1. Only 5 areas are invested in under the PPP method

Public-private partnership (PPP) investment is an investment method based on term-term cooperation between the State and the private sector through the signing and implementation of PPP project contracts to attract investors. The private sector participates in investing in construction works, infrastructure systems, and providing public products and services that the State is responsible for providing.

Article 4 of the Law on Investment under the Public-Private Partnership method lists investment fields under the PPP method including:

(1) Traffic;

(2) Power grids, power plants;

(3) Irrigation, clean water supply, drainage, wastewater and waste treatment; (4) Health, education - training;

(5) Information technology infrastructure.

In particular, the minimum total investment scale of PPP projects for each field is as follows:

- Not less than 200 billion VND for projects in the fields of: Transportation; grid; irrigation, clean water supply, drainage and wastewater treatment, waste treatment and information technology infrastructure.

In the case of an area with difficult and extremely difficult socio-economic conditions according to investment law, the amount must not be less than 100 billion VND.

- Not less than 100 billion VND for projects in the fields of: Health, education - training.

2. Project information must be published on the National Bidding Network System

To ensure openness and transparency in PPP investment, Article 9 of the Law stipulates that some information must be published on the National Bidding Network System. Specifically:

- Information about investment policy decisions; decide to approve PPP projects;

- Information on investor selection, including: Pre-qualification notice, bid notice, short list, investor selection results;

- Information about selected investors and PPP project enterprises;

- Main content of PPP project contract, including: Total investment capital; capital structure in the project; type of contract; Project implementation deadline (if any); product and service prices and fees; form and location for collecting prices, fees (if any) and other necessary information;

- Finalized value of public investment capital in the PPP project in case of use;

- Legal documents on investment under the PPP method;

- Investor database;

- Information on resolving petitions and handling violations of law on PPP investment.

In addition, this information is also encouraged to be posted on other mass media.

3. 12 prohibited acts in PPP investment

These acts are specified in Article 10 of this Law. Specifically:

- Deciding on investment policies for PPP projects that are not consistent with strategies, planning, and plans; Unable to determine the source of State capital in a PPP project in case the project requires its use; improper authority, order and procedures;

- Approve PPP projects without investment policies; not in accordance with investment policies; improper authority, order and procedures;

- Competent agencies and contract signing agencies collude with consulting organizations and investors, leading to decisions on investment policies and approval of PPP projects, causing loss of capital and assets of the State and property. national resources; harming or violating the interests of citizens and the community;

- Failure to ensure fairness and transparency in investor selection;

- Disclosing and receiving documents and information about the investor selection process;

- Bid collusion;

- Transfer of shares, capital contributions, rights and obligations not in accordance with the provisions of this Law and the PPP project contract;

- Stop providing public products and services outside of the cases specified in the PPP project contract;

- Giving, receiving, or brokering bribes;

- Abusing positions and powers for appropriation, personal gain, and corruption in the management and use of state capital in PPP projects; Illegal intervention in the PPP project implementation process;

- Fraud, falsification, falsification of information, records and documents; intentionally providing information that is not truthful or objective;

- Obstructing the detection and handling of violations of the law on investment in the PPP method.

4. Detailed regulations on investor eligibility

Not all investors can participate in PPP investment, but only investors who meet the following conditions:

- Have registration of establishment and operation issued by a competent authority of the country in which the investor is operating;

- Independent financial accounting; ensure competition in investor selection;

- Not in the process of dissolution; not in the case of insolvency according to the provisions of law;

- Not currently banned from participating in PPP investment activities;

- Enterprises with 100% charter capital held by the State must enter into a joint venture with private sector investors to participate in bidding;

- Investors established under foreign laws must meet market access conditions when bidding for projects in industries and occupations with conditional market access according to investment laws.

5. Unify the selection of investors according to the Investment Law

The forms of investor selection applied in PPP investment are as follows:

- Open bidding

+ Is a form of investor selection in which the number of participating investors is not limited.

+ Applies to all PPP projects, except for cases that must be selected in a special form.

- Competitive negotiation

+ Is a form of investor selection in which only a few investors who meet project implementation requirements are invited to participate.

+ Applicable in cases where high technology application projects belong to the list of high technologies prioritized for investment and development according to the provisions of law on high technology or projects requiring new technology.

- Appoint investors

Applies in one of the following cases:

+ The project needs to ensure national defense, national security, and State secrets;

+ The project needs to immediately select a replacement investor to ensure continuity in the process of building works, infrastructure systems, and providing public products and services.

- Choosing investors in special cases

In case the project has specific and separate conditions that cannot apply the above forms of investor selection, the competent agency shall submit to the Prime Minister for consideration and decision on the investor selection plan. invest.

6. PPP project enterprises are established in the form of a company

According to the provisions of Article 44, after the decision to approve the investor selection results, the investor can only establish a PPP project enterprise according to the model of a limited liability company or joint stock company (no is a public company) and has the sole purpose of signing and implementing PPP project contracts.

Enterprises are allowed to issue and buy back individual bonds they have issued and securities to mobilize capital to implement PPP projects; It is not allowed to issue individual convertible bonds or individual bonds with warrants.

Bond issuance must meet three conditions:

- The amount of capital mobilized through bond issuance does not exceed the value of the loan capital determined in the PPP project contract;

- Capital raised through bond issuance cannot be used for any purpose other than project implementation under the PPP project contract or for restructuring the enterprise's debts;

- PPP project enterprises must open a blocked account to receive money to buy bonds and disburse according to regulations.

7. Mechanism for sharing increases and decreases in revenue

Compared to the previously submitted draft, Article 84 of this Law has finalized the plan to implement the mechanism for sharing increases and decreases in revenue as follows:

- When actual revenue is higher than 125% of the revenue level in the financial plan in the PPP project contract, the investor and PPP project enterprise will share with the State 50% of the increase in revenue between the actual revenue That and revenue reach 125% of revenue in the financial plan.

- The State shares with investors and businesses in PPP projects 50% of the revenue reduction between actual revenue and revenue committed in the contract for PPP projects that meet certain conditions.

This is considered a new mechanism, especially important during the implementation of PPP projects.