Vietnam Law has regulations on implementation of ppp contracts. Let’s find out this issue with Lawyer X through the following situation: “Dear Lawyer! I want to ask how are implementation of ppp contracts be regulated in Vietna? What are regulations on selection of contractors bidding for execution of PPP projects in Vietnam? Thanks for answering my questions!”
Legal grounds
- 2020 Vietnam Law on Public-Private Partnership Investment
Regulations on Preparation of building sites
Provincial People’s Committees shall assume the prime responsibility for, and cooperate with competent authorities and contracting entities in, arranging compensation, support and resettlement, and completing procedures for land allocation, land lease, and building site handover for project implementation purposes in accordance with the law on land, PPP and other related contracts.
Formulation, assessment and approval of the design following the basis design and cost estimate
– Based on the feasibility study report and the provisions of the PPP contract, the PPP project enterprise must perform one or more of the following tasks:
+ Making the construction design after the basic design. With respect to sub-projects or items using public investment capital, making the cost estimate and sending it to the construction-specialized authority in accordance with law on construction for assessment purposes;
+ Making the design. With respect to sub-projects or items using public investment capital, making the cost estimate and sending it to the specialized authority in accordance with other law for assessment purposes.
– PPP project enterprises shall approve designs and cost estimates specified in Clause 1 of this Article and send the following documents to the contracting authority for monitoring and supervisory purposes:
+ Approved design documents and cost estimates;
+ Design and cost estimate assessment documentation of specialized authorities.
Selection of contractors bidding for execution of PPP projects
PPP project enterprises must adopt uniform regulations on contractor selection to be applied to enterprises according to the following principles:
– Ensure fairness, transparency and economic efficiency;
– Ensure these regulations do not affect or negatively impact national defense and security, state secrets, national or community interests and interests of competent authorities and contracting authorities;
– The selected contractor must satisfy all capacity and experience requirements, and have feasible solutions for the execution of the package or project; take responsibility for fulfillment of quality and progress requirements of the package under the contract signed with the PPP project enterprise, including liability clauses by which the selected contractor are bound if the quality of the construction work or infrastructure system does not meet requirements set out in the PPP contract. PPP project enterprise shall be responsible for the quality and progress of implementation of the project;
– Prefer domestic contractors bidding for the work that domestic contractors can undertake;
– Only hire foreign workers if domestic workers are unqualified.
Management and supervision of quality of construction works and infrastructure systems
– The PPP project enterprise shall be responsible for the management and supervision of the quality, and the acceptance testing of the entire work and infrastructure system in accordance with law.
– In the course of development and construction of the contractual work or infrastructure system, the contracting authority shall assume the following responsibilities:
+ Conduct the inspection of the PPP project enterprise’s supervision of the process for construction of works and infrastructure systems;
+ Conduct the inspection of compliance with engineering and construction procedures, standards and regulations for works and infrastructure systems;
+ Conduct the quality assessment of construction parts, items and the entire work and infrastructure system whenever there is any doubt about quality, or upon the competent regulatory authority’s request;
+ Request the PPP project enterprise to demand the contractor’s adjustment or suspension of construction when seeing that the quality of the work fails to conform to requirements.
– The contracting authority may hire a consultant to assist in performing their responsibilities specified in Clause 2 of this Article.
– Costs for hiring quality accreditation consultants and other related costs shall be subject to the following regulations:
+ In case where the contracting authority concludes that the quality of the work or infrastructure system fails to meet the requirements set forth in the contract through the fault of PPP project enterprise or the contractor, the PPP project enterprise shall be responsible for payment of these costs;
+ In case where the contracting authority concludes that the quality of the work or infrastructure system meets the requirements set forth in the contract, or concludes that it does not meet the requirements set out in the contract without fault of the PPP project enterprise or the contractor, the contracting authority shall use the project implementation expenses specified in Clause 3 of Article 73 in 2020 Vietnam Law on Public-Private Partnership Investment for payment.
Settlement of expenses for investment in works and infrastructure systems
– After completing the work or infrastructure system, the contracting authority shall carry out the settlement of public capital invested in the PPP project as follows:
+ In case where public capital invested in a PPP project is managed and used in accordance with Point a of Clause 5 of Article 70 and Clause 2 of Article 72 of 2020 Vietnam Law on Public-Private Partnership Investment, the contracting authority and the PPP project enterprise shall carry out the settlement of public capital invested in the PPP project according to the provisions of law in the same manner as public investment projects;
+ In case where public capital invested in a PPP project is managed and used in accordance with Point b of Clause 5 of Article 70 herein, the contracting authority shall make a financial statement of disbursements to the PPP project enterprise audited by an auditing body as a basis for settlement of capital invested in the PPP investment project. Public capital invested in a PPP project which is qualified for settlement must not exceed the state capital specified in the contract.
– After completion of the work or infrastructure system, the contracting authority and the PPP project enterprise shall carry out the settlement of public capital invested in construction of the work or infrastructure system. The settlement value of investment capital for construction of the work or infrastructure system or the settlement value of investment capital in projects without construction components shall be determined on the basis of the contract already in effect.
– The contracting authority shall reach an agreement with the PPP project enterprise in the contract on the selection of a qualified and experienced independent auditing organization to conduct the audit of capital invested in construction of the work or infrastructure system.
– The Government shall elaborate on this Article.
Certification of completion of a construction work and infrastructure system
– After completion, the PPP project enterprise shall undertake the acceptance testing of the work or infrastructure system in accordance with construction law or other relevant legislation as a basis to prepare request documentation for completion certification.
– Based on the documentation submitted to request the certification of completion of the work or infrastructure system specified in Clause 1 of this Article, the contracting authority shall check before granting the certificate of completion to the PPP project enterprise. In case where the PPP project enterprise completes the construction phase ahead of time or saves investment costs, the certification of completion of the work or infrastructure system shall not affect the contract term or the rates of prices and charges of public products and services defined in the contract.
– The Government shall regulate documentation requirements and time limit for certification of completion of works and infrastructure systems.
Regulations on PPP project management
The management of a construction work or infrastructure system and other assets during the period of implementation of PPP projects shall comply with the provisions of 2020 Vietnam Law on Public-Private Partnership Investment, other regulations of relevant laws and terms and conditions of PPP contracts.
Requirements for operation of works and infrastructure systems
– Except for the case specified in Clause 2 of this Article, PPP project enterprises may operate infrastructure systems from the date on which the contracting authority certifies their completion as prescribed in Article 61 of 2020 Vietnam Law on Public-Private Partnership Investment.
– As for PPP projects using O&M contracts, PPP project enterprises shall operate works or infrastructure systems from the effective date of PPP contracts.
Please see more:
- Instructions for exclusive registration of company logos in Vietnam
- Service of changing the legal representative of Vietnamese enterprises
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Frequently asked questions
Provincial People’s Committees shall assume the prime responsibility for, and cooperate with competent authorities and contracting entities in, arranging compensation, support and resettlement, and completing procedures for land allocation, land lease, and building site handover for project implementation purposes in accordance with the law on land, PPP and other related contracts.
Based on the feasibility study report and the provisions of the PPP contract, the PPP project enterprise must perform making the construction design after the basic design. With respect to sub-projects or items using public investment capital, making the cost estimate and sending it to the construction-specialized authority in accordance with law on construction for assessment purposes;
Yes! The PPP project enterprise shall be responsible for the management and supervision of the quality, and the acceptance testing of the entire work and infrastructure system in accordance with law.
Conclusion: So the above is Implementation of ppp contracts in Vietnam. Hopefully with this article can help you in life, please always follow and read our good articles on the website: lsxlawfirm.com
