Directive 20/CT-TTg 2019 on medium-term public investment planning for the 2021-2025 period issued by the Prime Minister

DIRECTIVE

PLANNING FOR MEDIUM-TERM PUBLIC INVESTMENT FOR THE 2021-2025 PERIOD

Pursuant to Law on Public Investment, Law on State Budget; the Prime Minister requests ministries, ministerial-level agencies, agencies affiliated to the Government, other agencies affiliated to the central government, provincial People's Committees (hereinafter referred to as ministries and local governments) to plan for the medium-term public investment for the 2021-2025 period as follows:

I. ASSESSING THE IMPLEMENTATION OF MEDIUM-TERM PUBLIC INVESTMENT PLAN FOR THE 2016-2020 PERIOD

Pursuant to Resolutions of the Central government, objectives, orientation of development specified in the 10-year socio-economic development strategy for the 2011-2020 period; Resolution No. 07-NQ/TW dated November 18,2016 by the Politburo on the restructuring of the State budget, public debt management to ensure the safety and sustainability of the national finance (Resolution No. 07-NQ/TW); the following Resolutions by the National Assembly: Resolution No. 142/2016/QH13 on 5-year socio-economic development plan for the 2016-2020 period (Resolution No. 142/2016/QH13), No. 25/2016/QH14 on 5-year national financial plan for the 2016-2020 period (Resolution No. 25/2016/QH14), Resolution No. 26/2016/QH14 on medium-term public investment plan for the 2016-2020 period (Resolution No. 26/2016/QH14), Resolution No. 71/2018/QH14 on adjustment of medium-term public investment plan for the 2016-2020 period; Decision No. 63/QD-TTg dated January 01, 2018 approving the Scheme for restructuring public investment for the 2017-2020 period with orientations by 2025 (Decision No. 63/QD-TTg); other Resolutions of the Government or People’s Councils at all levels regarding socio-economic development plans, 5-year local finance plan for the 2016-2020 period, medium-term public investment plan for the 2016-2020 period, planning for socio-economic development in regions and areas, planning for development of industries; based on the facts and actual result of implementing medium-term public investment plans for the 2016-2018 period, expected results thereof in 2019 and plans for 2020, ministries and local governments shall assess the implementation of medium-term public investment for the 2016-2020 period according to each specific source of funding, which includes the planned amount of investment from the State budget (funding from the Central-government budget, including the Government bonds, and funding for balancing local government budget), revenues retained for investment purposes but not yet used for balancing State budget, development investment credit capital of the State; funding from issuance of municipal bonds, other loans of local-government budgets; official development assistance (ODA) funding and concessional loans from foreign sponsors. The following contents shall be fully presented in the report on assessment of implementation of medium-term public investment plan:

1. The implementation of approved plans sorted by industries, fields, programs, projects and funding sources, including: allocated funding and adjustment of annual funding plan for executing projects assigned by the Prime Minister as specified in the medium-term
public investment plan for the 2016-2020 period, funding transferred from last year (if any); adjustments of medium-term public investment plan from 2016-2020 (if any), disbursement of funding sorted by planned funding in the year and, funding transferred from last year, the number of projects whose total investment has been adjusted, the amount of projects behind the approved schedule; formulation, appraisal and approval of investment policies, decisions on investment in public investment projects and adjusted plans (if any) in accordance with Law on public investment and other instructional documents of the Government, the Prime Minister. The execution of projects funded by proceeds from selling property associated to land and transfer of land use rights. Ministry of Health, Ministry of National Defense and Ho Chi Minh City People’s Committee shall report the progress of investment, construction of 05 central and tertiary referral hospitals funded by the Support Fund for Enterprise Reorganization and Development (details of total amount to be provided by the Fund, disbursed amount, approved amount but not yet disbursed, amount not yet approved), funding from the central-government budget allocated for development investment in the 2017-2019 period (including reimbursed amounts) and the implementation of plans.

As for investment capital in the balance of the local government’s budget, local governments shall clearly report the annually allocated funding for balancing local budgets compared to those specified in the medium-term public investment plan in the period of 2016-2020 by the Prime Minister, the implementation of public investment plan which uses the local budget as prescribed in Resolution 71/2018/QH14, the local budget deficit of every year and the average thereof in the period of 2016-2020; the investment progress of projects with budget deficit; the use of the annual increase in local government revenues for investment.

2. The number of projects with outstanding capital construction debts the repayment of which is specified in the medium-term public investment plan in the period of 2016-2020, the funding allocated for covering outstanding capital construction debts in the 2016-2019 period and the amount to be allocated to cover such debts in 2020.

3. The advanced amount to be recovered as reported in the medium-term public investment plan in the 2016-2020 period, the allocation of capital in the period of 2016-2019 for advance recovery, estimated remaining amount of budget expected to be allocated to recover advanced funding in 2020. The amount of capital which has been advanced up to the end of 2015 plan as reported in the medium-term public investment plan for the 2016-2020 period but not yet recovered due to unavailability of the annual planned budget allocations, the amount of advanced capital arising till now which has not been reported in the medium-term public investment plan (if any) and proposed solutions.

4. The number of projects completed and handed over in the period of 2016-2020, newly-started projects in such period yet allocated annual capital, transferred projects to the 2021-2025 period and sorted by group A, B, C projects.

5. The management, administration and compliance with laws on public investment in the 2016-2020 period.

6. Achievements in public investment, such as the enhancement in capability, improvement in public services etc. and impacts on the achievement of national 5-year socio-economic development objectives in the 2016-2020 period of ministries and local governments; the management and use of completed investment projects in the 2016-2020 period.

7. Difficulties, obstacles in the implementation, objective and subjective causes and responsibility of relevant agencies.

8. Solutions, proposals relating to mechanism, policies for the remaining time of the medium-term public investment plan in the 2016-2020 period.

9. Presiding agencies, ministries, branches, local agencies implementing the national target programs, target programs shall evaluate the implementation of such programs as follows:

a) The organization of implementing the national target programs, target programs in the 2016-2020 period.

b) The allocation and transfer of capital for the implementation of the national target programs, target programs of the 2016-2020 period, the conjunction of programs, the mobilization of sources and conjunctions of capital sources for programs in the 2016-2019 period and for 2020, the capital disbursement of the program.

c) The management, administration and compliance with regulations in the management of the national target programs, target programs in the 2016-2020 period.

d) Achievements, especially the achievement of objectives approved in decisions on investment in target programs and the national target programs; difficulties, obstacles that arise during the implementation of such programs, reasons and experiences thereof, and responsibility of relevant agencies.

dd) Solutions, policies for the rest of the 2016-2020 period for effective implementation of the program.

II. PLANNING FOR MEDIUM- TERM PUBLIC INVESTMENT OF 2021-2025 PERIOD

The medium-term public investment plan for the 2021-2025 period shall be formulated in accordance with Law on Public investment, Law on State budget, closely follow the plan to submit to Party congresses at all levels on objectives, orientation, tasks of the socio-economic development in the 2021-2030 period, the 5-year socio-economic development plan in the 2021-2025 period (including objectives, orientation, main tasks regarding finance, budget, investment); Decree No. 07-NQ/TW by the Politburo; Decision No. 63/QD-TTg by the Prime Minister; and the result of implementing the medium-term public investment plan of the 2016-2020 period.

1. Objectives and orientation of medium-term public investment of the 2021-2025 period

Maximize the attraction and use effectively investments in economy development, investment in essential socio-economic facilities serving the implementation of the 10-year Strategy of socio-economic development of the 2021-2030 period and 5-year socio-economic development plan for the 2021-2025 period. Focus on the provision of capitals to expedite the progress and completion of National target programs, important national projects and key projects of great
significance for the socio-economic development with regional connection and spreading. Prioritize investments from the State budget in mountainous, border or island areas, areas with many ethnic minorities, remote and isolated areas, areas with high frequency of natural disasters and areas with extremely disadvantaged socio-economic conditions. Such investments from the State budget shall not be allocated to sectors or projects which other economic sectors may invest in. The capital from the State budget shall be used as bait capital to attract the investment of other economic sectors. Create breakthrough strategies to attract investment from domestic and foreign private sector in the form of Public-Private-Partnerships for the development of important socio-economic facilities, especially projects with positive effect on the economy development, social infrastructure projects serving the community in health, education etc.

2. Principles of planning for medium-term public investment of the 2021-2025 period

a) The planning for medium-term public investment shall serve the implementation of objectives and orientation specified in the 10-year socio-economic development strategy of the 2021-2030 period, 5-year plan of socio-economic development of Vietnam or of sectors, domains, provinces and other socio-economic development plans, plans of sectors, domains which have been approved by competent authorities.

b) Such planning shall be conformable with 5-year national financial plan of the 2021-2025 period, the ability to balance the public investment budget and attract capital from other economic sectors; ensure macroeconomic balances and the public debt safety.

c) The allocation of public investments shall be conformable with principles, criteria and quotas of allocating the development investment capital from the State budget in the 2021-2025 period approved by competent authorities.

d) Based on the evaluation of implementing tasks of socio-economic development and medium-term public investment plan of the 2016-2020 period, ministries and local governments shall determine the main targets in the 2021-2025 period which shall be in line with the Objectives of allocating the public investment in the 2021-2025 period; arrange the capital allocation order of approved programs, projects according to urgency, importance and implementation capability in the 2021-2025 period; focus on the provision of capitals to expedite the progress and complete National target programs, projects of national key projects which are necessary to boost the socio-economic development of Vietnam, ministries and branches; repay advances from the State budget and loans of local-government budgets.

dd) Investments from the State budget shall not be allocated for programs, projects which are not in public investment sector.

e) Allocate funds for investment plan in 2020 and for the 2021-2025 period to organize the formulation, appraisal and decision of investment policies; formulation, appraisal and decision of investment policies for newly-started projects in the 2021-2025 period and funds for formulation, appraisal, decision or approval, announcement and arrangement of planning in accordance with law on planning.

g) Allocate sufficient capital of public investment in the 2021-2025 period for repayment of outstanding capital construction debts incurred before January 01, 2015.

h) Ensure the publicity, transparency and fairness in planning for medium-term public investment.

i) Ensure consistent management of objectives, mechanisms and policies; organize the decentralization in investment management in accordance with regulations to increase the autonomy of agencies and improve the effectiveness of investment.

3. Reviewing the list of transferred public investment projects from the 2016-2020 period to the 2021-2025 period

Ministries and local governments shall review projects listed in medium-term public investment plan in the 2016-2020 period, compile the list of in-progress projects sorted by sources of capital and the following groups: (i) Projects expected to be completed in the period of 2016-2020 but not allocated enough capital; (ii) Transferred projects which are completed after 2020; (iii) Projects listed in the medium-term public investment plan in the 2016-2020 period but not listed in the annual public investment plan; (iv) Projects with foreign capital from signed Agreements but not listed on the list of medium-term public investment projects of the 2016-2020 period.

4. Reviewing outstanding capital construction debts and advances

Ministries and local governments shall review the outstanding capital construction debts arising before January 01,2015 which are not aggregated with medium-term public investment plan of the 2016-2020 period, the amount of advanced till the end of 2015 and to be recovered in the 2021-2025 period; the advances in the 2016-2020 period with no recovery plan (if any).

5. Listing and allocating of public investment capital in the 2021-2025 period

Based on the principles, objectives, orientation of public investment of the 2021-2025 period prescribed in point 1 and 2 of Section II, ministries, branches and local government shall list projects and allocate the medium-term public investment capital to each industry, sectors, and programs according to the following order of priority:

a) Projects which have been completed and handed out but have not been sufficiently allocated funds;

b) Reciprocal capitals for projects using ODA capitals and concessional loans from foreign sponsors

c) State capital invested in projects in the form of Public-Private Partnerships (PPP)

d) Transferred projects which can catch up with approved progress;

dd) Projects expected to be completed in assigned period;

e) Newly-started projects shall fully satisfy the following conditions:

- Such projects shall be essential projects and meet the requirements of allocating capital in accordance with regulations.

- Capital for repayment of outstanding capital construction debts has been sufficiently allocated in accordance with regulations.

- The allocation of capital must be ensured to complete the program/project according to approved investment progress.

III. ORGANIZATIONS OF IMPLEMENTATION AND PROGRESS OF PLANNING FOR MEDIUM-TERM PUBLIC INVESTMENT OF THE 2021-2025 PERIOD

1. The Ministry of Planning and Investment shall take charge and cooperate with relevant agencies to complete the following tasks:

a) Providing guidelines for the implementation of this Directive before August 15, 2019, including specified guidelines on the progress of planning for medium-term public investment.

b) Formulating documents of principles, criteria and quotas of allocating the development investment capital from the State budget in the 2021-2025 period and submitting such documents to competent authorities in accordance with regulations before December 31, 2019.

c) Reviewing and consolidating medium-term public investment plans of the 2021-2025 period nationwide and submitting such documents to competent authorities in accordance with regulations before July 31, 2020.

d) Evaluating the implementation of the medium-term public investment plan of the 2016-2020 period before December 31, 2019; identifying difficulties and obstacles, proposing solutions for such implementation in the remaining time and reporting the result to the Prime Minister.

2. The Ministry of Finance shall:

b) Take charge and cooperate with the Ministry of Planning and Investment and relevant agencies to submit documents regarding estimated capability of the State budget for expenditures on development investment in the 2021-2025 period to competent authorities in accordance with regulations before January 31, 2020.

b) Cooperate with the Ministry of Planning and Investment to:

- Determine the quota of capital from the State budget for the national development in each sector listed on the medium-term public investment plan of the 2021-2025 period.

- Review and consolidate medium-term public investment plans of the 2021-2025 period.

3. Based on assigned tasks, functions and provisions prescribed in this Directive, Ministers, Heads of agencies affiliated to the Government and the Central, Presidents of People’s Committees of provinces and central-affiliated cities shall expeditiously organize the implementation in accordance with the progress prescribed in Law on Public investment and guidance of the Minister of Planning and Investment, ensure the quality, economy and effectiveness of the planning for medium-term public investment of the 2021-2025 period.

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