21 October 2011
On 18 August 2011, the Prime Minister (PM) issued Decision No. 44/2011/QD-TTg (Decision 44) promulgating the list of prioritised programs and projects for considering issuance of Government guarantees.
This list was formulated to implement Article 6.2 of Decree 15/2011/ND-CP (Decree 15) dated 16 February 2011 on provision and management of Government guarantees.
For information about Decree 15, see Mayer Brown JSM's Legal Update: "Decree on Provision and Management of Government Guarantees" of 30 March 2011.
Under Article 6.2 of Decree 15, the PM is required to approve any program or project: (i) applying high technology, (ii) in energy, mining or mineral processing sectors, (iii) for export manufacturing or provision of export services and (iv) in sectors and geographical areas in which investment is encouraged by the Government.
Decision 44 sets out the list of prioritised programs and projects for Government guarantee consideration, which comprise:
- Investment programs and key projects in all sectors for which the National Assembly (NA) or the PM has approved the investment decision as requiring urgent commencement.
- Credit programs implemented by State policy banks in sectors for which the PM has approved.
- Programs and projects funded by Official Development Aid (ODA).
- Programs and projects in the sectors of energy and mining:
- power sector development;
- petroleum refinery plants and natural gas;
- alumina and aluminium mining for which the NA has approved the investment policy.
- Programs and projects in construction and infrastructure development, comprising:
- investment in construction and commercial exploitation of deepwater sea ports, aircraft fleet, construction of highways, and construction of national road bridges all of which must be in accordance with the respective master plans approved by the PM;
- procurement of locomotives in projects for investment in the national railway system for which the NA has approved the investment policy;
- investment projects for construction of educational, training and vocational establishments with the capacity to recover their invested capital.
- Programs and projects for manufacturing important mechanical engineering products for substitution of imported goods.
- Other programs and projects approved by the PM.
Decision 44 took effect as from 10 October 2011.
For inquiries related to this Legal Update, please contact Dao Nguyen, Kevin B. Hawkins, or your usual contacts with our firm.
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