The specific guidance on selection of Investors on BOT, BTO or BT Contract

28/02/2011
The Ministry of Planning and Investment issued the Circular No. 03/2011/TT-BKHDT guiding the implementation of a number of provisions of Decree No. 108/2009/ND-CP issued by the Government on 27th November 2009 on investment in the form of BOT, BTO or BT Contract.
Accordingly, the party calling for tenders (an unit under the competent state authority) may organize a tender for selection of investor when (i) having the project on the list of projects announced by the ministries, the provincial people's committees and (ii) having the approved feasibility study report, the plans for selection of investors, the tender invitation or request documents. The investor participating in bidding must meet the following conditions: (i) having the legal status (for the investors being an organization) or the civil capacity under provisions of laws (for the investor being an individual), (ii) having capital sources for project implementation as required, (iii) may only participate in bidding as an independent unit or in partnership with other investors, (iv) having undertaken in writing that they do not fall into bankruptcy or be in the process of dissolution and not being concluded by the competent authority that their financial situation is unfair or they are not being dealt with violations in accordance with laws.

There are two forms to select the investors such as (i) domestic or international open bidding and (ii) designation of investors. For the form of open bidding, the method of one stage, two file bags is applied; and for the form of designation of investors, the method of one stage, one file bag is applied. The general process for selecting investors includes 5 stages such as: (i) formulating, appraising and approving the plans for selection of investors; (ii) preparation for selection of investors; (iii) issuing tender invitation or request documents and receiving the tender and proposal documents; (iv) assessing the tender and proposal documents; and (v) submission, verification, approval and notice of the results to the investors.

                                          by Lawyers of Bizconsult Law Firm