Decree No. 25/2020/ND-CP detailing the Bidding Law regarding investor selection

DECREE

Detailing a number of articles of the Bidding Law regarding investor selection^[1]

Pursuant to the June 19, 2015 Law on Organization of the Government;

Pursuant to the November 26, 2013 Bidding Law;

Pursuant to the June 18, 2014 Law on Investment;

Pursuant to the June 13, 2019 Law on Public Investment;

Pursuant to the November 29, 2013 Land Law;

At the proposal of the Minister of Planning and Investment;

The Government promulgates the Decree detailing a number of articles of the Bidding Law regarding investor selection.

Chapter I

GENERAL PROVISIONS

Article 1. Scope of regulation and subjects of application

1. Scope of regulation

This Decree details a number of articles of the Bidding Law regarding selection of investors for implementation of projects, including:

a/ Investment projects in the form of public-private partnership (PPP) under the law on investment in the form of PPP;

b/ Investment projects using land for construction of commercial houses; trade and service works; or multi-functional works and complexes for commercial purposes;

c/ Projects not mentioned at Points a and b of this Clause but subject to bidding in accordance with relevant specialized laws and the law on mobilization of social resources.

2. Subjects of application

a/ Organizations and individuals engaged or involved in the selection of investors for implementation of the investment projects specified in Clause 1 of this Article.

b/ Organizations and individuals carrying out investor selection activities that are not regulated by this Decree may optionally apply this Decree but shall specifically determine articles and clauses to be implemented under the Bidding Law, this Decree and other relevant laws, ensuring equality, transparency and economic efficiency.

Article 2. Assurance of appeal in bidding

An investor participating in bidding shall be considered legally and financially independent from the consultancy contractor, competent state agency and bid solicitor defined in Clause 4, Article 6 of the Bidding Law when satisfying the following conditions:

1. The investor has no shares or capital contributions with the contractor providing consultancy on:

a/ Verification or appraisal of prefeasibility study reports, feasibility study reports, design dossier and cost estimates;

b/ Making and appraisal of dossiers of invitation to prequalification or bidding dossiers, evaluation of dossiers of participation in prequalification or bids, or appraisal of prequalification results or investor selection results.

2. The investor and consultancy contractor specified in Clause 1 of this Article each does not share 30% or more of shares or capital contributions of another organization or individual.

In case the investor participates in bidding as a partner or the consultancy contractor is selected as a partner, the holding rate of other organizations and individuals in the partnership shall be determined to be equal to the total rate of shares or capital contributions of all partners.

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