Circular No. 75/2017/TT-BTC amending and supplementing certain articles of Circular No. 55/2016/TT-BTC dated March 23, 2016 of the Ministry of Finance on certain contents regarding financial management for public-private partnership (PPP) investment projects and investor selection costs.

CIRCULAR

AMENDING AND SUPPLEMENTING CERTAIN PROVISIONS OF THE CIRCULAR NO. Circular No. 55/2016/TT-BTC dated March 23, 2016 of the Ministry of Finance on certain contents regarding financial management for projects under public-private partnership (PPP) and investor selection costs

Pursuant to the Law on Bidding dated December 9, 2013;

Pursuant to the Law on Public Investment 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 State Budget Law dated June 25, 2015;

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 No. 83/2015/QH13;

Pursuant to Decree No. 15/2015/NĐ-CP dated February 14, 2015 of the Government on public-private partnership investment;

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. 77/2015/NĐ-CP dated September 10, 2015 of the Government on medium-term and annual government investment plans;

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. 215/2013/NĐ-CP dated December 23, 2013, promulgated by the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

At the proposal of the Director of the Investment Department;

The Minister of Finance issues this Circular amending and supplementing some articles of Circular No. 55/2016/TT-BTC dated March 23, 2016 of the Ministry of Finance on certain contents regarding financial management for projects under public-private partnership (PPP) and investor selection costs (hereinafter referred to as Circular No. 55/2016/TT-BTC).

Article 1. Amend and supplement

"3. The interest rate on borrowed capital shall be calculated as follows in specific cases:

a) In the case of tendering to select investors: The interest rate on borrowed capital shall be determined based on the bidding documents of the selected investor.

b) In the case of appointing investors: The interest rate on borrowed capital shall be determined through negotiations and agreements between the competent state agency and the investor. The reference interest rate on borrowed capital for negotiations and agreements must ensure the following principles: - Not exceeding 1.5 times the simple average interest rate of government bond auction wins with terms corresponding to the duration of the PPP project contract (project contract) in the ten most recent successful bond issuance auctions prior to the negotiation of the project contract. The winning interest rate of government bonds is published on the website of the State Treasury or the Hanoi Stock Exchange.

- In the case where the number of successful government bond auctions with terms corresponding to the duration of the project contract within six months prior to the negotiation of the project contract is less than ten, the reference interest rate on borrowed capital for negotiations and agreements shall not exceed 1.5 times the simple average interest rate of government bond auction wins with terms corresponding to the duration of the project contract in the six months prior to the negotiation of the project contract.

- Not exceeding the average medium- and long-term lending interest rate of four state-owned commercial banks at the time of negotiating the project contract.

c) Government bonds with terms corresponding to the duration of the project contract are determined as follows:

- For project contracts with implementation periods of up to 10 years: the interest rate on 10-year government bonds shall be used to determine the interest rate on borrowed capital.

- For project contracts with implementation periods over 10 years but up to 15 years: the interest rate on 15-year government bonds shall be used to determine the interest rate on borrowed capital.

- For project contracts with implementation periods over 15 years: the interest rate on 20-year government bonds shall be used to determine the interest rate on borrowed capital.

4. The interest rate on borrowed capital stipulated in Point b and Point c Clause 3 of this Article serves as the basis for calculating the interest rate on borrowed capital in the Project Proposal, Feasibility Study Report, and bidding documents for approval by the competent authority."

1. For projects that have signed project contracts and supplementary project contract documents before the effective date of this Circular, they shall continue to be implemented according to the signed project contracts and supplementary project contract documents.

Article 2. Transitional provisions

2. For projects with approved Project Proposals and Feasibility Study Reports before the effective date of this Circular: The competent state agency shall review and adjust the financial plan based on the provisions of this Circular to proceed with subsequent steps.

3. For project contracts and supplementary project contract documents currently under negotiation and not yet signed by the effective date of this Circular: The competent state agency shall review and adjust, updating relevant clauses and articles in the project contract based on the provisions of this Circular.

This Circular takes effect from September 5, 2017.

Article 3. Effectiveness

- Department of Finance,

Article 4. Organization of Implementation

In the course of implementation, if any difficulties arise, please promptly report them to the Ministry of Finance for study and submission to the competent authority for resolution./.