Circular clarifies builder-operator contracts

The Ministry of Planning and Investment has issued Circular No.03/2011/TT-BKHDT to guide implementation of Government Decree No.108/2009/ND-CP of November 2009 on investments in the form of build-operate-transfer (BOT), build-transfer-operate (BTO), or build-transfer (BT) contracts.

Under the new regulation, an investor bidding on such a contract must: (i) have legal status or civil act capacity under the law, (ii) having sufficient capital for project implementation as required, (iii) certify in writing that are in sound financial condition and not in bankruptcy or in the process of dissolution.

Bidding will be either in the form of domestic or international open bidding or official designation of investors. The general process for selecting investors includes five stages: (i) formulating, evaluating and approving the plan for selection of investors; (ii) preparation for selection of investors; (iii) issuing tender invitations or requests for submissions, and receipt of tender and proposal documents; (iv) assessment of tender and proposal documents; and (v) verification, approval and notice of the results to the investors.

Circular No.03 takes effect on April 01.

Lawyers of Bizconsult Law Firm

vietnamnews

>   Defensive market posture leads to consolidations (26/02/2011)

>   Developers try to revive apartment sales (26/02/2011)

>   New home for southern firms (22/02/2011)

>   Dollar price increase makes real estate developers and investors worry (22/02/2011)

>   Southern metro to expand Thu Thiem urban area (19/02/2011)

>   HCMC’s first mini-condos to be on sale in May (17/02/2011)

>   Concerns arise over proposed condo leasehold policy (16/02/2011)

>   Snarl-ups plague land-use projects (15/02/2011)

>   Reviving the property market (14/02/2011)

>   Property trading floors under fire (12/02/2011)