06 principles for the allocation of medium-term public investment plan capital for projects

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Article 51 of the Public Investment Law 2019 stipulates that the allocation of medium-term and annual public investment plan funds for programs and projects must adhere to the following principles:

- To implement the objectives and development orientation in the approved socio-economic development strategy, plan, and planning.

- To comply with the principles, criteria, and capital allocation norms determined by the competent authorities.

- To focus on allocating public investment funds to complete and accelerate the progress of national target programs, important national projects, and key programs and projects that are significant for the socio-economic development of the country, sectors, and levels.

- In each sector and field, the capital allocation follows the priority order as follows:- Projects that have been completed and handed over for use but have not been sufficiently funded;- Counterpart funds for projects using ODA and concessional loans from foreign sponsors;- State investment capital participating in projects under the public-private partnership method;- Continuing projects as per approved progress;- Projects expected to be completed within the plan period;- New projects commencing that meet the requirements stipulated in Clause 5 of this Article.

- The allocation of plan funds for new projects must meet the following requirements:- Necessary programs and projects that meet the conditions for fund allocation as specified in Articles 52 and 53 of this Law;- After allocating funds to settle outstanding basic construction debts as prescribed in Clause 4, Article 101 of this Law;- Ensure the allocation of sufficient funds to complete the program, project as per the approved investment progress.

- The National Assembly decides the level of funds, usage, and timing of using the common contingency of the national medium-term public investment plan from the central budget. People's Councils at all levels decide the level of funds, usage, and timing of using the common contingency of the medium-term public investment plan from the budget managed by their respective levels.

More details can be found in: Public Investment Law 2019 effective from January 1, 2020.

Thu Ba

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