This Circular stipulates the payment for the State’s investment capital participating in PPP projects. It includes contents such as determining the value of completed work volume, payment request documents, and audit settlement.
Scope of application
This Circular applies to the financial management of PPP projects with State participation.
Key points
- Based on the project contract between the competent state agency and the investor to determine the value of completed work volume.
- The payment request documents include the Summary Table of Completed Work Volume Values according to the Payment Request Contract and the Payment Request Letter for the State’s Investment Capital in PPP Projects.
- The audit settlement is carried out by the Ministry of Transport, with specific settlement deadlines set forth.
- Any issues encountered during implementation should be reported promptly for the Ministry of Finance to study and make appropriate amendments and supplements.
- This Circular takes effect from January 23, 2019.
🌐 Social impact of this document
- To ensure transparency and efficiency in the financial management of PPP projects.
- To provide a clear legal basis for the payment of the State’s investment capital in PPP projects.
❓ Frequently asked questions
To which projects does this Circular apply?
This Circular applies to PPP projects with State participation.
When does the Circular take effect?
This Circular takes effect from January 23, 2019.
Full text
CIRCULAR
Regulations on the profit margin on the owner's equity of investors, payment for the State's investment capital participating in project implementation, and final settlement of completed projects under the Public-Private Partnership (PPP) model for the construction of certain sections of expressways on the North-South Trunk Road Corridor for the period 2017-2020
Pursuant to the Bidding Law dated November 26, 2013;
Pursuant to the Public Investment Law dated June 18, 2014;
Pursuant to the Law on Construction promulgated on June 18, 2014;
On the basis of the Investment Law dated November 26, 2014;
Pursuant to the Law on State Budget dated June 25, 2015;
Pursuant to Resolution No. 52/2017/QH14 dated November 22, 2017 of the National Assembly on the investment policy for the construction of certain sections of expressways on the North-South Trunk Road Corridor for the period 2017-2020;
Pursuant to Decree No. 163/2016/NĐ-CP dated December 21, 2016 of the Government detailing and guiding the implementation of the Law on State Budget;
Pursuant to Decree No. 63/2018/NĐ-CP dated May 4, 2018 of the Government on investment under the PPP model;
Pursuant to Decree No. 30/2015/NĐ-CP dated March 17, 2015 of the Government detailing the implementation of certain provisions of the Bidding Law regarding the selection of investors;
Pursuant to Decree No. 32/2015/NĐ-CP dated March 25, 2015 of the Government on project cost management;
WHEREAS, Decree No. 59/2015/NĐ-CP dated June 18, 2015 of the Government on project management for investment in construction;
Pursuant to Decree No. 42/2017/NĐ-CP dated April 5, 2017 of the Government amending and supplementing some articles of Decree No. 59/2015/NĐ-CP dated June 18, 2015 of the Government on project management;
Pursuant to Decree No. 77/2015/NĐ-CP dated September 10, 2015 of the Government on medium-term and annual public investment plans;
Pursuant to Decree No. 87/2017/NĐ-CP dated July 26, 2017 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;
Implementing Resolution No. 20/NQ-CP dated March 28, 2018 of the Government on the construction of certain sections of expressways on the North-South Trunk Road Corridor for the period 2017-2020;
At the proposal of the Director of the Investment Department;
The Minister of Finance hereby promulgates this Circular regulating the profit margin on the owner's equity of investors, payment for the State's investment capital participating in project implementation, and final settlement of completed projects under the PPP model for the construction of certain sections of expressways on the North-South Trunk Road Corridor for the period 2017-2020.
PART I
GENERAL PROVISIONS
1. The organization of receiving and processing administrative procedures electronically shall be carried out through the National Public Service Portal via the Linked Public Service Software, ensuring requirements for exploitation and restructuring of business processes towards integration and coordinated resolution, enhancing the quality of administrative services provided by relevant state agencies, facilitating business households, individuals, and related agencies and organizations in receiving and processing administrative procedures.
This Circular regulates the profit margin on the owner's equity of investors, payment for the State's investment capital participating in project implementation, and final settlement of completed projects under the PPP model for the construction of certain sections of expressways on the North-South Trunk Road Corridor for the period 2017-2020 (hereinafter referred to as the PPP Project) as stipulated in Resolution No. 20/NQ-CP dated March 28, 2018 of the Government (hereinafter referred to as Resolution No. 20/NQ-CP).
Article 2. Applicability
This Circular applies to competent state agencies, agencies and units entrusted with managing the State's investment capital participating in project implementation (hereinafter referred to as the agency entrusted with managing the State's investment capital), investors, project enterprises, and other relevant agencies, organizations, and individuals involved in implementing the PPP Projects under the construction of certain sections of expressways on the North-South Trunk Road Corridor for the period 2017-2020 according to Resolution No. 20/NQ-CP.
Chapter II
SPECIFIC PROVISIONS
Article 3. Determination of Investor's Profit
1. The Ministry of Transport shall determine and be responsible for the profit level of each PPP project to ensure compliance with the profit framework issued by the Ministry of Transport pursuant to Clause 2, Article 73 of Decree No. 63/2018/ND-CP dated May 4, 2018 of the Government on Public-Private Partnership investment, serving as the basis for preparing and approving feasibility study reports and tender documents for selecting investors.
2. The profit level prescribed in Clause 1 of this Article shall be calculated based on the average return on equity (as a percentage) of the investor as stipulated in Clause 3, Article 1 of Resolution No. 20/NQ-CP. The investor's profit shall be calculated from the time the PPP project is permitted by the competent authority to commence operation and exploitation.
3. The profit level of the investor prescribed in the project contract shall be determined through the bidding process for selecting investors. In case there is only one successful pre-qualified investor, the competent state agency shall be responsible for reporting to the Government for consideration and decision on the investor's profit level.
Article 4. State Investment Capital Participation in PPP Projects
1. The State's investment capital participation in PPP projects shall be implemented in accordance with Clause 1, Article 1 of Resolution No. 20/NQ-CP.
2. The amount of State support for part of the construction cost to ensure financial feasibility shall be determined based on the results of the bidding process for selecting investors to implement PPP projects.
3. The State's investment capital participation in PPP projects shall be allocated in the medium-term public investment plan sourced from the State budget for the period 2016-2020, distributed to national key projects according to Resolution No. 26/2016/QH14 dated November 10, 2016 of the National Assembly on the Medium-Term Public Investment Plan for the period 2016-2020 and Resolution No. 52/2017/QH14 dated November 22, 2017 of the National Assembly on the principle of investment for certain sections of expressways on the North-South Trunk Road East Route for the period 2017-2020.
Article 5. Management and Payment of State Investment Capital Participation in PPP Projects
1. For the public investment capital allocated for works carried out by state agencies, management and payment shall be conducted in accordance with regulations on managing and paying public investment capital sourced from the State budget.
2. For the State's investment capital supporting part of the construction cost, the State will make payments for the value of completed work volumes after the investor has disbursed 50% of their equity capital and meets the conditions for disbursing the loan capital as stipulated in Clause 1, Article 1 of Resolution No. 20/NQ-CP, ensuring the following principles:
a) The concurrent payment ratio between the State's investment capital, commercial loans, and the investor's equity capital must be specifically stipulated in the project contract between the competent state agency and the investor.
b) Payments must correspond to the volume and value of completed construction that have been accepted, while ensuring they fall within the scope of the medium-term and annual public investment plans sourced from the State budget approved by the competent authority to implement PPP projects.
3. Allocation and verification of allocation of public investment capital allocated to support part of the construction cost shall be carried out in accordance with regulations on managing and paying public investment capital sourced from the State budget.
Article 6. Payment Control
1. For works carried out by state agencies
The files and documents for advance payments and settlements; the content of advance payments and settlements for completed work volumes; the principles of payment control by the State Treasury; the deadlines for advance payments and settlement deadlines shall be implemented according to the regulations of the Ministry of Finance as stipulated in Circular No. 08/2016/TT-BTC dated January 18, 2016 on the management and settlement of investment capital using state budget funds; Circular No. 108/2016/TT-BTC dated June 30, 2016 amending and supplementing certain articles of Circular No. 08/2016/TT-BTC dated January 18, 2016 on the management and settlement of investment capital using state budget funds; Circular No. 52/2018/TT-BTC dated May 24, 2018 amending and supplementing Circulars No. 08/2016/TT-BTC dated January 18, 2016 and No. 108/2016/TT-BTC dated June 30, 2016 on the management and settlement of investment capital using state budget funds.
2. For the portion of state investment capital supporting part of the construction costs
a) The agency entrusted with managing the state investment capital has the responsibility to send the State Treasury where the account is opened the legal documents, including:
- The project contract and any annexes related to payment if applicable (only sent once at the time of the first payment request);
- The public investment capital plan assigned by the competent authority to implement the PPP project;
- A summary table of the value of completed work volume proposed for payment according to the project contract prepared by the investor and confirmed by the agency entrusted with managing the state investment capital (Annex No. 01);
- The request for payment of state investment capital from the agency entrusted with managing the state investment capital (Annex No. 02);
- Transfer vouchers in accordance with the accounting voucher system of the Ministry of Finance;
- A document from the agency entrusted with managing the state investment capital confirming that the investor has fully disbursed their own capital as stipulated in Clause 1, Article 1 of Resolution No. 20/NQ-CP and meets the conditions for disbursing loan capital according to the project contract.
b) Principles of payment
- The allocation and distribution of public investment capital allocated to support the cost of constructing PPP projects shall be carried out according to the regulations applicable to state budget investment capital.
- After receiving detailed public investment capital plans from ministries, sectors, and localities, the State Treasury shall carry out payment control work according to the provisions of this Circular.
- The State Treasury shall base its payment control on the payment request documents of the agency entrusted with managing the state investment capital and the project contract.
- In cases where additional payment request documents are required, the State Treasury shall issue a notice of refusal to pay or a notification document to the agency entrusted with managing the state investment capital within four working days from the date of receipt of the payment request documents, so that the agency can complete the documents in accordance with the regulations.
- The total amount paid to the investor shall not exceed the approved state investment capital support, and the amount paid to the investor in a year shall not exceed the annual investment capital plan allocated to the PPP project. The cumulative amount paid for the PPP project shall not exceed the medium-term public investment plan assigned.
- The deadline for settling the investment capital plan shall be implemented according to the regulations of the Ministry of Finance on the management and settlement of investment capital using state budget funds.
- The agency requesting payment of state investment capital shall be responsible under the law and before the competent authority for determining whether the investor has ensured the full disbursement of the equity capital ratio and met the conditions for disbursing loan capital according to the project contract; shall be responsible for the accuracy of the volume of work performed and the value proposed for payment; shall ensure the legality of the data and documents provided to the State Treasury and relevant state agencies.
Article 7. Settlement of completed PPP project works
1. Principles of settlement
After the completion of the PPP project has been accepted and handed over for use, the capital investment settlement for construction works must be carried out in accordance with the Circular of the Ministry of Finance on the settlement of completed projects funded by state capital (currently Circular No. 09/2016/TT-BTC dated January 18, 2016, and Circular No. 64/2018/TT-BTC dated July 30, 2018) and the provisions of this Circular.
2. Preparation, submission, approval of settlement
a) Authority to prepare the settlement report:
- The agency or unit entrusted by the Ministry of Transport to manage the state's investment capital shall prepare the settlement report for the portion of investment capital allocated to works carried out by state agencies.
- The investor shall prepare the settlement report for the completed project works carried out by the investor.
b) Documents for submission for approval of settlement (one set submitted to the authority responsible for reviewing and approving the settlement): documents as prescribed in the Circular of the Ministry of Finance on the settlement of completed projects funded by state capital, the project contract, and any supplementary agreements to the project contract.
c) Approval authority for settlement: Minister of Transport.
d) Authority to review settlement: Ministry of Transport.
đ) Audit of the settlement report: In the project contract, the Ministry of Transport agrees with the investor on the engagement and principles for selecting independent auditing organizations with competence and experience to conduct the audit of the construction project investment value.
e) Content of settlement review conducted in accordance with the Circular of the Ministry of Finance on the settlement of completed projects funded by state capital.
g) Time limit for settlement carried out in accordance with Clause 7, Article 24 of Circular No. 88/2018/TT-BTC dated September 28, 2018, of the Ministry of Finance, which stipulates certain contents regarding financial management for PPP projects and the costs of selecting investors.
h) After completing the settlement of the finished project works, the Ministry of Transport is responsible for submitting a report to the Ministry of Finance for consolidation and monitoring.
Article 8. Implementation clause
1. This Circular takes effect from January 23, 2019.
2. During implementation, if the regulatory legal documents cited for application in this Circular are amended, supplemented, or replaced by new documents, they will be applied according to these new documents.
3. In case difficulties arise during implementation, units are requested to promptly reflect them in writing so that the Ministry of Finance can study and make appropriate amendments and supplements.
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Place of receipt: - Central Party Secretariat; - Prime Minister, Deputy Prime Ministers; - Office of the General Secretary; - Office of the President; - Central Party Office and Party Committees; - National Assembly Office; - Office of the Government - Supreme People's Procuracy; - Supreme People's Court; - State Audit Office; - Ministries, agencies equivalent to ministries, and government agencies; - People's Councils, People's Committees of provinces and centrally governed cities - Central Agencies of Mass Organizations, State-owned Corporations, and Economic Groups; - Department of Finance, State Treasury of provinces and centrally governed cities. - Official Gazette; - Legal Documents Inspection Department, Ministry of Justice; - Units under and directly affiliated with the Ministry of Finance; - Government Electronic Portal; - Ministry of Finance Portal; - To be filed: VT, DT (400). |
kt. minister
deputy minister
(signed)
Tran Van Hieu
|
Appendix 01
SUMMARY TABLE OF COMPLETED WORK VOLUME VALUES FOR SETTLEMENT
(Annexed to Circular No. 120/2018/TT-BTC dated December 10, 2018, of the Ministry of Finance)
Project name: Project code:
Based on the project contract between the competent state agency and the investor number:...dated...month...year...
Investor or project enterprise:.
Payment number:
Basis for determination:
Volume determination table for completed work each time number...dated...month...year...
| Content of work | Completed volume | Value of completed volume | Amount proposed for payment | Remarks | |||
| Completed volume in the period proposed for payment | Cumulative completed volume up to the date proposed for payment | Value of completed volume in the period proposed for payment | Cumulative value of completed volume up to the date proposed for payment | Proposed payment for this period | Cumulative amount already paid | ||
| Implementing the Project... | |||||||
| Total: | |||||||
1. Contract value:…
2. State capital contribution value in the Project (according to the contract):
3. Cumulative value of the volume implemented by the investor up to the date proposed for payment:
4. Cumulative state capital contribution value disbursed up to the date proposed for payment:
5. Proposed state capital contribution value to be disbursed for this period:
Amount in words:…(is the amount proposed for payment for this period).
| REPRESENTATIVE FROM THE CONTRACTOR PROJECT ENTERPRISE (Signature, full name, position, and stamp) |
REPRESENTATIVE FROM THE AUTHORITY RESPONSIBLE FOR MANAGING THE STATE CAPITAL PARTICIPATION IN IMPLEMENTATION (Signature, full name, position, and stamp) |
Appendix 02
|
Competent State Agency Number:... |
SOCIALIST REPUBLIC OF VIET NAM
Independence – Freedom – Happiness
|
APPLICATION FOR SETTLEMENT OF STATE CAPITAL PARTICIPATION IN PPP PROJECT
Respectfully submitted to: State Treasury…
Project name, works:… Project investment code:…
Investor or project enterprise:…Investor code:…
Investor or project enterprise bank account: Domestic capital…at:…
Foreign capital…at…
Based on the project contract between the competent state agency and the investor number:...dated...month...year...
Based on the summary table of completed work volume values for settlement number…dated…month…year…
Cumulative value of completed volume of the item proposed for payment:…dong.
Amount proposed for payment:
Source of funds: (Centralized construction; …)…
Included in the capital plan: Year…
| Content | Total state capital participation in the Project | Cumulative completed volume value from commencement to the end of the previous period | Cumulative state capital disbursed from commencement to the end of the previous period | Proposed state capital to be disbursed for this period | ||
| Domestic capital (TN) | Foreign capital (NN) | Domestic Capital | State Capital | |||
| Payment for the Project | ||||||
| (*) The basis for budgeting expenses is based on the current regulations of the Ministry of Finance regarding travel expenses for civil servants and employees of the State going on short-term business trips abroad funded by the state budget. | ||||||
Total amount proposed for payment in figures:…
In words:…
Beneficiary unit name…
Beneficiary unit bank account number…at…
Date...Month...Year...
PORTION FOR THE STATE TREASURY
Date of receipt of the Payment Request Form:...
The State Treasury accepts: In accordance with the following content:
(Cross out unused sections)
|
Total amount | Domestic capital | Foreign capital |
| Amount accepted | |||
| + Section..., sub-section | |||
| + Section..., sub-section | |||
| + Section..., sub-section | |||
| + Section..., sub-section | |||
|
|||
| - Amount of advance payment recovered | |||
| Previous years | |||
|
|||
| + Value Added Tax | |||
| - . . .. | |||
| + Amount to be paid to the receiving unit | |||
| Printed text: | |||
| Amount refused: | |||
| Reason: |
Note:…
|
PAYMENT STAFF ((Signature, full name) |
DEPARTMENT HEAD ((Signature, full name) |
DIRECTOR OF THE STATE TREASURY (SIGNATURE, FULL NAME AND POSITION, AND SEAL) |
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