Selectionof investors for projects with land use

Thu, 28 Mar 2019 11:24:00  |  Print  |  Email   Share:

(Chinhphu.vn) – According to Mr. Trung, Phu Yen Province is implementing the selection of investors for investment projects with land use according to the Decree No. 30/2015 / ND-CP dated February 14,  2015 of the Government and the Circular No. 16/2016 / TT-BKHĐT dated December 16, 2016 of the Ministry of Planning and Investment.

In the provisions of the Decree No. 30/2015 / ND-CP and the Circular No. 16/2016 / TT-BKHĐT regulating the evaluation of investment efficiency standards (B) = M2 + M3,in which:

- M2 is the value of compensation and clearance proposed by investors.

- M3 is the value paid to the State budget proposed by investors.

However, the Decree No. 30/2015 / ND-CP and the Circular No. 16/2016 / TT-BKHĐT do not stipulate which criterias​​are based on by M3 values and what payableamounts to theState budgetare included is what the procuring entity has basis for determining regulations.

Through the receiving and responding tobusinesses' recommendations, Mr. Nguyen Duy Trung would like to ask, what the payable amounts to the State budget are included, so that the procuringentity has a basis to determine when making the bidding documents? Do this investment and M3 value include land use fees and land rental?

Regarding this issue,The Ministry of Planning and Investment has the following opinions:

In Section 5, Chapter III Investors' instruction sheet Form of bidding documents issued together with the Ministry of Planning and Investment's Circular No. 16/2016 / TT-BKHĐT dated December 16, 2016, and the social benefits method as well as State benefits are used to assess investors to propose a method to implement the project with the most effective investment. The investment efficiency is assessed through the following criteria:

- Investors with proposed prices (A) are not lower than floor prices;

- The value of compensation and clearance (M2) is not lower than M2;

- The proposed value of the State budget (M3) is not lower than M3;

- The largest investment effeciency (B) is ranked first and invited into preliminary contract negotiations.

According to the investor's instruction sheet (Chapter II, Section 1.2), the form of bidding documents issued together with the Ministry of Planning and Investment's Circular No. 16/2016 / TT-BKHĐT dated December 16, 2016, the value of the minimum payment to the State budget (M3) shall be determined by the procuring entity based on the commercial advantages of the land plot, the future land fund for project execution or the calculation of the value of the land plots lthat have location and similarsubstance to the project land.

In particular, M3 is the minimum value that investors must commit to unconditionally submit to the State budget. This value is independent of the land use fee and land rent that the investor must pay (determined at the time of actual land allocation or land lease) in accordance with the land law.

The determination of M3 according to the above provisions may consult the guidance of the State financial management agency in order to apply the determination of land price adjustment coefficients when the urban land areas and transport hubs, concentrated residential areas have advantages and profitability in land auctions (in Article 1, Clause 3 of the Circular No. 332/2016 / TT- BTC dated  December 26, 2016 of the Ministry of Finance).

This content is particularly necessary when applying the form of contractor appointment to select investors. At that time, the advisory body in the field of land finance expected the advantage value of the land in case only one investor participated in the selection process, there was no competition in order to avoid losses to State budget.

By: Online Newspaper of the Government / Translator: HaiYen-Bizic

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