Eliminate the regulation of a maximum difference of 10% of the land fund value expected to be paid to investors.

Illustration photo

The Government Office issued Notice No. 511/TB-VPCP concluding the Government Standing Committee's conclusion on the draft Decree detailing the implementation of projects applying the Build-Transfer contract type.

According to the announcement, the development and promulgation of a legal framework must be based on practical requirements and draw profound lessons from previous shortcomings to design and develop policies to ensure comprehensive innovation in implementation and payment methods for investors.

Overcome as much as possible the shortcomings and obstacles in implementation, meet the practical requirements of openness to attract investors, while ensuring strictness, not creating loopholes to take advantage of policies causing loss of state assets.

The payment land fund is the land fund in the case of land acquisition and the investor advances the money for site clearance; land allocation and land lease can only be carried out when the conditions under the provisions of the land law are met. The state budget source for payment to the investor from the source of public asset auctions does not have to be included in the medium-term public investment plan.

"The value of the land fund expected to be paid must not exceed the total investment of the approved BT project. The regulation of a maximum difference of 10% for the value of the land fund expected to be paid to the investor is abolished because it has no legal basis. Deduction of the land clearance cost paid by the investor in advance (including for the BT project site and the corresponding land fund) is the compensation cost approved by the State according to the compensation, support and resettlement plan," the Notice clearly stated.

The Government Standing Committee noted that the land fund for payment to investors must be consistent with the planning approved by competent authorities according to relevant laws. The land fund managed by state agencies is only a small proportion of the land planned for payment to investors that cannot be separated into independent projects and is used to pay investors implementing BT projects.

In case the land fund, public assets are separate or located in the land fund expected to be paid and can be separated into independent projects, an auction must be conducted to implement the payment form using the state budget.

Agree on the policy of 3 methods of land payment for investors implementing BT projects

The Government Standing Committee agreed on three methods of land fund payment for investors implementing BT projects as proposed by the Ministry of Finance .

The Ministry of Finance reviews the draft and clearly stipulates the criteria for selecting payment methods, for example: for group C projects, the payment method is one-time after the BT project is completed; for group A, B, C projects, the payment method is multiple times corresponding to the percentage of the BT project's acceptance volume; for large-scale projects, the payment method for the entire land fund is one-time after signing the project contract, and there must be a contract performance guarantee from a commercial bank.

Provincial People's Committees shall pay the central budget according to the regulated rate prescribed by the State Budget Law; the Ministry of Finance shall supervise and ensure correct and full payment according to regulations.

This Decree does not stipulate loan interest but implements it in accordance with relevant laws. The Ministry of Finance should consider and carefully study "recording revenue and expenditure" to ensure strictness and compliance with legal regulations.

Source: https://vtv.vn/bo-quy-dinh-chenh-lech-toi-da-10-gia-tri-quy-dat-du-kien-thanh-toan-cho-nha-dau-tu-100250927071439234.htm