Investor selection for renewable energy projects in special cases under PPP Law and the Decree 35/2021/ND-CP guiding PPP Law
Law on public-private partnership investment No. 64/2020/QH14 promulgated by the National Assembly on 18 June 2020 (“PPP Law”) takes effect from 1 January 2021. Decree 35/2021/ND-CP issued by the Government on 29 March 2021 detailing and guiding the implementation of the PPP Law (“Decree 35”) takes effect from 29 March 2021.
Investor selection for renewable energy projects by in special cases is specified in the PPP Law and Decree 35 with the following key takeaways:
Applicable cases (Article 40 of the PPP Law and Article 69.1 of Decree 35).
(i) PPP projects have specific and unique conditions that are unable to apply open bidding, competitive negotiation or investor appointment, or
(ii) PPP projects, which are able to apply open bidding, competitive negotiation or investor appointment, however affect the national interests.
Selection of investor in special cases process.
(i) After the investment policy approval is issued, the competent authority shall prepare a dossier to propose the application of the selection of investors in special cases as prescribed in Article 40.2 of the PPP Law, then submit it to the Prime Minister and the Ministry of Planning and Investment for appraisal.
(ii) Within 45 days from the day receiving the full documents, the Ministry of Planning and Investment shall appraise the investor selection plan and submit a report to the Prime Minister for consideration and decision.
(iii) On the basis of the proposal submitted by the competent authority and the appraisal report submitted by the Ministry of Planning and Investment, the Prime Minister shall consider issuing the in-principal approval on selection of investor in special cases.
(iv) Pursuant to the decision of the Prime Minister, the competent authority shall issue the approval on the selection of investors in special cases and, concurrently, approve the detailed plan.
Reported by Pham Tran Bao Khanh/Nguyen Tuan Phat (Legal Department PECC3)