UNDERSTANDING INVESTMENT PROJECT CONTRACTS

Legal basis:

• Law on Bidding 2023

     1. Content of  investment project contract 

•  Particulars of the contracting parties, effective date and duration of the contract;
• Details of the investment project, including: objectives, location, and execution schedule; scale and total investment; conditions for use of land and other resources (if any); compensation and relocation measures and requirements, and construction of auxiliary works (if any); safety and environmental protection requirements; force majeure events and actions taken;
• Responsibility to follow compensation and relocation procedures and organize construction of auxiliary works (if any); allocation or lease of land (if any);
• The investor’s obligations to fulfill commitments proposed in their bid; establishment of enterprise in charge of managing the investment project (if any);
• Performance security; rules and conditions for modification and termination of contract; transfer of rights and obligations by the parties;
• Governing law and dispute settlement mechanism.

     2. Investment project contract documents

•  Contract agreement; 
•  Contract appendices (if any);
• Contract negotiation and completion record;
• Decision on approval of investor selection result;
• The selected investor’s bid and clarifications thereof;
• Bidding documents and addenda thereto;
• Other relevant documents.

     3. Duration of investment project contract

• Duration of an investment project contract is the period specified in the contract signed by the parties.

• Duration of an investment project contract begins on the effective date of the contract until the investor fulfills their commitments specified in their bid and other obligations as agreed upon by the parties in the contract.
• When the contract expires, the investor shall execute the investment project in accordance with regulations of the Law on investment and relevant laws.