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THE
MINISTRY OF CONSTRUCTION
THE STATE PLANNING COMMITTEE - THE MINISTRY OF FINANCE
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SOCIALIST
REPUBLIC OF VIET NAM
Independence - Freedom – Happiness
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No:
03-TT/LB
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Hanoi,
January 25, 1995
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INTER-MINISTERIAL CIRCULAR
GUIDING THE IMPLEMENTATION OF THE STATUTE ON THE MANAGEMENT
OF INVESTMENT AND CONSTRUCTION, ISSUED TOGETHER WITH DECREE No.177-CO ON THE
20TH OF OCTOBER 1994 OF THE GOVERNMENT
On the 20th of October 1994, the
Government signed Decree No.177-CP promulgating the Statute on the Management
of Investment and Construction (Statute on the Management of Investment and
Construction 177-CP for short) as a substitute for the Statute on Capital
Construction issued together with Decree No.385-HDBT on the 7th of November
1990 (Statute on Capital Construction 385-HDBT for short), and the Statute on
the Drawing Up, Examination and Approval of the Designs of Construction
Projects issued together with Decree No.237-HDBT on the 19th of September 1985
of the Council of Ministers.
In execution of Article 3 of the
Decree, and Article 59 of the Statute on the Management of Investment and
Construction 177-CP, the Ministry of Construction, the State Planning Committee
and the Ministry of Finance hereunder guide the implementation of some main
issues (outside the guidance on separate issues for the concerned ministries):
1. Scope of
regulation of the Statute on the Management of Investment and Construction
177-CP comprises:
- Investment projects for branch
development;
- Investment projects for
regional and territorial development;
- Investment projects for
socio-economic development;
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Depending on the ownership
nature of the investment project, the scope of regulation of the Statute on the
Management of Investment and Construction 177-CP is defined as follows:
+ With regard to the investment
projects not under State ownership, the State shall manage only the
construction plan, the architectural plan, the technology, the utilization of
land and natural resources, the protection of the ecological environment, and
the social aspects of the project.
+ With regard to the investment
projects under State ownership, besides the management of the same aspects as
in the investment projects of the non-State economic sector, the State shall
also manage the commercial and financial aspects, and the economic efficiency
of the project.
The State-owned investment
projects comprise all the projects of which the investor (or his
representative) is appointed by the competent authorities of the State, to
manage the whole or part of the investment capital of the project raised from
whatever source.
+ The following investment
projects shall come under separate guidance of the Ministries in charge of the
branches after reaching agreement with the Ministry of Construction, the State
Planning Committee and the Ministry of Finance:
- The investment projects of
Vietnamese representations abroad;
- Some investment projects
involving national secrets of the security and national defense services.
2. On the
classification of projects and the assignment of powers to decide on investment:
2.1 In the appendix on the
classification of projects issued together with the Statute on the Management
of Investment and Construction 177-CP, the total investment of the projects
does not include the rent for the right to use land, water surface, sea area,
continental shelf and airspace.
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2.3. Assignment of powers to
decide on investment:
The assignment of powers to
decide on investment shall be effected according to Article 6 of the Statute on
Management of Investment and Construction 177-CP. The authorities, which are
assigned by the Prime Minister the authority to decide on the investment, shall
not reassign this power to its lower level to decide on the investment.
3.
Management of the utilization of the sources of investment capital:
The management of the
utilization of the sources of investment capital shall be effected under
Article 8 of the Statute on Management of Investment and Construction. It
consists of the following:
3.1 The preferential credit fund
coming from the State budget used for investment includes domestic capital and
outside capital in the form of State loans. It is integrated in the common
sources of the budget, for repayment when the debt is due.
3.2 The capital raised by the
State businesses for investment comprises the capital deducted from the funds
of the businesses, the loans in the form of the issue of bonds, stocks,
depreciation charge from the fixed assets formed by the supplementary capital
procured by the businesses themselves..., including the existing assets of the
State businesses. The investor has the responsibility to comply with all the
regulations concerning State management stipulated in the Statute on the
Management of Investment and Construction.
3.3 The service capital of a
capital construction character, such as the capital for maintenance, upgrading,
repair and transformation, must be used for the right purpose and must be
recorded in the annual State plan. The drawing up and submission for approval
of the project, technical design, total cost estimate, capital allowances, and
accounts and final settlement of accounts in regard to this source of capital,
must comply with the Statute on the Management of Investment and Construction
177-CP and the various guidance documents of the State.
It is forbidden to use the
service capital without a capital construction character to invest in new
constructions or in expansion.
4. On the
planning of prospection, survey and planning work:
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In case the State assigns a
ministry or branch to organize the implementation, the State Planning Committee
shall allocate the fund for this ministry or branch from the annual budget
plan.
4.2 The plan for capital allocation
for the investment prospection, survey, planning and drawing up of plan for
branch development shall be provided with capital for realization by the State
Planning Committee on the basis of comparing it with the plans of other
branches.
4.3 The plan of capital
allocation for the urban prospection, survey and planning shall be proposed by
the locality to the Ministry of Construction, so that it can incorporate into
the common program in the country. The State Planning Committee shall make the
overall fund allocation and allocate the powers of management according to the
following regulation:
4.3.1. In the prospection and
survey for general urban planning from the provincial capital upward, the State
Planning Committee shall directly allocate budget fund to the Ministry of
Construction and communicate it to the localities.
4.3.2. The prospection, survey
and detail planning in the urban centers from the Category 2 upward, and the
urban centers crossed by national communication lines, shall be placed under
the management of the Ministry of Construction, and shall be allocated funds
from the annual State budget for realization.
4.3.3. The prospection, survey
and planning for general and detailed planning of urban area centers under the
provincial capital level, and detailed planning for the urban centers and
provincial capitals under Category 2, shall be managed and realized by the
localities themselves and provided with the annual budget sources.
4.4. In the prospection, survey
and planning and for the drawing up of rural plans and programs through the
State level programs and plans, the State Planning Committee shall allocate
funds for realization to the ministries and branches which are a signed by the
State to preside over these programs and projects.
5. On the
construction of the auxiliary quarter and the temporary dwellings of
construction workers:
The necessity to build and
auxiliary quarter or the temporary dwellings of the construction workers must
be clearly set forth in the feasibility report of the project for the competent
authority to approve when deciding to invest. This shall comply with the
following regulations:
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5.2. In case of assignment of
contractor, the authority deciding the investment shall authorize the
construction of the auxiliary quarter and temporary dwellings of workers, but
there must be a detailed expenditure plan and a package contract on these
expenditures.
5.3. With regard to the
expenditures in the construction of temporary dwellings of the construction
workers, the projected expenditures should not exceed 2% of the estimated
construction and assembly cost, and should apply only to the newly started
constructions far from population centers and to those constructions built
along roads or communication lines (such as roads, main canals, power lines,
forestry tracks). They shall not apply to the constructions in the cities,
towns, townships and other population centers.
5.4. These expenditures shall be
allocated by installments during the period of preparation for the construction
in the package contract mode. The construction and assembly unit is allowed to
use this allocation according to the set purpose. The saving from the
construction expenditures of the temporary dwellings of the construction
workers can be incorporated into the welfare fund of the unit. The savings from
the construction fund for the auxiliary units quarter can be incorporated into
the fund for production development of the unit.
6.
Expenditures for formulation and evaluation of investment projects:
6.1. The level of allocation for
consultancy in the formulation and evaluation of the project shall be decided
by the Ministry of Construction after consulting the State Planning Committee
and the Ministry of Finance. For the time being, the allocation for project
evaluation shall represent 5% of the designing cost.
6.2. If after evaluation the
project cannot be realized, the expenditures for consultancy and in project
formulation and evaluation shall be deducted from the production development
fund of the investor unit (if the project belongs to a business), or covered by
the budget (if the project belongs to an administrative or public service
agency).
7. Bidding,
selection of contractor, assignment of contractor:
7.1. The projects of which the
State is the investor must organize bidding or selection of contractor
according to the regulations issued by the State.
7.2. The Ministry of
Construction has the responsibility to manage and guide the bidding, the
selection of contractor, selection of construction and assembly consultant, as
stipulated in Item 4, Article 6 of the Statute on the Management of Investment
and Construction 177-CP: With regard to the projects in Group A, the State
Bidding Examination Council shall expertise the bidding results of the
ministries and localities, and submit them to the Prime Minister for
ratification.
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+ Projects of a research or
experimental character,
+ Projects of an urgent character
due to natural calamities or enemy sabotage;
+ Projects of small value under
500 million VND (including the value of equipment and construction and
assembly... within the already approved total investment of the project);
+ With regard to a number of
projects of a special character and belonging to some branches, they must get
the permission of the Prime Minister for each project before the assignment of
contractor can be effected.
7.4. With regard to the projects
of cooperation and joint ventures with foreign countries undertaken by the
State-owned businesses, they must also organize bidding or selection of
contractor according to the regulations of the State or international practice,
with consideration for the practical conditions of Vietnam. The bidding shall
be organized in Vietnam.
7.5. Annually, on the 31st of
December at the latest, the Ministries and the People's Committees in the
provinces and cities must have a written report on the implementation of the
bidding, the selection of contractors and assignment of contractors within the
years from their Ministries or localities to the Ministry of Construction so
that it can draw up a general report to the Prime Minister.
8.
Management of construction technique and quality and test on completion.
8.1. The management of the
construction techniques and quality shall be effected according to the
regulations of the Statute on Management of Construction Project Quality issued
by the Minister of Construction.
8.2. The test on completion of a
construction project shall be effected under the "Statute on Test on
Completion of Construction Projects" issued by the Ministry of
Construction.
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9.1. With regard to the bidding projects
or selection of contractor, the fund allocation and payment shall be effected
through the regulations in the current Statute on Bidding or Selection of
Contractor of the State.
9.2. In case of assignment of
contractor, the allocation of fund and payment shall be effected according to
the current regulations of the State, and according to the contracts signed
between A and B.
In the ending year of the
project, the investor can allocate or loan at most 95% of the value of the
volume already realized under the yearly plan. The remaining 5% must be repaid
immediately after the investor has accomplished his duty of warranting the
project, as stipulated by the Ministry of Construction.
10.
Checking and ratifying the final statement of accounts:
The checking and ratification of
the final statement of accounts must be effected according to Article 36 of the
Statute on the Management of Investment and Construction 177-CP and the guiding
circular of the Ministry of Finance. The checking and ratification shall be
based on the following grounds:
- In case of bidding or
selection of contractor, this must be based on the price of the winning bid and
the terms in the contract.
- In case of assignment of
contractor, payment shall be based on the minutes of test on completion of the
volume and the approved estimated cost, according to the Circular guiding the
formulation and management of the prices of the investment projects of the
Ministry of Construction, and the related regimes and policies applicable to
the project (construction).
11. On the
regime of account reporting and statistics:
In the process of the
realization of investment, the investors of all economic sectors must observe
the regime of accounts report issued by the Ministry of Finance, and the
statistics report issued by the General Statistics Department.
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12.1. Elaboration and submission
of investment projects for ratification:
12.1.1. With regard to the
projects accompanied by the economic and technical feasibility study, or
economic and technical report which have been submitted for ratification prior
to the 20th of October 1994 (including those pending ratification), there is no
need to write the feasibility study as stipulated in the Statute on the
Management of Investment and Construction 177-CP, but the assignment of powers
to decide on investment (with regard to the economic and technical blueprint,
the economic and technical reports which have been submitted but not yet
ratified), and the subsequent steps such as survey, technical design and total
cost estimate still have to be effected as stipulated in the Statute on the
Management of Investment and Construction 177-CP.
12.1.2. After October 20, 1994
all investment projects must formulate these documents and submit them for
ratification to the authority deciding on investment, as stipulated in the Statute
on the Management of Investment and Construction 177-CP.
12.2. On the expertise and
ratification of design and total cost estimate:
12.2.1. All the dossiers on
technical design, total cost estimate and detailed estimates which have been
formulated and submitted for ratification prior to October 20 1994 (whether
already ratified or not yet ratified) there is no need to reformulate as
stipulated in the Statute on the Management of Investment and Construction
177-CP, but the assignment of powers for ratification with regard to the
dossiers not yet ratified shall be effected according to the Statute on the
Management of Investment and Construction 177-CP.
12.2.2. The expertise and
ratification of the technical designs of the projects submitted for ratification
after the 20th of October 1994 shall have to be effected according to the
Statute on the Management of Investment and Construction 177-CP stipulated in
Articles 25 and 26 concerning the management of designs, which stipulates that
the authority shall ratify the technical design only after expertise by the
specialized agency. This agency shall be selected by the ratifying authority
which may be the Design Expertise Council composed of qualified experts for the
expertise of each aspect or the whole of the design blueprint, or a qualified
consultant agency may be picked to expertise the project as provided for by the
Ministry of Construction.
12.2.3. The expertise and
ratification of the total cost estimate of the projects under State ownership
and which are submitted for ratification after the 20th of October 1994 shall
be effected according to the Statute on the Management of Investment and
Construction 177-CP stipulated in Article 51 (on the management of the total
cost estimates of State-owned projects), which stipulates that the authority
shall ratify the total cost estimate only after expertise by the specialized
agency. With regard to the projects in Group A, the Ministry of Construction
shall sponsor the expertise of the total cost estimate and submit it to the
Prime Minister shall empower the Minister of the controlling branch to ratify
it. With regard to the projects in Groups B and C, the specialized agency
assigned by the ratifying authority must be an agency having the function of
State management, or the Expertise Council for total cost estimates.
12.3. On the control and
ratification of final statement of accounts:
12.3.1. All the projects
accompanied by dossiers of control and ratification of final statement of
accounts which were controlled and ratified before the 20th of October 1994
(including already ratified dossiers), shall not have to observe the
stipulations on the contents and the assignment of powers for ratification, as
provided for in the Statute on the Management of Investment and Construction
177-CP.
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12.4. On the change to the forms
of organization for management in the realization of the projects defined in
Chapter V (from Article 43 to Article 48) of the Statute on the Management of Investment
and Construction 177-CP:
The Managing Boards of the
projects which have changed to the following forms of organization of
management of the realization of the projects:
12.4.1. With regard to the
Managing Boards of independent projects or projects of a size equivalent to
those in Group A and B, and the Managing Boards of the present regional
projects, the authority deciding the investment shall have to be reorganized
into the form of "Chief Manager of Project" stipulated in Article 45
of the Statute on the Management of Investment and Construction 177-CP.
The form of "Chief Manager
of Project" is the form which determines clearly individual responsibility
throughout the process of investment and construction.
The Chief Manager of Project is
assisted by a Project Managing Board.
This Board must have a small and
effective personnel able to act as the center in the organization, formulation,
elaboration and submission for ratification of investment, technical design and
total cost estimate; in the management of the process of implementation of
investment until test on completion, hand-over, and payment and final statement
of accounts of the project, through the signing of contracts with the agencies
of consultancy, material and equipment supply and construction organizations,
aimed at specializing each domain and job ensuring the quality and efficiency
of the process of investment and construction. The Project Managing Board shall
not directly replace the function of the consultant organization.
The Chief Manager of Project and
the Project Managing Board shall be appointed by the authority deciding the
investment.
12.4.2. The Managing Boards of
projects of a size equivalent to projects in Group C belonging to State-owned
businesses, shall be reorganized by the authority deciding the investment, in
order to change to the form of "direct management of the implementation of
the project by the investor" as stipulated in Article 44 of the Statute on
the Management of Investment and Construction 177-CP.
In this form, there is no need
to set up separate managing apparatus, but the investor shall use his existing
apparatus to carry out the signing of contracts with the consultant
organizations, construction companies, and material and equipment supply
agencies, and also the payment and statement of accounts, on the basis of the
certification by the consultant agencies supervising and managing the
construction of the project.
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In the localities, the People's
Committees of the provinces and cities directly under the Central Government
shall have to reorganize in order to change to the form of "Chief Manager
of Project" in each region.
In the ministries having
investment projects to be built on the same site in a province or city, if a
Project Managing Board has been set up for each project, they must be
reorganized in order to change to the form of "Chief Manager of
Project" according to each area.
In case the projects lie
scattered in the same province or city, a Project Managing Board shall be set
up to change to the form of "direct management of the project
implementation by the investor".
12.4.4. The allocations of fund
for the activities of all the forms of management of project implementation
shall comply with the guidance of the Ministry of Construction.
- The deadline for the
completion of the reorganization of the Project. Managing Boards mentioned
above shall not be later than the end of the third quarter of 1995.
12.4.5. With regard to the
projects which are in the process of hand-over, or payment or final statement
of accounts, or which shall as scheduled be completed before the third quarter
of 1995, the existing Managing Boards shall continue to discharge their
responsibilities until all the assigned tasks have been accomplished.
In the process of the
reorganization of the Managing Boards of the projects, the Ministries,
localities and units have the responsibility to send reports on the situation
of the implementation to the Ministry of Construction for the compilation of a
general report to the Prime Minister.
MINISTER
OF CONSTRUCTION
Ngo Xuan Loc
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MINISTER
OF FINANCE
Ho Te