National Assembly approves pilot mechanisms to accelerate major projects in Hanoi

National Assembly approves pilot mechanisms to accelerate major projects in Hanoi

Hanoi is set to receive breakthrough decision-making powers after the National Assembly passed a resolution on December 11, enabling the capital city to apply special mechanisms for large, high-priority projects.

The National Assembly has approved special pilot mechanisms to accelerate major projects in Hanoi

On the morning of December 11, with 431 out of 435 delegates present voting in favour, the National Assembly passed a resolution piloting several special mechanisms and policies to implement important projects in the capital city. With this resolution, the NA agreed to grant Hanoi superior and priority mechanisms and policies.

In terms of authority for deciding and approving investment guidelines, the NA has allowed the city's People's Council to decide on investment guidelines for public projects and public-private partnership (PPP) projects that do not use central budget funds.

These include projects that need to be implemented immediately under directives of the Politburo, the Secretariat, the government Party Committee, or the Hanoi Party Committee, and those classed as projects of national importance. Projects using local budget funds and other lawful local funding sources in the city, with a total investment of VND30 trillion ($1.2 billion) or more, are also included.

Projects outside the chairman's authority to approve investment guidelines include nuclear power plant projects, foreign-invested projects in telecommunications services with network infrastructure, afforestation, publishing, journalism, and projects involving betting, casinos, and prize-winning electronic games for foreigners.

Projects that pose a risk of causing severe environmental impacts fall under the authority of the NA or the PM, as do projects in defence or security classified as top-secret.

For projects requiring the application of special mechanisms or policies inconsistent with existing laws, resolutions of the NA, investment ordinances, or resolutions of the Standing Committee of the NA, Hanoi People's Committee will report to the government, which will then submit them to the Standing Committee of the NA for permission. The government will subsequently report to the NA at the following session.

The resolution also allows for special contractor selection procedures for certain public investment and PPP projects. The city's People's Council will regulate the contents, dossiers, conditions, criteria, and procedures for selecting investors and contractors.

Public, PPP, and business projects that need immediate implementation under directives from central-level Party bodies and the Hanoi Party Committee may carry out planning procedures and commence construction simultaneously with the process of approving investment guidelines.

Investors and project owners will not be required to obtain construction permits and will be responsible for completing all legal requirements within six months of groundbreaking.

Regarding land recovery, allocation, and lease, the resolution clarifies that once authorised authorities approve the implementation of a project, the city will use the municipal budget and other lawful funding sources to carry out independent compensation, support, and resettlement before approving investment guidelines.

In addition to land recovery cases specified under Article 79 of the Land Law, the People's Council may decide on individual cases of land recovery to implement socioeconomic development projects in the national or public interest, and is fully responsible for such decisions.

The council will also determine the criteria and levels of compensation, support, and resettlement when the state recovers land for project implementation in the city.

The compensation level will be twice the regulated rate. For other cases, compensation may not exceed twice the regulated level.

This resolution takes effect on December 12, and will be implemented for five years.

VIR