From January 15, 2010, a build-operate-transfer (BOT), build-transfer-operate (BTO) or build-transfer (BT) project which has been publicized with two or more investors registered for implementation should be put for domestic or international public bidding for selection of contractors. Contractor appointment will be applicable to such a project if only one investor registers for project implementation or to projects falling under the Prime Minister’s deciding competence.
Under Government Decree No. 108/2009/ND-CP of November 27, stipulating investment in BOT, BTO and BT forms, projects on construction and operation or management of new infrastructure facilities or those on expansion or modernization of existing ones, such as roads, road tunnels and ferry landings, railways, railway tunnels and bridges, airports, seaports, river ports, clean water supply and water drainage works, wastewater treatment facilities, power plants and transmission lines, may be invested in any of these forms and enjoy simplified investment procedures and investment incentives.
Investors and managing enterprises of these projects should themselves seek capital sources for project implementation under the terms of project contracts. For projects capitalized at up to VND 1.5 trillion, the ratio of own capital of project enterprises must not be lower than 15% of total project investment. For projects capitalized at more than VND 1.5 trillion, that ratio will be determined by the partially progressive method. Total state capital must not exceed 49% of total investment capital of these projects.
An investor may select and register to implement a project within 30 days after this project is listed and published on the mass media.
BOT and BTO project enterprises will be eligible for enterprise income tax, import and export duty incentives, and exemption from land use levy on land areas allocated by the State or land rents for the whole project duration.