On January 1, 2020, the Government issued Decree No. 01/2020 / ND-CP amending and supplementing a number of articles of the Government’s Decree No. 84/2015 / ND-CP of September 30, 2015, on investment supervision and assessment. This Decree takes effect from the date of signing.
Accordingly, Decree No. 01/2020 / ND-CP issued, the Government has added many important provisions for public investment projects. In which, there are regulations on evaluation criteria for investment efficiency of public investment projects. Specifically include the following criteria:
– The level of achieving project investment objectives according to the approved investment decisions;
– The actual exploitation and operation index of the project compared with the project’s exploitation and operation indices;
– Internal rate of return (EIRR);
– Socio-economic, environmental impacts and other specific development objectives (poverty reduction, gender equality, policy households, priority subjects);
– Measures to minimize negative social and environmental impacts are taken.
In addition, for the evaluation of the efficiency of public investment, the Decree has supplemented the provisions on methods to evaluate the efficiency of investment in public investment projects as follows:
– Depending on the scale and nature of the project, a comparison and comparison method can be used (between actual results / data collected at the time of the evaluation and the set objectives / plans; or between project parameters at the time of evaluation with standard indicators; or a combination)
– Or a cost-benefit analysis method;
The promulgated Decree No. 01/2020 / ND-CP has solved many shortcomings in the process of implementing public investment projects, while Decree No. 84/2015 / ND-CP has encountered many difficulties during the time of implementation. Thereby, Decree No. 01/2020 / ND-CP is a firm legal basis to assess and implement public investment projects more effectively and avoid loss of state budget.