Is it mandatory to adjust the structure of the total capital expenditures (“CAPEX”) when the cost structure of the total works estimate exceeds the total CAPEX structure?

The Ministry of Construction responded as follows:

1.Total amount of approved CAPEX is the maximum cost to implement the CAPEX project.The determination and appraisal of the works estimate as a basis for approval must ensure the conformity of the works estimate with the approved total investment; the conformity of the contents of the works estimate with the contents and requirements of the project. 

2. In case the estimate of some items in the approved works estimate is higher or lower than the amount of the corresponding item in the total CAPEX but the total estimate does not exceed the total CAPEX already approved, the law on management of construction investment does not require these adjustments to be approved. 

Details are in Official Letter No. 2806/BXD-KTXD issued by the Ministry of Construction on July 20, 2021

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