Decree No. 30/2015/ND-CP dated March 17, 2015 of the Government guiding the implementation of a number of Articles on investor selection of the Law on Bidding

INCENTIVES OF 5% IN SELECTION OF INVESTORS IN PPP PROJECTS

On March 17, 2015, the Government issued the Decree No.  30/2015/ND-CP dated March 17, 2015 of the Government guiding the implementation of a number of Articles on investor selection of the Law on Bidding, within that, the important contents mention on incentives in selection of investors in PPP projects If the investor has a feasibility study report or project proposal (for projects of group c) that is approved, such investor shall have incentives during the financial – commercial evaluation.

In particular, if the service-price-based method is applied, the investor that is not eligible for incentives must add an amount of 5% of the service price to the initial service price of such investor for comparison and ranking. If the state contribution method is applied, the investor that is not eligible for incentives must add an amount of 5% of the proposed state contribution to the initial state contribution proposed by the investor for comparison and ranking.

Similarly, if the public-interest-based method is applied, the investor that is eligible for incentives may add an amount of 5% of the amount payable to state budget to the initial amount payable to state budget proposed by the investor for comparison and ranking. If mixed method is applied, the investor shall have incentives according to the proportions of the mixed method. Nevertheless, the total value of incentives must not exceed 5%.

Besides, the Decree also prescribes the costs of investor selection. In consideration of the scale and characteristics of the project, the soliciting entity shall decide the selling price for a set of pre-qualification documents, bidding documents, or request for proposals (inclusive of tax). With regard to domestic bidding, the selling price for a bidding documents or request for proposals shall not exceed VND 20,000,000; the price for a set of pre-qualification documents shall not exceed VND 5,000,000. With regard to international bidding, the selling price for a bidding documents or request for proposals shall not exceed VND 30,000,000; the price for a set of pre-qualification documents shall not exceed VND 10,000,000.