Decree No. 120/2018/ND-CP amending and supplementing several articles of Decree No. 77/2015/ND-CP dated September 10, 2015 on medium-term and annual public investment plans, Decree No. 136/2015/ND-CP dated December 31, 2015 guiding the implementation of certain provisions of the Public Investment Law, and Decree No. 161/2016/ND-CP dated December 2, 2016 on special mechanisms for managing investment construction for certain projects under national target programs from 2016 to 2020.

DECREE

REGARDING AMENDMENTS AND SUPPLEMENTS TO SEVERAL ARTICLES OF THE DECREE NO. 77/2015/ND-CP Pursuant to the Government's Decree No. 58/2 ISSUED ON SEPTEMBER 1, 2015 BY THE GOVERNMENT ON THE MID-TERM PUBLIC INVESTMENT PLAN AND ANNUAL PLANSAND NUMBER136/2015/ND-CP DATED DECEMBER 31, 2015 BY THE GOVERNMENT ON GUIDELINES FOR IMPLEMENTATION OF CERTAIN PROVISIONS OF THE PUBLIC INVESTMENT LAW AND 161/2016/ND-CPnumberDATED DECEMBER 2, 2016 BY THE GOVERNMENT ON SPECIAL MECHANISMS FOR MANAGEMENT OF INVESTMENT AND CONSTRUCTION FOR CERTAIN PROJECTS UNDER NATIONAL TARGET PROGRAMMES FROM 2016 TO 2020 BASED ON RESOLUTION NO. 100/2015/QH13 DATED NOVEMBER 12, 2015 OF THE NATIONAL ASSEMBLY APPROVING THE INVESTMENT POLICY FOR NATIONAL TARGET PROGRAMMES FROM 2016 TO 2020; THE GOVERNMENT ENACTS THE DECREE ON AMENDMENTS AND SUPPLEMENTS TO SEVERAL ARTICLES OF THE DECREENO. 77/2015/ND-CP DATED SEPTEMBER 10, 2015 BY THE GOVERNMENT ON THE MID-TERM PUBLIC INVESTMENT PLAN AND ANNUAL PLANS, DECREE NO.

Pursuant to the Law on Government Organization dated June 19, 2015;

Pursuant to the Law on Public Investment dated June 18, 2014;

NO. 136/2015/ND-CP DATED DECEMBER 31, 2015 BY THE GOVERNMENT ON GUIDELINES FOR IMPLEMENTATION OF CERTAIN PROVISIONS OF THE PUBLIC INVESTMENT LAW AND DECREE NO.

At the proposal of the Minister of Planning and Investment;

NO. 161/2016/ND-CP DATED DECEMBER 2, 2016 BY THE GOVERNMENT ON SPECIAL MECHANISMS FOR MANAGEMENT OF INVESTMENT AND CONSTRUCTION FOR CERTAIN PROJECTS UNDER NATIONAL TARGET PROGRAMMES FROM 2016 TO 2020.NO. 77/2015/ND-CPAMENDMENTS AND SUPPLEMENTS TO SEVERAL ARTICLES OF THE DECREE NO. 77/2015/ND-CP DATED SEPTEMBER 10, 2015 BY THE GOVERNMENT ON THE MID-TERM PUBLIC INVESTMENT PLAN AND ANNUAL PLANS ARE AS FOLLOWS:136/2015/ND-CP1. ABOLISH POINTS A, B, G OF CLAUSE 7 OF ARTICLE 3.DATED DECEMBER 2, 2016 BY THE GOVERNMENT ON SPECIAL MECHANISMS FOR MANAGEMENT OF INVESTMENT AND CONSTRUCTION FOR CERTAIN PROJECTS UNDER NATIONAL TARGET PROGRAMMES FROM 2016 TO 20202. ADD POINT C OF CLAUSE 2 OF ARTICLE 13 AS FOLLOWS:

Article 1. "c) For projects under the Sustainable Forestry Development Programme: the time for allocating funds to complete the project according to the forestry cycle."

3. AMEND AND SUPPLEMENT ARTICLE 27 AS FOLLOWS:

"ARTICLE 27. CONDITIONS FOR PROGRAMMES AND PROJECTS TO BE ALLOCATED FUNDS IN THE ANNUAL PUBLIC INVESTMENT PLAN

1. COMPLY WITH THE REQUIREMENTS SET OUT IN ARTICLE 56 OF THE PUBLIC INVESTMENT LAW.

2. FOR NEWLY STARTED PROJECTS, IN ADDITION TO THE REQUIREMENTS SET OUT IN SUB-CLAUSE 1 OF THIS ARTICLE, THE FOLLOWING REQUIREMENTS MUST ALSO BE MET:

a) Approval by the competent authority of the investment decision by October 31 of the year preceding the plan year, except for emergency projects, projects using reserve funds from the state budget, increased revenue, surplus budget funds, and other cases decided by the Prime Minister;

b) Clearly define sources of funding and the ability to balance these sources; ensure sufficient funding according to the completion schedule specified in the mid-term public investment plan;

c) Allocate sufficient funding according to the schedule approved by the competent authority in the first year of implementation of the project.

3. Emergency projects and newly generated necessary projects added to the mid-term public investment plan may be allocated funds from the reserve within the mid-term public investment plan as stipulated in Article 7 of this Decree and must have the investment policy and investment decision approved by the competent authority.

4. For pre-investment capital or pre-investment projects, there must be a decision allowing pre-investment and a pre-investment budget estimate by the competent authority by October 31 of the year preceding the plan year."

4. AMEND CLAUSE 2 OF ARTICLE 45 AS FOLLOWS:

"2. The maximum advance draw of the next year's state budget shall not exceed 20% of the annual construction investment expenditure budget according to each source of funding for construction projects and shall not exceed the total planned mid-term five-year capital for the project. The principles, criteria, conditions, and authority to decide on the advance draw of the next year's state budget shall be implemented in accordance with the State Budget Law."

5. AMEND AND SUPPLEMENT ARTICLE 46 AS FOLLOWS:

"ARTICLE 46. IMPLEMENTATION AND DISBURSEMENT OF CAPITAL IN THE PUBLIC INVESTMENT PLAN

1. THE TIME FOR IMPLEMENTATION AND DISBURSEMENT OF CAPITAL IN THE MID-TERM AND ANNUAL PUBLIC INVESTMENT PLAN SHALL BE IMPLEMENTED IN ACCORDANCE WITH THE PROVISIONS OF ARTICLE 76 OF THE PUBLIC INVESTMENT LAW.

2. FOR PROJECTS USING STATE BUDGET FUNDS, NATIONAL TREASURY BONDS, GOVERNMENT BONDS, LOCAL GOVERNMENT BONDS, FUNDS FROM RETAINED REVENUES FOR INVESTMENT BUT NOT YET INCORPORATED INTO THE STATE BUDGET, THE TIME FOR DISBURSEMENT OF THE ANNUAL PUBLIC INVESTMENT PLAN CAN BE EXTENDED UNTIL DECEMBER 31 OF THE YEAR FOLLOWING THE PLAN YEAR.

IN SPECIAL CASES, THE GOVERNMENT SHALL REPORT TO THE NATIONAL ASSEMBLY STANDING COMMITTEE FOR ADDITIONAL BUDGET ESTIMATE FOR THE NEXT YEAR BUT SHALL NOT EXCEED THE TOTAL FOREIGN CAPITAL PLANNED IN THE MID-TERM PUBLIC INVESTMENT PLAN AS DECIDED BY THE NATIONAL ASSEMBLY.

4. PROCEDURE AND PROCEDURES FOR EXTENDING THE IMPLEMENTATION AND DISBURSEMENT TIME OF THE ANNUAL PUBLIC INVESTMENT PLAN CAPITAL FOR CENTRAL GOVERNMENT BUDGET, NATIONAL TREASURY BONDS, GOVERNMENT BONDS, ODA AND FAVORABLE LOANS FROM FOREIGN DONORS AS PROVIDED IN POINT A OF SUB-CLAUSE 3 OF THIS ARTICLE:

a) AFTER THE END OF THE BUDGETARY FINALIZATION PERIOD, MINISTRIES, SECTORS, AND LOCALITIES SHALL DIRECT THE PROJECT OWNER TO PROCESS WITH THE STATE TREASURY TO TRANSFER REMAINING UNDISBURSED FUNDS TO THE NEXT YEAR IN ACCORDANCE WITH THE REGULATIONS.

b) BY MARCH 31 EACH YEAR AT THE LATEST, MINISTRIES, SECTORS, AND LOCALITIES SHALL AGGREGATE THE COMPLETE LIST OF PROJECTS AND THE AMOUNT OF FUNDS EXTENDED TO THE NEXT YEAR AND SEND IT TO THE MINISTRY OF PLANNING AND INVESTMENT AND THE MINISTRY OF FINANCE.

c) AFTER MARCH 31 EACH YEAR, FUNDS REMAINING UNDISBURSED FROM THE PREVIOUS YEAR'S PLAN THAT HAVE NOT BEEN AGGREGATED AND REPORTED IN ACCORDANCE WITH POINT B OF SUB-CLAUSE 3 OF THIS ARTICLE SHALL BE RECLAIMED TO THE CENTRAL BUDGET OR CANCELLED."

5. FUNDS PLANNED FOR INVESTMENT IN THE PREVIOUS YEAR EXTENDED FOR DISBURSEMENT TIME AS PROVIDED IN SUB-CLAUSE 2 AND POINT A OF SUB-CLAUSE 3 OF THIS ARTICLE SHALL BE SETTLED IN THE BUDGET OF SUBSEQUENT YEARS ACCORDING TO ACTUAL DISBURSEMENT IN EACH YEAR.

AMENDMENTS AND SUPPLEMENTS TO SEVERAL ARTICLES OF THE DECREE NO. 136/2015/ND-CP DATED DECEMBER 31, 2015 BY THE GOVERNMENT ON GUIDELINES FOR IMPLEMENTATION OF CERTAIN PROVISIONS OF THE PUBLIC INVESTMENT LAW ARE AS FOLLOWS:

1. AMEND AND SUPPLEMENT CLAUSE 4 OF ARTICLE 3 AS FOLLOWS: "EMERGENCY PROJECTS ARE PROJECTS THAT NEED TO BE IMPLEMENTED IMMEDIATELY TO ACHIEVE THE FOLLOWING OBJECTIVES: PROTECTING NATIONAL SOVEREIGNTY, ENSURING NATIONAL SECURITY, AVOIDING DIRECT THREATS TO THE LIVES, HEALTH, AND PROPERTY OF COMMUNITIES, STATE PROPERTY IN THE AREA, OR NOT IMPACTING NEARBY STRUCTURES SEVERELY, QUICKLY ADDRESSING OR MITIGATING THE CONSEQUENCES OF NATURAL DISASTERS, UNAVOIDABLE INCIDENTS, ENVIRONMENTAL EMERGENCIES, AND OTHER EMERGENCY SITUATIONS DECIDED BY THE PRIME MINISTER."

2. AMEND ARTICLE 10 AS FOLLOWS:

Article 2. Amending and supplementing some articles of Government Decree No. 136/2015/NĐ-CP dated December 31, 2015, guiding the implementation of certain provisions of the Law on Public Investment as follows:

1. Amend and supplement Clause 4 of Article 3 as follows: "An urgent project is a project that needs to be implemented immediately for the following objectives: protecting national sovereignty, ensuring national security, preventing direct disasters to the lives, health, and property of the local community, state property in the area, or not causing serious impact on adjacent works, promptly addressing or rescuing, or preventing consequences that may arise from natural disasters, force majeure incidents, severe environmental accidents, or other urgent cases decided by the Prime Minister."

2. Amend Article 10 as follows:

"1. The procedures for deciding on investment orientation for Group A projects (including emergency projects as specified at point b, Clause 3, Article 33 of the Public Investment Law) shall be implemented in accordance with the provisions of Article 23 of the Public Investment Law.

2. The procedures for deciding on investment orientation for public-private partnership investment projects shall be implemented in accordance with the laws on public-private partnership investment.

3. Amend Article 14 as follows:

"Article 14. Procedures and formalities for deciding on investment orientation for emergency Group B and Group C projects using central government budget funds

1. For projects managed by central ministries and agencies, the Head of the ministry or agency shall decide on the emergency situation and shall be responsible for:

a) Assigning competent units to organize surveys and prepare the Report proposing investment orientation for the project;

b) Assigning competent units to review the project;

c) Directing the unit specified at point a of this clause to complete the Report proposing investment orientation for the project for submission.

2. For projects managed by provincial level, the Chairman of the People's Committee of the province shall decide on the emergency situation and shall be responsible for:

a) Assigning specialized agencies or the People's Committee of the district to prepare the Report proposing investment orientation for the project;

b) Assigning the Department of Planning and Investment to take the lead and coordinate with relevant departments to review the Report proposing investment orientation for the project;

c) Directing the agency specified at point a of this clause to complete the Report proposing investment orientation for the project according to the review report specified at point b of this clause to be sent to the Department of Planning and Investment for consolidation and reporting to the People's Committee of the province for submission. The Prime Minister, concurrently sending to the Ministry of Planning and Investment, the Ministry of Finance, and relevant central ministries and agencies related to the emergency project.

3. The Ministry of Planning and Investment shall take the lead and coordinate with the Ministry of Finance to examine the possibility of supplementing central government budget funds in the year to implement the emergency project or urgent component that needs to be implemented within the annual plan, and submit to the Prime Minister for decision on investment orientation and supplementation of central government budget funds in the year for implementation.

4. The Prime Minister shall decide on investment orientation for emergency projects including objectives, scale, total investment amount, location, progress schedule, capital structure, specifically determining the level of central government budget investment for the project.”

4. Amend Article 15 as follows:

"Article 15. Procedures and formalities for deciding on investment orientation for emergency Group B and Group C projects using local budget funds

1. For projects managed by provincial level, the Chairman of the People's Committee of the province shall decide on the emergency situation and shall be responsible for:

a) Assigning specialized agencies managing emergency projects or the People's Committee of the district to organize actual surveys and prepare the Report proposing investment orientation for the project;

b) Assigning the Department of Planning and Investment to take the lead and coordinate with relevant departments to review the Report proposing investment orientation for the project and report to the People's Committee of the province for decision on investment orientation and supplementation of funds for implementation;

c) Deciding on investment orientation for emergency projects including objectives, scale, total investment amount, location, time, progress schedule, capital structure; Reporting to the Provincial People's Council at the nearest session about the decision on investment orientation for emergency Group B projects and key Group C projects managed by the province.

2. For projects using balanced local budget funds at the district and commune levels, the Chairman of the People's Committee of the district and commune shall base on emergency orders or decisions on emergency situations by authorized authorities:

a) Assigning specialized agencies of the district and commune to prepare the Report proposing investment orientation for the project;

b) Assigning specialized agencies managing investment or establishing a Review Board to review the Report proposing investment orientation for the project and report to the People's Committee of the same level for decision on investment orientation and supplementation of funds for implementation;

c) Deciding on investment orientation for emergency projects including objectives, scale, total investment amount, location, progress schedule, capital structure; Reporting to the People's Council of the same level at the nearest session about the decision on investment orientation for emergency Group B projects and key Group C projects managed by the same level.

5. Amend Clause 3 of Article 16 as follows:

"3. Specifically for emergency projects, components of emergency projects that need to be implemented immediately to address natural disasters, storms, floods, dike collapses, embankment collapses that could cause dam failures, road collapses causing traffic congestion, and emergency situations in national defense and security areas, implementation may commence upon receipt of an emergency order or decision on an emergency situation by authorized authorities. Investment procedures as stipulated in Clause 2 of this Article will be prepared and completed during the implementation of the project."

6. Repeal the provisions at Clause 2 of Article 17.

7. Repeal the provisions at Clause 6 of Article 19.

8. Amend and supplement point d of Clause 1 of Article 20 as follows:

"d) Emergency orders and decisions on emergency situations by authorized authorities (applicable to emergency projects);"

9. Repeal the provisions at Clause 8 of Article 24.

10. Repeal the provisions at Clauses 2, 3, and 4 of Article 31.

11. Repeal the provisions at Article 33.

12. Amend and supplement point b of Clause 4 of Article 45 as follows:

"b) The authority deciding on investment projects under emergency orders, decisions on emergency situations by authorized authorities as specified at point a of this clause may delegate the investor to make decisions and bear responsibility for organizing the management and implementation of the project from the project preparation, survey, design, construction stages to the completion and operation stage, and bear responsibility for such delegation."

13. Supplement Clause 10 of Article 60 as follows:

"10. The provisions on deciding on investment orientation for Group A public investment projects, decentralization, or delegation at Clause 3 and the provisions at Clause 4 of this Article shall not apply to state-owned corporations and holding companies."

Article 3. Repeal the provisions related to the Standing Committee of the People's Council in Articles 19, 20, 25, 33, 34, 39, and 55 of Decree No. 77/2015/ND-CP dated September 10, 2015, and in Articles 21, 61, and the attached appendices of Decree No. 136/2015/ND-CP dated December 31, 2015."

Article 4. Amend and supplement some Articles of Decree No. 161/2016/NĐ-CP dated December 2, 2016 of the Government on special mechanisms for investment and construction management for certain projects under national target programs during the period of 2016-2020 as follows:

1. Appendix III attached hereto;

"Projects meeting the following three criteria shall apply the capital appraisal and financial balance assessment procedures prescribed in Article 3 of Decree No. 161/2016/NĐ-CP:

- Belonging to the content of national target programs during the period of 2016-2020;

- Total investment cost below VND 15 billion and not technically complex;

- Utilizing part of the state budget, the remaining funds being contributed by the people and other sources, with the participation and supervision of the people. The people's contribution may be in cash or in kind, and labor days converted into cash."

Article 5. Effectiveness

1. This Decree takes effect from the date of issuance.

2. This Decree applies to all cases already specified in Resolution No. 70/NQ-CP dated August 3, 2017 of the Government on major tasks and solutions to accelerate the implementation and disbursement of public investment capital in accordance with this Decree.

3. The Ministers, Heads of ministerial-level agencies, Heads of government-attached agencies, Heads of other central agencies, Chairpersons of People's Committees of provinces and centrally-run cities are responsible for implementing this Decree./.