Procedures for bidding to select investors to implement projects using land

Bidding to select investors to implement projects using land is an important legal process in land management and use. This process applies to real estate investment and business projects that need to use land funds. This article will analyze in detail the process of bidding to select investors to implement projects using land.

Basis for implementing bidding procedures to select investors

Law on Bidding 2023 takes effect from January 1, 2024. However, the Land Law 2024 will only take effect from August 1, 2024. Therefore, the basis for applying the basic bidding process will be different. Clause 3, Article 96 of the Law on Bidding 2023 has regulations to solve this problem. Accordingly, the application of the legal framework governing investor selection bidding procedures for projects using land from the effective date of the 2023 Bidding Law is as follows:

• From January 1, 2024 to August 1, 2024, bidding procedures will still follow the Law on Bidding 2023.
• From August 1, 2024, bidding procedures will follow the Law on Bidding 2023 and the Land Law 2024.

Conditions for bidding to select investors to implement projects using land

According to the provisions of Clauses 3 and 4, Article 126 of the Land Law 2024, Clause 5, Article 1 of Decree 23/2024/ND-CP, projects using land that conduct bidding to select contractors must meet the conditions after:

• Belonging to the list of land areas for bidding for investment projects using land decided by the Provincial People’s Council;
• Have a detailed plan or a 1/2000 scale zoning plan approved by a competent authority;
• Belongs to the case where the State recovers land according to the provisions of land law;
• In case the land area where the project is to be implemented has land managed by the State according to the provisions of land law, the State will recover land for the entire project area (including the land area owned by the State). State management within the scope of the project).
• Not eligible for auction of land use rights according to the provisions of land law, not eligible for auction of public assets according to the provisions of law on management and use of public assets.
• Other conditions according to the provisions of law on industry and field management for each specific project.

The process of land allocation is through auction of land use rights

Note when carrying out bidding procedures

Depending on each case, the investor selection bidding process will have differences in the steps taken.

Case 1: For projects applying open bidding, limited bidding according to the one-stage, one-envelope method and projects applying open bidding according to the one-stage, two-envelope method The application and implementation process will include the following basic steps:

• Announcing business investment projects;
• Prepare bidding for investor selection;
• Organize bidding to select investors;
• Evaluate bid documents;
• Submit, appraise, approve and publicize investor selection results;
• Negotiate, finalize and sign contracts.

Case 2: For projects applying open bidding according to the two-phase, one-envelope method

• Announcing business investment projects;
• Prepare bidding to select investors for phase one;
• Organize bidding to select investors for phase one;
• Prepare and organize bidding to select investors for phase two;
• Evaluate bid documents for phase two;
• Submit, appraise, approve, and publicize investor selection results;
• Negotiate, finalize and sign contracts.

Case 3: For projects where the number of interested investors must be determined and projects in special cases, the following steps will be carried out:

• Announcing business investment projects;
• Inviting attention;

In case there are 02 or more investors interested in registering to implement the project and the project applies open bidding according to the one-phase, one-envelope method, the following steps will be carried out:

• Prepare bidding for investor selection;
• Organize bidding to select investors;
• Evaluate bid documents;
• Submit, appraise, approve and publicize investor selection results;
• Negotiate, finalize and sign contracts.

For projects that are bidding in the form of open bidding using the two-stage, one-envelope method, the process involves the following stages:

• Prepare bidding to select investors for phase one;
• Organize bidding to select investors for phase one;
• Prepare and organize bidding to select investors for phase two;
• Evaluate bid documents for phase two;
• Submit, appraise, approve, and publicize investor selection results;
• Negotiate, finalize and sign contracts.

Steps to carry out bidding to select investors

Below are detailed and clear steps to carry out investor selection bidding.

Step 1: Announce the project

Based on the list of land areas for bidding to select investors to implement investment projects using land decided by the Provincial People’s Council, the Provincial People’s Committee shall make the announcement within the time limit. 07 working days from the date of decision by the Provincial People’s Council as a basis for competent state agencies or investors to prepare documents requesting approval of investment policies.

In particular, project announcement procedures are carried out synchronously with procedures for deciding investment policies according to the law on investment, serving as a basis for competent agencies to organize the preparation of documents inviting interest and documents. Invite bids to select investors.

Step 2: Organize bidding

• Within 30 days from the date the project information is announced, the investor is responsible for preparing and submitting the project registration documents.
• Evaluation of bid documents: The Department of Planning and Investment coordinates with relevant agencies to preliminarily evaluate the capacity and experience of investors who have submitted registration documents to implement the project.
• Prepare, appraise and approve the Investor Selection Plan: The Department of Planning and Investment prepares a report on the appraisal results of the investor selection plan and submits it to the Chairman of the Provincial People’s Committee for approval.
• Prepare, evaluate and approve bidding documents
• After obtaining the results of approval of the investor selection plan, the bidding party shall prepare or hire a consultant to prepare bidding documents.
• Based on the Approval Proposal and Report on appraisal of bidding documents of the appraisal agency, the Chairman of the Provincial People’s Committee shall approve the bidding documents as a basis for investor selection.
• Organization of investor selection: Within 05 working days from the date of the document approving the investor selection results, the bidding party posts information about the investor selection results on the Network System. national bidding. At the same time, send a written notification of investor selection results to investors participating in the bid.

Step 3: Negotiate, complete and sign the contract

Based on the results of investor selection, the investor ranked first is invited to negotiate and complete the contract. In case the investor is invited to negotiate and finalize the contract but does not participate or refuses to negotiate and finalize the contract, the bid guarantee will not be returned.

Step 4: Implement the project

After signing the contract, the Bidder, the winning investor or the project enterprise established by the winning investor to implement the project in coordination with the Department of Natural Resources and Environment shall submit it to the Chairman of the People’s Committee. The province decides to recover land and decides to approve compensation, support and resettlement plans.

Order and procedures for land allocation and land lease; Determining land use fees and land rent for winning investors is carried out in accordance with land laws.

Content specified in Article 46, Law on Bidding 2023.

Consulting services on land allocation procedures through auction of land use rights

Consulting services on land allocation procedures through land use rights auctions provide professional support for investors during the auction participation process. Long Phan with a team of experts who have a deep understanding of land law and the auction process. Using consulting services at Long Phan helps investors optimize their chances of winning the bid and avoid legal risks. Consulting services include main contents such as:

• Analyze the feasibility of the auction project;
• Instructions for preparing documents to register to participate in the auction;
• Consulting on effective auction strategies;
• Support in the process of negotiating and signing contracts after winning the auction.

In addition, consulting services also help investors resolve legal issues that arise during project implementation.

Procedures for bidding to select investors to implement projects using land is a complex process, requiring a deep understanding of land law and practical experience. If you need professional support on land allocation procedures through auction, customers can contact hotline 0906735386 for detailed advice. We are committed to providing professional and effective consulting services, helping customers optimize investment opportunities and project development.