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THE MINISTRY
OF PLANNING AND INVESTMENT
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SOCIALIST
REPUBLIC OF VIETNAM
Independence- Freedom- Happiness
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No.06/1999/TT-BKH
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Hanoi,
November 24, 1999
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CIRCULAR
GUIDING THE CONTENTS OF TOTAL INVESTMENT, DOSSIERS ON
INVESTMENT PROJECT EVALUATION AND INVESTMENT REPORTS
In execution of the provisions of the
Regulation on Investment and Construction Management issued together with the
Government's Decree No.52/1999/ND-CP of July 8, 1999 (hereafter referred to as
the Investment and Construction Management Regulation for short), the Ministry
of Planning and Investment provides the following guidance on the contents of
total investment, dossiers on investment project evaluation and investment
reports:
I. TOTAL INVESTMENT CAPITAL
1.1. According to Clause 7,
Article 7 of the Investment and Construction Management Regulation, the total
investment is the total investment and construction expenses (including the
initial production capital), which is also the maximum expense level of a
project determined in the investment decision.
1.2. Total investment:
a/ Capital for investment preparation includes
the expenses for:
- Investigation, survey and study in service of
the elaboration of pre-feasibility and feasibility study reports:
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- Project evaluation fee.
b/ Capital for preparation for investment
project execution includes the expenses for:
- Capital arrangement (in case of
foreign-capital borrowing accepted by the State Bank);
- Bidding for project execution and bid
consideration;
- Services on technical consultancy, consultany
in support of construction management, supervision and cousultancy;
- Technological transfer, initial technical
support;
- Construction design survey;
- Designing and evaluation of design;
- Making the total cost estimates and evaluation
of the total cost estimates;
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- Resettlement related to ground clearance
compensation incurred by the project (if any)
- Ground preparation;
c/ Capital for investment execution includes:
- Equipment expense;
- Construction and equipment installation
expense;
- Other expenses for:
+ Use of land surface and water surface
+ Training
+ Elaboration of the plan for fire and explosion
prevention and combat according to the regulations on fire prevention and
fighting;
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e/ Pre-acceptance test;
f/ Interests on the investor's loans during the time
of investment execution, which are determined through credit contract(s);
g/ Initial working capital for production (for
production projects) as stipulated by the Finance Ministry;
h/ Expenses for project insurance according to
the stipulations of the Finance Ministry;
i/ Reserves;
j/ Project management;
k/ Prescribed taxes;
l/ Evaluation and approval of the final account
settlement.
For a number of Group A projects with special
requirements permitted by the Prime Minister, the total investment shall also
include expenses for scientific and technological research related to the
project. The expense level shall be decided by the Prime Minister for each
project.
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a/ Changes in the investment and construction
prices due to the new regulations issued by the Government;
- Change in the electricity and water prices,
land rents and freights;
- Change in the labor cost;
- Change or addition of charges and taxes
b/ Change of the exchange rate between Vietnam
dong and foreign currency(ies), for project items using foreign currency(ies)
(if the total investment clearly states the amount of foreign currency(ies)).
c/ Force majeure cases, including:
- Objective force majeure cases such as natural
calamities, enemy sabotage, fires.
- Failure to ensure the capital mobilization
capability or to keep to the capital allocation schedule (for State budget
capital and State investment credit capital ), which is not due to the
investor's faults.
II. DOSSIERS ON INVESTMENT
PROJECT EVALUATION
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1. The investor's report to the Prime Minister,
if is a Group A project; or to the person competent to decide the investment,
if it is a Group B project (in case such Group B project requires a
pre-feasibility study report).
2. The pre-feasibility report, which is made
with the contents stipulated in Article 23 of the Investment and Construction
Management Regulation as well as the specific contents suitable to each
economic technical branch;
3. The effective legal documents certifying the
investors legal person status and financial capability;
4. The legal documents certifying the projects
conformity with the branch and local plannings;
5. The other legal documents related to the
project (if any).
B. Dossiers proposing the
evaluation of feasibility study reports (called as the feasibility report for
short) : A dossier proposing the evaluation of a project's feasibility study
report shall be considered valid if it fully meets the following conditions:
1. For Group A projects:
1.1. For non-BOT projects
a/ The investor's report to the Prime Minister;
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c/ The opinions of the direct managing agency
(the ministry, provincial/municipal People's Committee or chairman of the Managing
Board of the State corporation) to the Prime Minister, clearly, stating the
investment plan, its conformity with the planning, the project's contents,
remarks, assessments and proposals with regard to the investor and the project;
d/ The opinions of the relevant ministries,
branches and localities according to their respective functions and management
competence.
e/ The evaluation opinions of the investment
capital lending organization, for a project using loan capital, on the
project's financial efficiency, the capability of loan provision for the
project and the proposals on the project management mode when different capital
sources are used mixedly by the project;
f/ The effective legal documents certifying the
investor's legal person status and financial capability, and other necessary
documents such as the land use right certificate, the written approval of the
planning, the written permissions of the Government, agreements, contracts
and/or treaties (depending on the characteristics of each project);
g/ The feasibility report, which is made with
the contents stipulated in Article 24 of the Investment and Construction
Management Regulation, and contents suitable to each economic-technical branch.
The agency submitting the dossier for approval
shall take responsibility for the project quality.
1.2. For BOT projects.
a/ The reports of the investor and the competent
State agency;
b/ The feasibility report, which is made with
the contents stipulated in Article 24 of the investment and Construction Management
Regulation, and contents suitable to each economic-technical branch.
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d/ The already initialed contract;
e/ The sub-contracts (if any).
f/ The draft charter of the company, if it is a
newly set up company; or the supplemented charter of the company, if it is an
operating company;
g/ The effective legal documents certifying the
investor's legal person status and financial capability, and other necessary
legal documents such as the land use right certificate, the written approvals
of the competent State agencies, the written permissions of the Government,
agreements, contracts and/or treaties (depending on the characteristics of each
project).
h/ The opinions of the relevant agencies
investor organizations on matters falling under their competence or related to
their interests;
i/ The evaluation opinions of the investment
capital lending organization, for a project using loan capital, on the
project's financial efficiency, the capability of loan provision for the
project and the proposals on the project management mode when different capital
sources are used mixedly by the project;
The dossier proposing the evaluation of the
project's feasibility report shall be compiled by the investor for submission
to the investment deciding level and sent to the Ministry of Planning and
Investment for evaluation.
2. For Group B and C
projects:
2.1. For projects other than the BOT, BTO and BT
ones, the dossier shall include.
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b/ The opinions of the direct managing agency on
the investment plan, its compatibility with the planning, the project's
contents, remarks, assessments and proposals;
c/ The opinions of the relevant agencies
according to their functions and competence;
d/ The evaluation opinions of the investment
capital lending organization, for project using loan capital, on the project's
financial efficiency, capability of loan capital provision for the project and
proposal on the project management mode, when different capital sources are
used mixedly by the project;
e/ The effective legal documents certifying the
investor's legal person status and financial capability, and other necessary
documents such as the land use right certificate, the written approvals of the
planning by the competent agencies, the written permissions of the Government,
agreements, contracts and/or treaties (depending on the characteristics of each
project).
f/ The feasibility study report, which is made
in conformity with the provisions of Article 24 of the Investment and
Construction Management Regulation. The investment report, which is made, with
the contents defined in Section III of this Circular.
The agency submitting the dossier for approval
shall take responsibility for the quality of the feasibility report (or the
project's investment report).
2.2. For BOT projects of Groups B and C, the
provisions of Clause 1.2 above shall apply.
3. The investor shall take full
responsibility for the accuracy and legality of information, data and documents
attached to the project dossier.
The agencies directly managing the investor and
the relevant agencies shall take responsibility for their opinions on the
project.
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1. Projects which require only
the elaboration of investment reports include:
- Projects capitalized at under VND1 billion
each;
- Projects on the repair and/or maintenance
using non-business capital;
- Branches' projects with model designs and
technical criteria already ratified by the branch-managing ministries on the
basis of the overall planning for each region.
2. An Investment report's
contents include:
a/ The determination of investor:
It is necessary to determine the investor (State
agency, enterprise or individual), clarifying the following:
- The investor's legal person status (with
written certification on his/her/its legal person status);
- The investor's financial capability (with
written certification).
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- The explanation on the investment necessity;
- The project's development objectives: The
cultural, educational, agricultural, industrial and service objectives;
- The project's direct objectives (for a
production project, it is necessary to point out whether the products are to be
domestically consumed or exported, for profit making or for other purposes;
c/ Products or services: Explanation on the
types of products and services of the project.
d/ Forms of investment and capacity:
- Investment in construction, intensive
investment, upgrading, expansion or maintenance of the existing establishment;
- Determination of the capacity;
c/ Equipment and machinery: Their names,
quantity, origins and value must be stated clearly;
f/ Sources of the supply of fuels, semi-finished
products and other inputs.
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h/ The location and land area;
- The construction location and its
compatibility with the planning;
- The total land area, the site plan and
documents certifying the laud use right;
- The ground status and expenses for ground
clearance compensation (if any).
i/ The construction project items and volumes;
the major technical requirements of each item, forms and unit prices set by
branches and localities applicable to the project (for dwelling houses, schools
and infirmaries the Ministry of Construction's forms shall apply; for land
roads the Ministry of Communications and Transport's forms shall apply; for
irrigation, the Ministry of Agriculture and Rural Development's norms shall
apply).
j/ Investment capital:
+ Demand for investment capital: The investment
capital shall be calculated on the basis of the work volume and unit prices
(set by the ministries and localities) and divided for construction and
installation, equipment and other capital construction works (if any).
+ Investment capital sources:
The investment capital sources must be clearly
determined:
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+ Credit loan capital, or
+ Capital mobilized by the investor or contributed
by the people.
k/ Conclusions on the project:
- The economic and social efficiency;
- The debt repayment capability;
- The environment: The positive and negative
impacts
l/ Proposals on the preferential policies for
the project:
- Privileges during the investment execution;
- Post-investment privileges.
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In the course of implementation, if any
supplements and/or amendments arise, the ministries and localities and
requested to promptly report them to the Ministry of Planning and Investment
for adjustment.
MINISTER OF
PLANNING AND INVESTMENT
Tran Xuan Gia