Hotline:(+84) 898 898 688
You can read more information at Vietnam Real Estate Investment
Corporations keep doing wrong things and then calling for help
Through the inspection work, the Government Inspectorate (TTCP) has “pointed out” a series of signs of loosening management, resulting in loss of property through the approval of reciprocal land funds for enterprises implementing BT projects… For example, by the time of inspection, only one out of 15 projects was invested under BT contracts in the selected sectors in the form of bidding, the remaining projects were done by contractor designation.
When selecting investors for BT projects, the financial capacity of enterprises to deploy the project on schedule is always considered an important condition, but this is not seriously implemented by Hanoi, leading to the signing with some investors do not guarantee financial capacity…
Professor Dang Hung Vo – former Deputy Minister of MONRE analysis, for the BT projects, usually, the local government must stand in the position of the issuer for the business to participate in bidding to select partners in accordance; however, in Hanoi, the title role has not been fully implemented.
“When the BT project is self-funded by the project, the estimate is submitted to the city for approval, after which the contractor chooses the construction contract itself. In other words, when the policy is being driven by private interests, businesses only care about economic benefits, they will not care about other community interests…” said Vo.
Prof. Vo said that Hanoi’s selection of project implementation business by contractor design has reduced the competitiveness. Meanwhile, the reciprocal land fund paid to enterprises is often larger, so that causing the loss of state assets of trillions.
According to Vo, the conclusions of the PM indicate that up to 14/15 BT projects to select investors under the designation of contractors instead of open bidding will naturally lead to mistakes in approving the project and in contract supervision. The signing of BT contracts is only an agreement between state agencies and enterprises.
“Appointment of contractors is a direct result of the leakage and the potential for corruption. The contract value and reciprocal terms will be at the hands of some government officials and enterprises, so easily lead to errors that cause losses of trillions of dong…” Vo said.
See more information at Vietnam Real Estate Market
Mr. Vo said that all the violations in BT projects have just been pointed out clearly reflects the situation of loosening management for the project in Hanoi for a long time. Many investors have been “pointed out” not qualified financially but was selected to sign contracts such as Tasco Joint Stock Company despite limited financial capacity was selected to implement the project Le Duc Tho – Xuan Phuong street; Owner of the road project surrounding the memorial site of Chu Van An – Bitexco Company; Owner of the southern route of the old Ha Tay province.
During the implementation of the BT contract, some investment contents, total investment and cost estimates of some BT projects have been appraised and approved by the Hanoi People’s Committee and its subordinate bodies. The prescribed regime increases the total investment in the project, affecting the calculation and arrangement of reciprocal land allocation plans for determining the land use levy.
You are reading the article “INVESTMENT IN THE FORM OF BT: MANY DISADVANTAGES” in the section “Real Estate News” on the website: www.realestatevietnam.com.vn
All information sharing, feedback please email to email@example.com, Hotline (+84) 898 898 688 (24/7).
Thank you for visiting our website!