Control over outstanding debt settlement in capital construction to be tightened

All outstanding debts in capital construction arising after December 31, 2014, would be settled in accordance with the law on public investment and current regulations.

Under Directive No. 07/CT-TTg, on intensified application of measures to settle outstanding debts in capital construction, the Prime Minister requests ministries, sectors and localities to strictly control the formulation, appraisal and approval of investment plans and decisions with regard to public investment projects; and enhance responsibility of competent agencies performing formulation, appraisal and approval tasks.

Specifically, all sectors and localities have to control the scope and size of their investment projects according to approved objectives, fields and programs and strictly comply with regulations on capital source evaluation and capital balancing capacity under their competence. They may not approve investment plans and decisions in case capital sources and balancing capacity remain unidentified or capital sources exceed the level evaluated by competent agencies.

The Directive also requires adjustments of investment projects to comply with Clause 2, Article 46 of the Law on Public Investment, and suit the budget balancing capacity. Capital source evaluation and capital balancing must be conducted before projects are submitted to competent authorities for adjustment.

The Prime Minister requests ministries, sectors and localities to submit before June 30, 2015, the list and amounts of capital source-based outstanding debts in capital construction up to December 31, 2014, clarifying outstanding debts in capital construction for which constructed volume pre-acceptance test records are available or unavailable by December 31, 2014.-

Source: http://vietnamlawmagazine.vn/