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HoREA continues concerning about BT project turning into two-side

real estate in HCMC

HCMC Real Estate Association Ho Chi Minh City (HoREA) said that the results of BT-built projects can not be denied; Public Private Partnership (PPP); Build-operate-transfer (BOT) … However, there are also many alarming risks, especially group benefits.

According HoREA, in HCMC. In the period of 2011-2015, the budget for development investment is facing many difficulties, accounting for only 7.6% of total social investment capital (lower than the period 2006-2010 reached 12 %, which is the reason that the percentage of city retained from the budget revenue in the area has been reduced, so far only 18%), but has been offset by the social capital reached rate 31, 7% GRDP.

real estate in HCMC
HoREA continues concerning about BT project turning into two-side

This achievement has transformed one step of technical infrastructure, urban transport infrastructure and contributed significantly to the development of the city. Recently, the city has announced 133 projects calling for investment in the form of socialization in the form of BT, PPP, most of which are technical infrastructure projects, traffic, embellishment urban The renovation project in the area of ​​Nam Kenhoi, District 8 has total investment capital of over VND 14,000 billion, with a land fund of around 28 hectares; The project of Thu Thiem bridge 4 in Thu Thiem urban area has a total investment of over VND 5,000 billion, expected reciprocal of 16 land areas.

Besides the positive side, there are still limited aspects such as: There are many BT, PPP, BOT projects are appointed contractors, investors; Equity capital of many contractors and investors accounts for only about 10%, the remaining about 90% of capital construction investment is bank loans, so there are potential risks and can affect the progress of completion construction.

The Association found that the implementation of the method of appointing contractors, investors in the form of BT, PPP, BOT quite popular in the past, can lead to negative results, group interests, impact on the environment. business schools, and social benefits.

In particular, the appointment has created conditions for contractors and investors to benefit “double” twice: When receiving construction contract (head B – Building: Construction) and when investing in business areas reciprocal land in prime locations and enhanced transport infrastructure (T-Transfer: Transfer). By designating the contractor, investors do not have to go through open bidding procedures. As a result, they receive a high bid price while the counterpart is undervalued.

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According to HoREA, the nomination procedure has led to the transparency, fairness and fair competition of the business environment, which has negatively impacted the confidence of domestic and foreign investors. This may also cause damage to the state budget (because of the reciprocal land allocated to the contractor, which is also public property, which is also the budget), and causes concern to society.

Therefore, the Association proposes to limit the appointment of contractors, appoint investors in the above cases, and only appoint contractors, investors in special cases under Article 26 of the Bidding Law, in order to create a transparent business environment for investment, fairness and fair competition; strengthening trust for investors; Benefit the state budget and strengthen the consensus in society.

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