserve price in auction for lease or definite-term transfer of the right to operate road infrastructure assets invested and managed by the State.

Article 1. Scope of regulation

This Circular guides the determination of the reserve price in auction for lease or definite-term transfer of the right to operate road infrastructure assets invested and managed by the State.

Article 2. Subjects of application

1. The lessee or transferee is an enterprise that rents and accepts the transfer of the right to operate road infrastructure assets invested and managed by the State for a definite term in accordance with the Government’s Decree No. 33/2019/ND-CP dated April 23, 2019 prescribing the management, use and operation of road transportation infrastructure assets.

2. The lessor or transferor is an agency assigned to manage road traffic infrastructure assets invested and managed by the State in accordance with the Government’s Decree No. 33/2019/ND-CP dated April 23, 2019 prescribing the management, use and operation of road transportation infrastructure assets.

3. Other relevant organizations and individuals.

Article 3. Principles of determining the reserve price in auction for lease or definite-term transfer of the right to operate road infrastructure assets

1. Ensuring reasonable and valid actual cost recovery to form and manage assets, in accordance with the State's socio-economic development policies and guidelines in each period.

2. Being compatible with the market price of assets of the same type or having the same technical standards and quality at the time of leasing or transferring with the equivalent leasing or transferring purpose.

3. Complying with the regulations, standards, expenditure norms and economic-technical norms promulgated by competent State agencies.

Article 4. Determination of the reserve price in auction for lease of the right to operate road infrastructure assets

1. The reserve price in auction for lease of the right to operate road infrastructure assets is the lowest initial price in auction for lease of the right to operate road infrastructure assets

2. The reserve price in auction for lease of the right to operate road infrastructure assets shall be determined on the basis of the market rent price of assets of the same type or having the same technical standards and quality at the time of leasing with the equivalent leasing purpose; or estimated revenue and expenses derived from the operation of assets during the leasing term in case there is no asset of the same type or having the same technical standards and quality at the time of leasing with the equivalent leasing purpose for comparison.

3. The reserve price in auction for lease of the right to operate road infrastructure assets specified in this Article shall be determined by the pricing methods and valuation methods from the system of Vietnam’s valuation standards specified by the Ministry of Finance, ensuring that each asset must be applied with at least two (02) different methods submitted to the Ministry of Transport or the People's Committees of the provinces or municipalities for consideration and decision.

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