On 6 April 2020, the Government issued Decree no.40/2020/ND-CP specifying the implementation of some articles of the Law on Public Investment. In which, it includes 8 chapters and 54 articles. The Decree takes effect from the date of its signing and applies to organizations and individuals participating in or relating to public investment activities, management and use of public investment capital. For projects without construction components, the formulation, appraisal, approval and organization of management comply with this Decree and relevant specialized laws.
Accordingly, there are 12 contents regulated particularly in Decree as follow:
1. Dossiers, contents and time of evaluation, investment policy decision, investment policy adjustment decision, cases adjusting program investment policy and public investment projects of groups A, B, C.
2. Dossiers, contents and time of evaluation and decision on programs, projects; contents, process and procedure of elaborating and evaluating the adjustment of public investment programs or projects of groups A, B and C.
3. Principles, competence, process, procedure of decision on investment policy; principles, competence, content, process, procedure of elaborating and evaluating, deciding to invest public investment projects of groups A, B, C abroad.
4. Decentralizing the competence, process and procedure of decision on investment policies and investment for programs and projects of groups A, B and C using capital from the lawful revenue sources of the State agencies, public non-business units for investment.
5. Process and procedure to perform investment with subjects reimbursing preferential credit interest rates and management fees; providing charter capital to policy banks and off-budget state financial fund; investment support for other policy beneficiaries under the Prime Minister’s decision.
6. Subjects and contents evaluating preliminarily about environmental impacts to decide the investment policy of the project.
7. Managing the implementation of investment preparation tasks, planning tasks and public investment projects without construction components.
8. Elaborating, appraising, approving and allocating annual and medium-term plans of capital from the lawful revenue sources of state agencies and public non-business units using for investment.
9. Solutions for organizing, implementing and reporting situation of annual and medium-term public investment plan to the competent authorities.
10. Process and procedure to adjust medium-term and annual plans for public investment on the State budget.
11. Extending the time to implement and disburse annual plans for public investment on the State budget.
12. National information system and database on public investment.
With new adjustments of this Decree, the promulgation and organization of timely implementation of the Decree will remove difficulties and obstacles in the process of implementing public investment projects, especially the order and procedures for deciding investment policies and project investment, decentralizing capital source appraisal and ability to balance capital. With specific provisions, selective apprehending of current regulations on public investment management, Decree no. 40/2020/ND-CP guarantees clarity without overlapping, duplication and conflict with the provisions of other Laws and Decrees.
The Decree also ensures publicity, transparency and feasibility in implementing public investment projects; clearly decentralizing the decision-making authority on investment policy and renovating the planning method. This is an important legal basis to satisfy economy operating practices more effectively, overcome problems of capital or project; improve the publicity and transparency in public investment management, supplement regulations on the national information system and database on public investment
The Decree takes effect from 6 April 2020.