SOCIALIST REPUBLIC OF VIETNAM Independence - Freedom - Happiness

Transcription

1 GOVERNMENT No ND-CP SOCIALIST REPUBLIC OF VIETNAM Independence - Freedom - Happiness Hanoi, 15 August 1998 (as amended 27 January 1999) DECREE ON INVESTMENT ON BASIS OF BUILD-OPERATE-TRANSFER CONTRACTS, BUILD-TRANSFER-OPERATE CONTRACTS AND BUILD-TRANSFER CONTRACTS APPLICABLE TO FOREIGN INVESTMENT IN VIETNAM Promulgating Regulations on Investment on Basis of Build-Operate-Transfer Contracts, Build-Transfer-Operate Contracts Build-Transfer Contracts Applicable to Foreign Investment in Vietnam The Government Pursuant to the Law on the Organization of the Government dated 30 September 1992; Pursuant to the Law on Foreign Investment in Vietnam passed by the National Assembly on 12 November 1996; In order to encourage investment in construction development of infrastructure facilities in Vietnam; On the proposal of the Minister of Planning Investment; Decrees: I-1155

2 Article 1 To issue with this Decree the Regulations on Investment on the Basis of Build- Operate-Transfer Contracts, Build-Transfer-Operate Contracts Build-Transfer Contracts Applicable to Foreign Investment in Vietnam. Article 2 This Decree shall be of full force effect after fifteen (15) days from the date of its signing shall replace Decree 87-CP of the Government dated 23 November 1993 promulgating the Regulations on Investment in the Form of Build-Operate-Transfer Contracts. Article 3 Ministers, heads of ministerial equivalent bodies Government bodies, chairmen of people s committees of provinces cities under central authority shall be responsible for the implementation of this Decree. On behalf of the Government Prime Minister PHAN VAN KHAI I-1156

3 GOVERNMENT SOCIALIST REPUBLIC OF VIETNAM Independence - Freedom - Happiness REGULATIONS ON INVESTMENT ON BASIS OF BUILD-OPERATE-TRANSFER CONTRACTS, BUILD-TRANSFER-OPERATE CONTRACTS AND BUILD-TRANSFER CONTRACTS APPLICABLE TO FOREIGN INVESTMENT IN VIETNAM (Issued with Decree ND-CP of the Government dated 15 August 1998 amended by Decree ND-CP of the Government dated 27 January 1999) Article 1 CHAPTER I General Provisions In these Regulations, the following terms shall have the meanings ascribed to them hereunder: 1. Build-Operate-Transfer contract (abbreviated in English as BOT) means a written document entered into by an authorized State body of Vietnam a foreign investor(s) for the construction commercial operation of an infrastructure facility (including expansion, upgrading, modernization thereof) for a certain duration in order to recover the invested capital earn reasonable profits; upon the expiry of such duration, the foreign investor(s) shall, without compensation, transfer the facility to the State of Vietnam. 2. Build-Transfer-Operate contract (abbreviated in English as BTO) means a written document entered into by an authorized State body of Vietnam a foreign investor(s) for the construction of an infrastructure facility (including expansion, upgrading, modernization thereof) upon the completion of I-1157

4 which the foreign investor(s) shall transfer the facility to the State of Vietnam. The Government of Vietnam shall grant the investor(s) the right to commercially operate the facility for a certain duration in order to recover the invested capital earn reasonable profits. 3. Build-Transfer contract (abbreviated in English as BT) means a written document entered into by an authorized State body of Vietnam a foreign investor(s) for the construction of an infrastructure facility (including expansion, upgrading, modernization thereof) upon the completion of which the foreign investor(s) shall transfer the facility to the State of Vietnam. The Government of Vietnam shall facilitate the implementation of other project(s) by the foreign investor(s) in order to recover the invested capital earn reasonable profits. 4. BOT, BTO, or BT enterprise (hereinafter referred to as BOT enterprise) means a joint venture enterprise or an enterprise with one hundred (100) per cent foreign owned capital established in accordance with the Law on Foreign Investment in Vietnam for the purpose of implementing a BOT, BTO, or BT contract. 5. State body authorized to enter into a BOT, BTO, or BT contract (hereinafter referred to as authorized State body) means any ministry or Government body or any peoples committee of a province or city under central authority which is appointed by the Prime Minister to enter into perform a BOT, BTO, or BT contract with a foreign investor(s). 6. Foreign investor(s) entering into a BOT, BTO, or BT contract means any foreign organization or individual performing a BOT, BTO, or BT contract (hereinafter referred to as foreign investor) being fully responsible for the undertakings under the BOT, BTO, or BT contract. 7. Sub-contractor means any Vietnamese or foreign contractor which enters into a contract with a BOT enterprise in order to carry out a specific part of a BOT, BTO, or BT project. 8. Sub-contract means any contract entered into by a BOT enterprise a subcontractor in order to implement a specific part of a BOT, BTO, or BT project. 9. Other project(s) means any project(s) attached to a BT contract which the foreign investor is permitted to implement in accordance with the Law on Foreign Investment in Vietnam for the purpose of recovering the capital invested in the BT project. I-1158

5 Article 2 1. The Government of Vietnam encourages foreign organizations individuals to carry out investment on the basis of BOT, BTO, BT contracts in the fields of transportation, production business of electricity, water supply drainage, waste treatment, other areas as determined by the Prime Minister of the Government. 2. The Government of Vietnam shall protect the ownership of invested capital other legitimate interests of foreign organizations individuals carrying out investment on the basis of BOT, BTO, BT contracts shall, at the same time, create favourable conditions simple expedient procedures for the implementation of such projects. 3. The Government shall grant preferential treatment to BOT enterprises sub-contractors in accordance with the provisions of Chapter II of these Regulations. Article 3 1. For the purpose of carrying out a BOT, BTO, or BT project, the foreign investor(s) shall establish a BOT enterprise. 2. A BOT enterprise shall be established commence operation from the date of issuance of the investment licence shall be responsible for complying with the provisions of the investment licence the undertakings made by the investor(s) in the BOT, BTO, or BT contract. 3. The rights obligations of a BOT enterprise the relations between a BOT enterprise the foreign investor(s) with respect to the implementation of a project shall be agreed by the parties in the BOT, BTO, or BT contract. In order to confirm these matters, the parties may agree in the BOT, BTO, or BT contract on the application of one of the following methods provided that all provisions of the BOT, BTO, or BT contract shall be fully complied with: (a) The BOT enterprise shall sign the BOT, BTO, or BT contract together with the foreign investor(s) as a party to the contract; (b) The BOT enterprise shall take over the rights obligations of the foreign investor(s) with respect to the implementation of the project; the taking-over must be legalized by a written document signed by the BOT enterprise, the foreign investor(s) the authorized State body; after approval by the, this document shall be considered as an integral part of the BOT, BTO, or BT contract; I-1159

6 (c) Any other method approved by the. 1 Article 4 CHAPTER II Preferential Treatment Investment Guarantees 1. BOT enterprises shall be subject to the following taxes: Profits tax rate of ten (10) per cent of the profits earned shall apply for the whole duration of implementation of the project. Exemption from profits tax shall be granted for four years commencing from the time when the operations start to earn profits a fifty (50) per cent reduction shall be granted for four subsequent years. In the case of investment in areas where investment is encouraged, profits tax shall be exempted for eight years commencing from the time when the operations start to earn profits. Calculation of the duration of any exemption from or reduction of tax shall be continuous from the first year of profitable operations. Withholding tax rate shall be five per cent of the profits remitted abroad. In addition to the above taxes, BOT enterprises shall pay other taxes in accordance with the laws of Vietnam. 2. Foreign sub-contractors participating in BOT, BTO, BT projects shall pay taxes shall be entitled to incentives in relation to exemption from reduction of taxes in accordance with current provisions applicable to foreign contractors. Vietnamese sub-contractors participating in BOT, BTO, BT projects shall fulfil tax obligations in accordance with current regulations applicable to Vietnamese enterprises. 1 Clause 3 of article 3 was inserted by article 1.1 of Decree ND-CP of the Government dated 27 January I-1160

7 Article 5 1. BOT enterprises sub-contractors shall, for the purpose of carrying out BOT, BTO, BT projects, be exempted from import duties on the following: Equipment machinery imported for the purpose of forming fixed assets (including equipment, machinery spare parts used for surveying, design construction of works); Specialized means of transportation included in a technological process imported for the purpose of forming fixed assets means of transportation used to transport workers (vehicles with twenty four (24) or more seats watercraft); Components, small parts, accessories, spare parts, attachments, moulds kits accompanying the above equipment, machinery specialized other means of transportation referred to in this article, including those used for replacement, warranty or maintenance during the operation of projects; Fuel, raw materials supplies imported for the implementation of BOT, BTO, BT projects, including fuel, raw materials supplies required for production or operation of projects. 2. The exemption from import duties in respect of the above equipment, machinery, means of transportation, raw materials supplies referred to in clause 1 of this article shall also be applicable in the cases of expansion of the scale of a project or change or renovation of technology. 3. The imported goods referred to in clauses 1 2 of this article shall not be permitted to be disposed of or sold in Vietnam. Where these goods are disposed of or sold in the Vietnamese market, the approval of the Ministry of Trade must be obtained the applicable import duties, turnover tax or special sales tax shall be paid in accordance with the laws of Vietnam. 4. In the case of implementation of other projects attached to a BT contract, importation payment of import duties shall be carried out in accordance with article 63 of Decree 12-CP of the Government dated 18 February 1997 making detailed provisions on the implementation of the Law on Foreign Investment in Vietnam article 10 of Decree ND-CP dated 23 January 1998 of the Government on a number of measures for encouragement guarantee of foreign direct investment in Vietnam. 5. Objects of industrial property currently under protection, technical knowhow, technological processes technical services required for I-1161

8 Article 6 implementation of projects shall be exempted from payment of taxes relating to technology transfer. 1. Any assignment of capital of a BOT enterprise shall be carried out in accordance with article 34 of the Law on Foreign Investment in Vietnam article 64 of Decree 12-CP of the Government dated 18 February 1997 making detailed provisions on the implementation of the Law on Foreign Investment in Vietnam. 2. The assignment of capital shall only be effective upon approval of the capital assignment contract by the authorized State body the investment licenceissuing body. Article 7 1. BOT enterprises sub-contractors shall be entitled to open foreign currency account(s), Vietnamese currency account(s) loan account(s) in accordance with article 71 of Decree 12-CP of the Government dated 18 February 1997 making detailed provisions on the implementation of the Law on Foreign Investment in Vietnam relevant legal instruments in relation to foreign exchange control. 2. The State Bank of Vietnam shall assure the conversion of Vietnamese dong earned by BOT enterprises through the implementation of BOT, BTO, other projects into foreign currency in order to meet the requirements for business operations, repayment of principal payment of interest on loans, remittance of profits capital abroad. BOT enterprises shall be entitled to use lawful income in Vietnamese dong resulting from the implementation of BOT, BTO, BT projects for the purpose of purchasing goods for export or for processing for direct export in accordance with the regulations of the Ministry of Trade in order to generate foreign currency sources to meet the requirements for business operations of BOT enterprises. I-1162

9 Article 8 1. During the implementation of a project, a BOT enterprise shall be permitted to pledge or mortgage the following assets in accordance with the laws of Vietnam: (a) Equipment, plant, architectural works real estate properties which have been purchased or constructed with the invested capital of the BOT enterprise; (b) Other assets owned by the BOT enterprise; (c) Value of l use rights in accordance with the laws of Vietnam; (d) Property rights of the BOT enterprise. 2. Any pledge or mortgage by a BOT enterprise must be approved by the authorized State body, shall not be prejudicial to the implementation of the objectives, time schedule operation of the project as stipulated in the contract shall be in accordance with the laws of Vietnam. 3. Deeds of mortgage pledge must be made in accordance with the laws of Vietnam copies thereof must be sent to the authorized State body. Article 9 1. The Government shall assure that BOT enterprises are permitted to use l, roads other public support facilities for the purpose of implementation of BOT, BTO, BT projects. 2. BOT enterprises shall be exempted from payment of l rent for the duration of implementation of projects. 3. People s committees of provinces cities under central authority in which investment projects are located shall be responsible for making compensation, carrying out site clearance completing the procedures for allocation of l to BOT enterprises in accordance with law within the undertaken time-limit. All costs of compensation site clearance shall be paid by the investor(s) included in total invested capital, unless otherwise stipulated in the BOT, BTO, or BT contract. I-1163

10 Article Vietnamese enterprises shall participate in BOT, BTO, BT projects subject to the approval of the authorized State body. 2. Where necessary, the Government shall, depending on the nature of each project, authorize the authorized State body to act on behalf of the Government as a guarantor for the fulfilment of undertakings relating to financial obligations by Vietnamese enterprises participating in the implementation of a project as defined in a BOT, BTO, or BT contract for the obligations of Vietnamese enterprises with respect to sale of raw materials purchase of main products or services for the purpose of carrying out a BOT, BTO, or BT contract. Article 11 During the implementation of projects, all organizations individuals shall comply with applicable regulations on foreign exchange control, export import, technology transfer, environment, labour relations, accounting, statistics, entry exit other relevant provisions of the laws of Vietnam. CHAPTER III Methods of Implementation of BOT, BTO, BT Projects Article Based on the planning orientation of social economic development in each period, the shall be responsible for co-ordinating with ministries, sectors people's committees of provinces cities under central authority to submit to the Prime Minister for approval the list of investment projects on the basis of BOT, BTO, BT contracts. 2. The Prime Minister may approve BOT, BTO, BT contracts not included in the published list after consulting relevant ministries, sectors people's committees of provinces cities under central authority in which the projects are proposed to be implemented. 3. In the case of an investment project on the basis of a BOT, BTO, or BT contract which is submitted to the Prime Minister as stipulated in clauses 1 2 of this article, its necessity, location, designed capacity, size of proposed invested capital the recommendations on the authorized State body methods of selection of the foreign investor(s) to enter into a BOT, BTO, or BT contract shall be specified. I-1164

11 Article On the basis of the approved list of BOT, BTO, BT projects the method of selection of the foreign investor(s) to enter into a BOT, BTO, or BT contract, the authorized State body shall direct the preparation of a prefeasibility study which shall be used as a basis for preparation of files for selection of the foreign investor(s). The authorized State body shall consider approve the pre-feasibility study. The costs of preparation of the pre-feasibility study shall be covered by the approved budget of the authorized State body as stipulated. If the project is implemented, the costs of preparation of the pre-feasibility study shall be charged to the invested capital of the project the BOT enterprise shall be responsible for making refund to the State Budget. 2. Foreign investors shall prepare submit pre-feasibility studies of the BOT, BTO, or BT projects referred to in clause 2 of article 12 to the authorized State body for consideration approval. Where a pre-feasibility study is adopted by the authorized State body, the foreign investor(s) shall be permitted to prepare submit an application file for an investment licence. Article Procedures methods of selection of the foreign investor(s) to enter into BOT, BTO, or BT contracts shall be carried out in accordance with the laws of Vietnam in relation to tendering. 2. The results of the selection of the foreign investor(s) to enter into a BOT, BTO, or BT contract must be approved by the Prime Minister of the Government. Article Upon approval of the results of selection of the foreign investor(s) to enter into a BOT, BTO, or BT contract by the Prime Minister, the selected foreign investor(s) shall prepare a feasibility study which shall be submitted to the authorized State body. 2. The authorized State body shall co-ordinate with relevant ministries, sectors people s committees of provinces cities under central authority in the consideration approval of feasibility studies. In cases where there is any difference in opinions or any issue beyond its authority, the authorized State body shall report to the Prime Minister of the Government for decision. I-1165

12 Article The authorized State body shall be responsible for negotiating entering into a BOT, BTO, or BT contract with the selected foreign investor(s). With respect to important projects decided by the Government, the authorized State body shall be responsible for submitting the principles serving as the basis for negotiating entering into a BOT, BTO, or BT contract to the Government for approval. 2. A draft BOT, BTO, or BT contract shall, after having been negotiated, agreed initialled by the parties, together with other documents relating to the application for an investment licence, be submitted to the Ministry of Planning Investment for evaluation submission to the Prime Minister for consideration decision. A BOT, BTO, or BT contract shall be officially signed only upon the approval of the Prime Minister. Article An application file for an investment licence shall comprise: Application for investment; Initialled BOT, BTO, or BT contract; Joint venture contract (in the case where the BOT enterprise is a joint venture enterprise); Charter of the BOT enterprise; Feasibility study; Initialled contract or heads of agreement on purchase of materials or sale of products (if any); Documents evidencing the legal status financial sting of the investor(s). 2. In addition to the above, with respect to BT projects, documents regarding other projects as required by applicable regulations shall also be submitted. 3. A BOT, BTO, or BT contract contracts for purchase of materials or sale of products (if any) shall be sent to the after being officially signed. I-1166

13 Article The shall issue an investment licence to a BOT, BTO, or BT project within a period of fifteen (15) days from the date on which the Prime Minister approves the BOT, BTO, or BT project. 2. The investment licence shall include the following main contents: Article 19 Main terms conditions of the contract; Amount of invested capital, objectives duration of operation of the project; Requirements of design, technical conditions conditions for normal operation of the project upon being transferred to the State of Vietnam; Financial tax obligations; Right to use l support facilities; Conditions regarding environmental protection; Principles for determining adjusting prices other charges; Provisions on the conversion of Vietnamese currency into foreign currencies; Importation or exportation of equipment, machinery goods; Rights conditions for operating the projects with respect to BOT BTO projects; for operating other projects with respect to BT projects; Main principles for evaluation of assets upon transfer; Undertakings of the Government relevant State bodies. 1. BOT enterprises shall prepare submit a technical design to the authorized State body. The authorized State body shall be responsible for co-ordinating with the Ministry of Construction relevant ministries, sectors peoples committees of provinces cities under central authority to carry out evaluation of technical designs of projects prior to implementation. Upon approval of the technical design of a project, the BOT enterprise shall be permitted to commence construction of the project. I-1167

14 2. Investors BOT enterprises shall be entitled to select sub-contractors or organize a tender in order to implement BOT, BTO, or BT projects shall be responsible for submitting a report on the selection of sub-contractors or the tendering results to the authorized State body. 3. After signing sub-contracts with BOT enterprises, sub-contractors must register their operations with the authorized State body. Article The principles for determining prices, rates, fees other charges of BOT BTO projects must be provided for in BOT BTO contracts. 2. Increases in prices, fees other charges must be agreed provided for in BOT or BTO contracts. Any changes in prices or fees or other charges shall be subject to thirty (30) days notice to the authorized State body. Article 21 Any changes in prices, fees or other charges other than those contemplated agreed in contracts shall be subject to the approval of the authorized State body prior to implementation. 1. The duration of a BOT, BTO, or BT contract, the time-limit for transfer of a BOT, BTO, or BT project the duration of operation of a BTO project shall be agreed by the parties specified in the investment licence in accordance with the laws in relation to foreign investment in Vietnam. 2. Upon the expiry of the duration of operation of a BOT project, the foreign investor(s) shall transfer the project to the State of Vietnam without compensation. With respect to a BTO or BT project, the foreign investor(s) shall transfer the project to the State of Vietnam in accordance with the terms conditions stipulated in the BTO or BT contract upon completion of construction. 3. The authorized State body shall take over BOT, BTO, or BT projects transferred in accordance with articles of these Regulations. Article 22 Upon its transfer to the State of Vietnam, the authorized State body the BOT enterprise must compare the project against the terms conditions stipulated in the investment licence the BOT, BTO, or BT contract. The file for h-over of the project shall include the following main contents: I-1168

15 Condition of the project upon transfer; List of assets transferred, including documents relating to surveys, designs, construction, installation, operation, maintenance management of the project; Written report on evaluation of the value quality of the project transferred; Responsibilities of the parties for the continued operation of the project transferred; Duration, conditions for maintenance warranty of the project after being transferred; Other necessary contracts conditions for the maintenance operation of the project after being transferred. Article 23 Before a BOT, BTO, or BT project is transferred, the BOT enterprise must carry out any maintenance, repair necessary technical activities to transfer the project as agreed in the BOT, BTO, or BT contract. The authorized State body shall only take over the project in accordance with the terms conditions stipulated in the BOT, BTO, or BT contract the investment licence. Article 24 CHAPTER IV BOT, BTO, BT Contracts Sub-Contracts 1. A BOT, BTO, or BT contract shall include the following main contents: Nationalities, addresses authorized representatives of the parties to the contract; Objectives scope of operations; Investment capital, schedule of implementation; I-1169

16 Capacity, technology equipment; requirement for designs technical stards of the project; quality stards control supervision of the quality of the project; Provisions regarding environmental protection; Terms conditions relating to the use of l, infrastructure support facilities necessary for construction operation; Schedule for construction of the project, the duration of operation of the BOT enterprise the time at which the project shall be transferred; Rights obligations of the parties; undertakings to provide guarantees to share risks between the parties; Provisions regarding prices, fees other charges; Obligation to maintain normal operations of the project; Consultancy evaluation of designs, equipment, construction, acceptance, operation, maintenance; Technical conditions, status of operation, quality of the project upon transfer; principles used for determination of the value of the project order of transfer of the project; Validity of the contract circumstances of early termination of the contract; provisions regarding assignment of the contract; Body method for resolution of disputes between parties to the contract; distribution of risks between the BOT enterprise Government bodies; Dealing with breaches by the parties causing failure to perform the terms conditions of the contract; Events of force majeure principles for resolution; Provisions regarding the assistance undertakings of the Government; Conditions for implementation of other projects in the case of a BT contract. The parties may agree in the BOT, BTO, or BT contract any other material contents, including the right of the lender(s) to take over a part or all of the rights obligations of the BOT enterprise in order to implement the project (hereinafter referred to as project step-in right) in the case where the BOT enterprise or the foreign investor(s) fails to perform its (their) obligations in accordance with the contract or loan agreement(s) provided that the lender(s) must fully perform all of the respective obligations of the BOT enterprise or the foreign investor(s) as stipulated in the BOT, BTO, or BT contract the I-1170

17 investment licence. The conditions, procedures substance of the project step-in right of the lender(s) must be stipulated in the loan agreement(s), security agreement(s) or other agreements signed between the BOT enterprise /or the foreign investor(s) the lender(s) must be approved by the authorized State body For the purpose of carrying out a BOT, BTO, or BT project, a BOT enterprise may enter into contracts for l lease, construction, installation of machinery, equipment, consultancy services, inspection, purchase of materials, sale of main products services, provision of technical services, loans, pledge or mortgage of assets other contracts in accordance with the provisions of the law of Vietnam The parties signing a BOT, BTO, or BT contract the parties signing contracts of which the obligations to perform those contracts are guaranteed by an authorized State body of Vietnam as provided for in clause 2 of article 10 of these Regulations may agree in such contracts on the application of foreign laws provided that such agreement on the selection of foreign laws is not contrary to the provisions of the law of Vietnam is approved by the Ministry of Justice. 4 Article Any disputes arising between the authorized State body the foreign investor(s) or the BOT enterprise during the implementation of a BOT, BTO, or BT contract a guarantee contract provided for in clause 2 of article 10 of these Regulations shall be first resolved through negotiation conciliation. Where such disputes fail to be resolved through negotiation conciliation, the parties may refer the dispute for resolution by an arbitration tribunal established by agreement of the parties Any disputes between the parties in a BOT enterprise arising during the implementation of the contract shall be resolved in accordance with clause 1 of article 102 of Decree 12-CP of the Government dated 18 December Final paragraph of clause 1 of article 24 was inserted by article 1.2 of Decree ND-CP of the Government dated 27 January Clause 2 of article 24 was amended by article 1.3 of Decree ND-CP of the Government dated 27 January Clause 3 of article 24 was amended by article 1.3 of Decree ND-CP of the Government dated 27 January Clause 1 of article 25 was amended by article 1.4 of Decree ND-CP of the Government dated 27 January I-1171

18 making detailed provisions on the implementation of the Law on Foreign Investment in Vietnam. 3. Any disputes arising between a BOT enterprise any foreign organization or individual during the implementation of a project between a BOT enterprise any Vietnamese economic organization involved in the implementation of a project, of which the obligations to perform a contract are guaranteed by the authorized State body of Vietnam in accordance with the provisions in clause 2 of article 10 of these Regulations, shall be first resolved through negotiation conciliation. Where such disputes fail to be resolved through negotiation conciliation, the parties may refer the dispute for resolution by a Vietnamese arbitration organization, an arbitration tribunal established by agreement of the parties or arbitration established operating in a third country. Other disputes arising between a BOT enterprise any Vietnamese economic organization during the implementation of a project shall be resolved in accordance with the provisions in clause 2 of article 102 of Decree 12-CP of the Government dated 18 February 1997 making detailed provisions on the implementation of the Law on Foreign Investment of Vietnam The enforcement of arbitration decisions shall be carried out in accordance with the laws of Vietnam or international treaties to which the Socialist Republic of Vietnam is a party or signatory. Article 26 CHAPTER V Rights Obligations of Authorized State Bodies An authorized State body shall have the following powers: To determine economic technical targets of projects to organize the consideration approval of pre-feasibility studies feasibility studies; To negotiate, agree decide on the contents of BOT, BTO, BT contracts; 6 Clause 3 of article 25 was amended by article 1.4 of Decree ND-CP of the Government dated 27 January I-1172

19 To co-ordinate with the Ministry of Construction, other ministries, sectors people s committees of provinces cities under central authority in the consideration evaluation of technical designs of projects; To organize the supervision of construction participate in the acceptance of quality of construction works during the course of construction; To approve contracts for purchase of materials sale of main products services signed by BOT enterprises Vietnamese specialized economic organizations in cases where such contracts require a guarantee as referred to in clause 2 of article 10 of these Regulations; To supervise the parties in the performance of their obligations undertaken in BOT, BTO, BT contracts sub-contracts; To take over the project transferred as stipulated. Article 27 An authorized State body shall have the following responsibilities: To provide support to foreign investors in the preparation implementation of BOT, BTO, BT projects; To provide support to BOT enterprises in the completion of procedures for preparation for investment, construction operation (if any) in accordance with BOT, BTO, BT contracts sub-contracts; To assume responsibility for, or co-ordinate with other State bodies in the consideration resolution of, legitimate requirements of BOT enterprises during the implementation of BOT, BTO, BT projects; To perform the obligations undertaken in BOT, BTO, BT contracts; To perform other duties related to the management administration of activities under BOT, BTO, BT projects in accordance with law. Article 28 All costs relating to the exercise of powers performance of responsibilities of the authorized State body referred to in articles of these Regulations shall be charged to the State Budget on the basis of proposals of the authorized State body the Ministry of Finance. I-1173

20 CHAPTER VI Implementing Provisions Article 29 Ministers, head of ministerial equivalent bodies, heads of Government bodies, chairmen of people's committees of provinces cities under central authority shall be responsible for the implementation of these Regulations. On behalf of the Government Prime Minister PHAN VAN KHAI I-1174