Decree No. 15/2015/ND-CP dated February 14, 2015 of the Government on investment in the form of public-private partnership

THE RATIO OF EQUITY OF AN INVESTOR’S PUBLIC-PRIVATE PARTNERSHIP

In accordance with the Decree No. 15/2015/ND-CP dated February 14, 2015 of the Government On investment in the form of public-private partnership. The ratio of equity of an investor must not be lower than 15% of the total investment capital. For a project capitalized at over VND 1,500 billion, the equity ratio shall be determined on the principle of partial progress.

Besides, the Decree also prescribes the Conditions for projects to be selected with the public-private partnership form. Accordingly, A project to be selected for implementation in the form of public-private partnership must fully satisfy the following conditions to be in line with the development master plan and plan of the sector or region and local socio-economic development plan; to be suitable to the investment field; to be capable of attracting and receiving commercial capital, technologies and management experience of investors; to be capable of providing quality products or services in a continuous and stable manner to meet user demands; and to have a total investment capital of at least VND 20 billion, except investment projects under O&M contracts and projects as agricultural and rural infrastructure facilities and services to develop connection between production and processing and consumption of agricultural products.

Similarly, projects proposed by investors must have a total investment capital of at least VND 20 billion; be suitable to the investment field; to be capable of attracting and receiving commercial capital, technologies and management experience of investors……. and investors being state enterprises enter into partnerships with other enterprises for proposing projects.

Also in accordance with this Decree, investors shall be selected in the form of open bidding or contractor appointment; investors may enjoy incentives in the course of bidding for investor selection when having feasibility study reports or project proposals (for group-C projects) approved by ministries, sectors or provincial-level People’s Committees.