On April 8, 2025, the Government issued Decree No. 85/2025/ND-CP detailing certain articles of the Public Investment Law (“Decree 85”). The key ponits of Decree 85 are as follows:
1. Decentralization or Delegation for Public Service Units to Approve Public Investment Projects
The Public Investment Law establishes principles for decentralizing authority in determining investment policies for programs and projects that utilize lawful revenues from state agencies and public service units. This aligns with regulations regarding the financial autonomy of these units. Decree 85 specifies the details for public service units to participate in approving public investment projects funded by lawful revenues generated by such units:
a) Authority for Determining Investment Policies:
- Heads of public service units that ensure their regular and investment expenditures independently can decide on investment policies for programs and projects in groups A, B, and C under their management.
- Heads of public service units that ensure only their regular expenditures independently can decide on investment policies for group B and C projects under their management.
- Heads of other public service units can decide on investment policies for group C projects under their management.
b) Authority for Investment Decisions:
- Heads of public service units have the authority to make investment decisions for programs and projects in groups A, B, and C under their management.
- Public service units mentioned in this category may serve as the project owner for projects without construction components. For projects with construction components, determining the project owner follows the legal provisions on construction.
c) Consistency Across Administrative Levels:
The determination of authority for investment policies and investment decisions for public investment projects funded by lawful revenues remains consistent across centrally managed and locally managed public service units.
This decentralization empowers public service units to take the initiative in investment decision-making, thereby enhancing public investment efficiency nationwide.
2. Detailed Guidelines for Suspending Public Investment Programs or Projects
The Public Investment Law permits the suspension of programs or projects but does not specifically define cases where such suspension is required. Decree 85 provides detailed regulations, dividing cases into two main categories:
a) Projects with Approved Investment Policies but No Investment Decisions Yet:
These are projects not yet officially implemented. Decree 85 stipulates that the authority approving the investment policy has the discretion to suspend it and bears responsibility for their decision.
b) Programs or Projects with Investment Decisions Already Made:
These are projects already operational, and the suspension is applicable in specific cases:
- Continuing implementation causes severe economic, social, defense, security, foreign relations, or environmental consequences.
- Suspending the program or project results in higher financial, economic, and social efficiency.
- Due to unforeseen and unmanageable external factors that render continuation impossible despite all necessary measures being taken.
These provisions enhance the post-project monitoring and evaluation mechanism, ensuring efficient use of public investment resources and preventing waste.
Decree 85 takes effect on April 8, 2025./.
Comment: