National Assembly adopts resolution adjusting medium-term public investment plan

NA deputies vote to adopt a resolution on adjustments to the medium-term public investment plan for 2016-2020 at the ongoing sixth session on November 12. (Photo: NDO/Duy Linh)

Under the resolution, total foreign capital in medium-term public investment will be adjusted up from VND300 trillion to a maximum of VND360 trillion, while domestic capital will be reduced correspondingly to meet disbursement requirements of projects using foreign capital. Capital for important national projects is reduced to VND70 trillion from the initial VND80 trillion.

The NA allows the use of the common reserve fund of the medium-term public investment plan for 2016-2020 on the basis of ensuring the annual State budget’s balance and maintaining the ceiling for public investment at VND2 quadrillion along with the overspending rate and public investment safety as decided by the NA.

The NA allows localities to allocate annual public investment plan using capital from local budget on the basis of collection while ensuring that it will not surpass the allowed overspending rate.

The People’s Councils at all levels are assigned to decide the reserve allocation of the medium-term public investment plan for 2016-2020 using local budget in line with principles and priorities as stipulated in the Law on Public Investment and the NA’s Resolution 26/2016/QH14 on the medium-term public investment plan for 2016-2020.

The NA decides to use VND10 trillion from the adjustment in capital for important national projects to allocate for projects on natural disaster prevention and mitigation, strengthening key dykes, dealing with riverbank and coastline erosion, and moving residents from areas with high risks of flash floods and landslides.

The resolution also requires the addition of the list of projects using foreign ODA and preferential loans to the medium-term public investment for 2016-2020 so as to ensure the pace of implementation in line with commitments to donors.

The resolution instructs the transfer of nearly VND648.7 billion from the common reserve of the medium-term public investment plan for 2016-2020 to the national target on sustainable poverty reduction.

It also allows the change of investment method from Public-Private Partnership to public investment using State budget for several projects under the coastal road planning for the section from Quang Ninh to Nghe An. The Government is assigned to build the list of investment, clarify the sources of capital and estimate investment amount for each specific project and submit them to the NA Standing Committee for consideration and approval.

The resolution stipulates the principles and order of priorities in allocating the reserve fund of the medium-term public investment plan sourced from the State budget and additional foreign capital. It requires attention to projects in the list of the 2016-2020 period that are underway but lack capital

The resolution requires the Government to push ahead with measures to remove obstacles in the implementation of the Resolution 26/2016/QH14 and accelerate the pace of allocation and disbursement of public investment capital.

The Government is also asked to urgently review regulations related to the medium-term public investment plan and propose adjustments and supplements when necessary, while intensifying inspections and auditing work and preventing and fighting corruption and wastefulness in the realm.

The resolution assigns the Government to review and complete procedures and conditions for the allocation of capital to the Vietnam Development Bank and urban railway projects of Hanoi and Ho Chi Minh City, and submit them to the NA for consideration and approval. Under the resolution, foreign capital will not be allocated yet to the Vietnam Expressway Corporation and the Vietnam Infrastructure Development and Finance Investment Joint Stock Company.

Source: NDO