CIRCULAR 09/2022/TT-BGTVT GUIDING ON THE ASSESSMENT METHODS AND CRITERIA OF BID DOSSIER FOR THE SELECTION OF INVESTORS EXECUTING PUBLIC-PRIVATE PARTNERSHIP PROJECTS

On June 22, 2022, the Ministry of Transport issued Circular 09/2022/TT-BGTVT (“Circular 09”) guiding a number of contents on methods and criteria for evaluating bid dossiers for the selection of investors executing public-private partnership projects. Specifically:

Evaluation of capacity and experience: Scoring method on a scale of 100 or 1,000, in which, the minimum score rate to meet the requirements is no less than 60% of the total score and the minimum score rate for each basic requirement is no less than 50% of the maximum score of that content. The evaluation is based on equity; total value of equity and loan capital that investors are able to arrange; and the total number of implemented projects of the investors.

Technical evaluation:

1. The technical evaluation of the application dossiers shall be carried out for projects applying the form of open bidding and competitive negotiation according to Article 38.1 of the Law on Public – Private Partnership Investment (“PPP Law”).
2. Evaluation method: score on a scale of 100 or 1,000 or pass or fail assessment. Specifically:

• In case of scoring method: The minimum rate to meet the requirements is no less than 70% of the total score and the score for each requirement on quality and volume; operation, management, business, maintenance, maintenance; environment and safety… is no less than 60% of the maximum score for that content.
• In case of pass and fail assessment method: Evaluation criteria are general evaluation standards, including: basic detailed standards (accounting for no less than 70% of the total number of detailed standards in that general criteria) and non-essential detail standards (accounting for no more than 30% of the total number of detailed standards in that general criteria). In which, the general criteria is assessed as passed when all the basic detailed standards are evaluated as passed and the non-basic detailed standards are evaluated as passed or acceptable.

    iii. The evaluation is based on various criteria such as: standards on technique, technology, construction quality, and infrastructure systems; standards on organization plans for the operation, management and business, and maintenance; standards on plans for environmental protection and safety; etc. In which, investors must clarify the contents of quality standards, availability and practical applicability of technology; technical and technological risks (if any); manners to ensure the stable and standard supply of public services; etc.

     iv. Investors who meet the technical requirements may be considered and evaluated on financial-commercial proposals.

Financial – commercial assessment: For a valid bid dossiers, based on the size and nature of the project, the party calling for bid must determine one of the following methods to compare and rank investors satisfying the financial and commercial requirements:

1. The method of comparison and ranking based on the standard of state supporting capital for the construction, infrastructure systems (VGF) (not applicable to PPP projects having sub-projects using public investment capital according to Article 70.5(a) of the PPP Law), other contents such as redemption period, product price and fees and other relevant factors as clearly defined in the bidding documents.
2. The method of comparison and ranking based on the standards of price, fees of public products and services, other contents such as standards for assets and services belonging to the project, contract performance time and other relevant factors as clearly identified in the bidding documents.
3. The method of comparison and ranking based on the standards of social benefits, state interests, and other relevant contents which as clearly defined in the bidding documents.
4. The method of comparison and ranking based on the combined criteria in accordance with the provisions of Appendix III attached to Circular 09.

Notes when evaluating financial - commercial:

• Through evaluation methods, the investor reaching the most favorable proposal will rank first and be recommended to win the bid.
• In case an investor is eligible for incentives, the relevant contents must be calculated according to the evaluation method used before performing the investor rating step as prescribed.
• In case the results of financial-commercial evaluation among investors are equal, the investor rating will rely on the results of technical evaluation.

These are completely new regulations compared to the past. Accordingly, although the Ministry of Planning and Investment has also adopted Circular 09/2021/TT-BKHDT guiding the selection of investors to implement PPP projects and investment projects using land, however, this is just general regulations. Circular 09 of the Ministry of Transport supplemented specialized guidelines for the selection of investors to implement these projects.

Circular 09 shall take effect from October 1, 2022.