THE MINISTRY OF FINANCE
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SOCIALIST REPUBLIC OF VIET NAM
Independence - Freedom - Happiness
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No. 12/2017/TT-BTC
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Hanoi, February 10, 2017
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CIRCULAR
GUIDANCE ON THE PROCEDURES FOR PROVISION OF FUNDING FOR
EQUIPMENT OF ENVIRONMENTAL PROTECTION PROJECTS
Pursuant to Decree
No.19/2015/ND-CP dated February 14, 2015 by the Government prescribing the
implementation of a number of articles of the Law on Environmental Protection;
Pursuant to Decree No.
215/2013/ND-CP dated December 23, 2013 by the Government prescribing the
functions, duties, power and organizational structure of the Ministry of
Finance;
Pursuant to Decision
No. 78/2014/QD-TTg dated December 26, 2014 by the Prime Minister on the structure
and operation of Viet Nam Environmental Protection Fund;
In implementation of
Document No. 8774/VPCP-KTTH dated October 14, 2016 by the Office of the
Government on funding sources used to provide 10-percent funding of the total
capital for equipment of environmental protection projects.
At the proposal of the
Director General of the Department of Finance;
The Minister of
Finance promulgates a Circular giving guidance on the procedures for provision
of funding for equipment of environmental protection projects in Decree No.
19/2015/ND-CP dated February 14, 2015 by the Government prescribing the
implementation of the Law on Environmental Protection.
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1. Scope:
This Circular guides the
procedures for provision of funding for environmental protection projects that
apply inventions under the protection of the government in the form of issuing
the Patent for Inventions or Patent for Utility Solution (hereinafter referred
to as “Projects”) as specified in Clause 3, Article 42 of Decree No.
19/2015/ND-CP dated February 14, 2015 by the Government prescribing the
implementation of the Law on Environmental Protection (hereinafter referred to
as “Decree No.19/2015/ND-CP”).
2. Regulated entities:
Organizations and
individuals related to projects specified in Clause 1 of this Article.
Article
2. Eligible funding recipient, conditions for receiving funding, level of
funding
1. Eligible funding
recipient:
The project investor.
2. Conditions for
receiving funding:
To be provided with
funding, a project:
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b) must be launched,
evaluated, approved or granted the Investment Registration Certificate if one
is required by law.
c) has been completed,
commissioned and has a financial statement; and
d) has undergone test run
and fulfills all conditions for normal operation.
3. Level of funding:
Funding shall be equal to
10% of the total capital invested in equipment of an environmental protection project
according to Project Investor's finalization report which has been approved
after being audited by an independent auditing company which is run according
to Vietnam’s law.
Article
3. Funding body
Viet Nam Environmental
Protection Fund (VEPF), affiliated to the Ministry of Natural Resources and
Environment (MONRE).
Article
4. Sources of funding
State Budget for
environmental protection shall cover the funding for environmental protection
projects carried out annually as specified in the provisions in Section a,
Clause 2, Article 7 Decision No.78/2014/QD-TTg dated December 26, 2014 by the
Prime Minister on the structure and operation of VEPF (hereinafter referred to
as “Decision No. 78/2014/QD-TTg”) and provisions in Section a, Clause 2 Article
5 Circular No. 132/2015/Circular-BTC dated August 28, 2015 by the Ministry of
Finance guiding the financial management mechanism of VEPF (hereinafter
referred to as “Circular No. 132/2015/Circular-BTC”).
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Funding for a project
shall be a lump-sum and non-repayable grant.
Article
6. Plan to request funding
1. The Project Investor
shall submit the first application for funding, including:
a) The application form,
including information on:
- The project investor;
- Project:
+ Project Name;
+ Project location;
+ Total investment;
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Commencement and
completion time of the project;
Beginning and ending time
of test run, when the project satisfies all conditions for normal operation.
Funding duration (year);
Requested amount of
funding.
b) Approval decision or
the Investment Registration Certificate, enclosed with project dossier.
c) The Patent for
Inventions or Patent for Utility Solution applied in the Project (authenticated
copies).
The above three documents
shall be sent one time. In case of adjustments to the project, Project Investor
shall submit additional documents.
2. On the basis of the
first application provided for in Clause 1 of this Article of the Circular,
VEPF shall follow the instructions in Section a, Clause 2, Article 7 Decision
No.78/2014/QD-TTg and instructions in Section b, Clause 3, Article 17 Circular
No.132/2015/TT-BTC.
Article
7. Application for funding
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1. Document requesting
funding in which the amount of funding requested is stated clearly;
2. The project’s
financial statement has been made, approved and audited by an independent
auditing company which is run according to Vietnam’s law. The statement shall
state the list, quantity and type of equipment, standard, technical
specification and the prices of the equipment.
3. Documents on the
result of the test run and a document certifying that the project is suitable
for the patent for invention or patent for utility solution by competent
authority and that the project meets all conditions for normal operation.
Article
8. Procedures for funding provision
Within seven working days
from the day of receipt of sufficient application for funding specified in
Article 7 of this Circular, VEPF shall provide funding for the project.
Article
9. Rejection of applications for funding
VEPF shall reject the
application for funding for a project that:
1. is not regulated by
this Circular as specified in Article 1;
2. is not an eligible
funding recipient specified in Clause 1 Article 2;
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4. fails to submit the first
application specified in Clause 1 Article 6; or
5. fails to submit the
application for funding specified in Article 7.
In case the application
is rejected, a written notification shall be sent to the Project Investor (The
Ministry of Finance and MONRE included) which clearly states reasons for
rejection and the amount of funding rejected.
Article
10. Handling the difference between funding received from State Budget and
funding provided
1. In the cases where the
funding provided by VEPF is lower than funding received: The remainder shall be
returned to State Budget.
2. In the cases where the
funding received is lower than the funding provided: VEPF shall report the
cases of insufficient funding to MONRE, which will transfer them to the
Ministry of Finance. Then the Ministry of Finance shall request a competent
authority to consider.
3. In the cases where the
funding is rejected: Total funding shall be returned to State Budget.
Article
11. Reporting
VEPF shall report to the
Ministry of Finance (Department of Investment) and MONRE on the transfer of
funding for Projects (Using Appendix 06 issued together with Decree No.
132/2015/TT-BTC).
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Pursuant to Provisions in
Clause 2 Article 5 Decision No.78/2014/QD-TTg, VEPF shall carry out inspection
of funded projects and report to MONRE and the Ministry of Finance.
The Ministry of Finance
shall conduct surprise inspections of the implementation of this Circular.
Article
13. Implementation clause
This Circular comes into
effect from March 27, 2017. Difficulties arising in the process of
implementation of this document should be immediately reported to the Ministry
of Finance.
ON BEHALF OF THE MINISTER
DEPUTY MINISTER
Huynh Quang Hai