USE AT LEAST 2 METHODS OF ASSETS APPRAISAL FOR AUCTION OF THE RIGHT TO OPERATE ROAD INFRASTRUCTURE
On December 03, 2019, the Ministry of Finance promulgates the Circular No. 86/2019/TT-BTC guiding the determination of the reserve price in auction for lease or definite-term transfer of the right to operate road infrastructure assets invested and managed by the State.
Accordingly, determining the reserve price in auction must ensure reasonable and valid actual cost recovery to form and manage assets, in accordance with the State's socio-economic development policies and guidelines in each period. In addition, the reserve price must be compatible with the market price of assets of the same type or having the same technical standards and comply with the regulations, standards, expenditure norms and economic-technical norms promulgated by competent State agencies.
The reserve price in auction for lease of the right to operate road infrastructure assets is the lowest initial price in auction. The reserve price shall be determined on the basis of the market rent price of assets of the same type or estimated revenue and expenses derived from the operation of assets during the leasing term in case there is no asset of the same type for comparison.
Each asset must be applied with at least 02 different methods in the system of Vietnam’s valuation standards. When applying multiple pricing methods and valuation methods, agencies and units in charge of determining the reserve price shall assess and clearly state the major methods and the methods used for testing and comparing results, thus proposing the reasonable reserve price.
This Circular takes effect from January 20, 2020.
