HoREA proposed to use the land fund that has not yet cleared the ground to pay for the BT project
The association proposed to use only the land fund that has not been cleared ground to pay investors for BT projects. Do not use the cleared land, office to pay investors for BT projects because there is a potential risk of losing the State budget.
A BT project is implemented. Photo: Pham Hung
Ho Chi Minh City Real Estate Association (HoREA) has just proposed to the Prime Minister and the People’s Committee of Ho Chi Minh City on a number of mechanisms and policies to restart projects in the form of build – transfer (BT).
In particular, the Association proposed to use only the land fund that has not yet cleared the ground to pay investors for BT projects. The condition is that the investor advances the compensation and ground clearance fund according to the compensation and ground clearance plan approved by a competent state agency.
HoREA recognizes that site clearance is the hardest work, takes the most time and easily leads to large lawsuits, so all investors of BT projects are very supportive and ready to pay in advance. However, this does not change the nature of the “other project” that makes payment to a BT project investor as “projects using land”. If it is a “project using land”, the investor selection bidding method must be conducted according to the provisions of the Housing Law and the Bidding Law.
Therefore, in a tender package for selecting an investor for a BT project, paying with the land fund that has not yet cleared the ground and if the investor of a BT project does “other projects”, they must bid for a BT project, bidding period “other projects” in the same tender. The condition is that the investor advances the compensation and ground clearance fund.
The Association proposes not to use the land fund which has been cleared ground, offices to pay investors for BT projects, because of the potential risk of losing the state budget, because it is difficult to ensure the horizontal principle price at market price. The principle of equal price can only be ensured when conducting an auction of land use rights for the cleared public land fund, office. If the method of auctioning public land fund, which has cleared the ground and the office, will create an extremely large source of state budget revenue, to create capital for infrastructure development.
The Law on Investment 2020 decides to stop implementing BT projects that have not been approved for investment policy, from August 15 and stop implementing new BT projects, from the effective date of the Investment Law (January 1/1). 2021). HoREA believes that regulations are necessary but should only stop in the period 2020 – 2022 to build a comprehensive mechanism, policies and laws. First of all, HoREA suggests to focus on reviewing, amending and supplementing the Law on management and use of public assets; Law on Public Investment; Law on State Budget; Law on Bidding; The Property Auction Law, Price Law aims to seal the loopholes to ensure the eligibility for restarting BT projects.
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