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THE
MINISTRY OF FINANCE
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SOCIALIST
REPUBLIC OF VIET NAM
Independence - Freedom - Happiness
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No:
44/2003/TT-BTC
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Hanoi,
May 15, 2003
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CIRCULAR
GUIDING THE MANAGEMENT AND PAYMENT OF INVESTMENT CAPITAL AND
NON-BUSINESS CAPITAL OF INVESTMENT AND CONSTRUCTION NATURE BELONGING TO THE
STATE BUDGET CAPITAL SOURCE
Pursuant to State Budget Law No. 01/2002/QH11
of December 16, 2002;
Pursuant to the Government’s Decree No. 52/1999/ND-CP of July 8, 1999
promulgating the Regulation on Investment and Construction Management, the
Government’s Decree No. 12/2000/ND-CP of May 5, 2000 amending and supplementing
a number of articles of the Regulation on Investment and Construction
Management, promulgated together with Decree No. 52/1999/ND-CP of July 8, 1999
and the Government’s Decree No. 07/2003/ND-CP of January 30, 2003 amending and
supplementing a number of articles of the Regulation on Investment and
Construction Management, promulgated together with Decree No. 52/1999/ND-CP of
July 8, 1999 and the Government’s Decree No. 12/2000/ND-CP of May 5, 2000;
The Ministry of Finance hereby guides the management and payment of investment
capital and non-business capital of investment and construction nature
belonging to the State budget capital source as follows:
Part I
GENERAL PROVISIONS
1. This Circular shall apply to investment
projects funded with development investment capital or non-business capital of
investment nature belonging to the State budget capital source, which are
managed by the ministries, the ministerial-level agencies, the agencies
attached to the Government, political organizations, socio-political
organizations, social organizations, socio-professional organizations, State
corporations (hereinafter referred collectively to as ministries), the
provinces and centrally-run cities (hereinafter referred collectively to as
provinces), and rural or urban districts, provincial capitals and provincial
cities (hereinafter referred collectively to as districts).
This Circular shall not apply to projects funded
with commune budgets; investment projects of foreign-based Vietnamese
representation missions; security and defense projects with confidentiality
requirements; and copyright ownership purchase projects.
2. The State budget capital (including domestic
capital of different State budget levels, foreign capital borrowed by the
Government and foreign aid capital to the Government, the administrations at
all levels, and State agencies) shall be paid only for investment projects
eligible for using the State budget capital under the provisions of the State
Budget Law and the Regulation on investment and construction management.
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4. Non-business capital within the State budget
estimates (hereinafter referred to as non-business capital of investment nature
for short) shall only be allocated to projects for repair, renovation,
expansion or upgrading of existing material foundations in order to restore, or
increase the value of, fixed assets (including also the building of new
construction items in the existing establishments of administrative or
non-business agencies and units). Non-business capital shall not be allocated
to new investment projects.
5. The finance agencies at all levels shall
perform the financial management of investment capital and non-business capital
of investment nature belonging to the State budget capital source. The State
treasuries shall have to control and pay capital in a prompt, timely and lawful
manner for the projects which satisfy all conditions for capital payment.
Commercial banks which play the role of service
banks for projects using the official development assistance (abbreviated to
ODA) capital must comply with the Finance Ministry’s guidance on the financial
management of ODA projects, depending on their assigned functions and tasks.
Part II
SPECIFIC PROVISIONS
A. ELABORATION AND
NOTIFICATION OF PLANS ON PAYMENT OF INVESTMENT CAPITAL OR NON-BUSINESS CAPITAL
OF INVESTMENT NATURE
I. Projects shall be incorporated in the State’s
annual capital construction investment capital plans only if they satisfy all
the following requirements:
1. For planning projects: They must have
outlines or tasks as well as cost estimates for the planning work, which have
been approved by competent authorities.
2. For investment preparation projects: They
must be included in the approved branch and territorial development plannings,
have investment preparation permits and their cost estimates for the investment
preparation work must be approved by competent authorities.
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4. For investment execution projects: They must
have investment decisions issued by October of the year preceding the plan year
and their technical designs and total cost estimates must be approved by
competent authorities. Particularly for Group-A or Group-B projects, if their
technical designs and total cost estimates have not yet been approved, their
investment decisions must determine the capital level of each construction
item, and the designs and cost estimates of their construction items to be
built in a year must be approved by competent authorities. For Group-C
projects, there must be sufficient capital for their implementation within no
more than two years.
5. For projects invested with non-business
capital: if capitalized at VND one billion or more, they must complete the
investment procedures stated at Points 2, 3 and 4 above; if capitalized at
under VND one billion, their designs and cost estimates must be approved.
II. Elaboration of investment capital plans,
examination and notification of annual plans on payment of capital construction
investment capital:
1. For projects using investment capital: During
the time when the annual State budget estimate is drafted, basing themselves on
the project implementation schedule and objectives, investors shall make
investment capital plans of their projects and submit them to the superior
managing agencies for incorporation into the State budget estimate according to
the provisions of the State Budget Law.
For projects using non-business capital of
investment nature: Basing themselves on the agencies’ and units’ needs to
repair, renovate, expand and/or upgrade their existing material foundations,
investors shall make plans on investment expenditure with the non-business
capital source, then send them to the superior agencies for incorporation in
the State budget estimates according to the provisions of the State Budget Law.
2. The ministries shall synthesize and make
investment capital plans, then send them to the Ministry of Finance and the
Ministry of Planning and Investment.
The provincial People’s Committees shall
estimate the local budgets for investment capital plans, submit them to the
Standing Boards of the provincial People’s Councils for consideration and
comments before sending them to the Ministry of Finance and the Ministry of
Planning and Investment.
3. After the State budget estimates are decided
by the National Assembly and allocated by the Prime Minister:
3.1. The ministries (for centrally managed
investment capital) shall allocate and decide to assign investment capital
plans to projects under their respective management, which have completed all
investment procedures, ensuring their compatibility with the assigned norms on
total investment level; domestic and foreign capital structure; economic branch
structure; capital levels of the State’s important projects and compliance with
the National Assembly’s resolutions, the Government’s direction on the
materialization of annual socio-economic development plans and State budget
estimates.
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The provincial-level Finance and Pricing
Services shall have to join the provincial-level Planning and Investment
Services in planning the allocation of investment capital to each project under
the provincial management before reporting it to the provincial-level People’s
Committees for decision.
The district-level Finance Sections shall assume
the prime responsibility and coordinate with the districts’ functional bodies
in advising the district-level People’s Committees on allocating investment
capital to each project under the district management.
Particularly for projects to be invested with the
capital sources permitted to be left for the localities under the resolutions
of the National Assembly and decisions of the Government, they must also abide
by the provisions on investment objects and use purposes of each source of
investment capital.
After allocating investment capital to each
project, the provincial-level People’s Committees shall send the investment
capital plans to the Ministry of Finance; the district-level People’s
Committees shall send the investment capital plans to the provincial-level
Finance and Pricing Services.
3.3. The allocation of capital in the annual
plans to projects must comply with the following provisions:
- Projects must satisfy all conditions for being
eligible for incorporation in the investment capital plans as prescribed in
Section I, Clause A, Part II of this Circular.
- Compliance with the provisions at Points 3.1
and 3.2 above.
4. Examination and notification of annual plans
on payment of capital construction investment capital:
4.1. For centrally managed projects: After
allocating investment capital to each project, the ministries shall send the
investment capital plans to the Ministry of Finance for examination under the
provisions at Point 3.3 above.
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4.2. For projects under the management of the
provincial-level People’s Committees or district-level People’s Committees: If
the allocation plans fail to comply with the provisions at Point 3.3 above, the
provincial-level Finance and Pricing Services or district-level Finance
Sections shall send reports thereon to the provincial-level or district-level
People’s Committees for consideration and readjustment.
4.3. After the investment capital plans are
apportioned or comply with the provisions after being adjusted, the ministries,
the provincial-level or district-level People’s Committees shall assign plan
quotas to investors for implementation and concurrently send them to the State
treasuries where the projects’ accounts are opened for monitoring and use as
basis for capital control and payment.
4.4. Notification of investment capital payment
plans to each project:
Investment capital payment plans are those on
allocating capital to each project which is funded with the investment capital
source of the State budget and satisfies all the conditions stated at Point 3.3
above. The notification of investment capital payment plans shall be effected
as follows:
- For projects managed by the ministries, the
Finance Ministry shall notify the investment capital payment plans to the State
treasuries for use as basis for payment of capital to the projects, and
concurrently to the ministries for monitoring and coordinated management.
- For projects managed by the provinces or
districts, the provincial-level Finance and Pricing Services or district-level
Finance Sections shall notify the investment capital payment plans to the State
treasuries for use as basis for payment of capital to the projects and
concurrently to the managing branches for monitoring and coordinated
management. Pending the notification of the investment capital payment plans by
the provincial-level Finance and Pricing Services or district-level Finance
Sections, the State treasuries shall base themselves on the provincial-level or
district-level People’s Committees’ plan-assigning decisions to make temporary
payment of capital for the projects.
5. Investors must send the basic documents of
their projects to the finance agencies of different levels for examination and
notification of the plans on payment of investment capital for such projects,
including:
- The written approval of the outline or tasks
of the planning project; written permission for the investment preparation;
- The cost estimate for the planning work, the
investment preparation or project implementation preparation;
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III. Readjustment of annual investment capital
payment plans:
1. Principles:
- The ministries and localities shall review the
implementation progress and investment objectives of the projects in the year
so as to readjust the investment capital plans according to their competence or
submit them to the Prime Minister for adjustment, transfer the capital of
unimplementable projects to projects implemented ahead of schedule, with
uncompleted volumes or projects likely to be implemented ahead of plan in the
year.
- Before sending the plans on readjusting the
investment capital of each project to the finance agencies, the ministries and
localities shall work with the State treasuries to identify the capital amounts
under the annual plans already paid to the projects and the unused amounts due
to non-implementation.
2. The finance agencies at all levels shall
scrutinize and notify the readjusted investment capital payment plans to each
project as prescribed at Point 4, Section II, Clause A, Part II of this
Circular.
3. The time limit for readjusting annual
investment capital payment plans shall be December 31 at the latest.
B. PAYMENT OF INVESTMENT
CAPITAL AND NON-BUSINESS CAPITAL OF INVESTMENT NATURE
I. Opening of accounts:
1. For domestic capital:
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- The State treasuries shall guide investors how
to open accounts.
2. For foreign capital:
The investors (project management units) may
open accounts at service banks under the guidance of the Ministry of Finance
and the banks.
II. Basic documents of projects:
To serve the management and control of
investment capital payment, the investors (project management units) must send
to the State treasuries where they open accounts for payment the basic
documents of their projects (which need to be sent only once till the projects
finish investment, except where supplementation and/or revision are required),
including:
1. For planning projects:
- The competent authority’s written approval of
the outlines or tasks of the planning projects;
- The cost estimate for the planning work,
already approved by the competent authority;
- The decision approving the bidding result (for
cases of bidding), the decision designating the contractor or assigning tasks;
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2. For investment preparation projects:
- The competent authority’s written permission
to make the investment preparation;
- The cost estimate for the investment
preparation work, already approved by the competent authority;
- The decision approving the bidding result (for
cases of bidding), the decision designating the contractor or assigning tasks;
- The economic contract between the investor and
the contractor.
3. For project implementation preparation
projects
- The feasibility study report or investment
report and the competent authority’s investment decision. In addition:
For jobs not subject to bidding:
- The cost estimate for the project
implementation preparation work, already approved by the competent authority;
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- The economic contract between the investor and
the contractor.
For jobs subject to bidding:
- The decision approving the bidding result;
- The economic contract between the investor and
the bid-winning contractor (including documents enclosed with the economic
contract: the approved tentative bidding dossier; the anticipation of the bid
price, enclosed with the contractor’s detailed price list and conditions for
price changes (if any), general and specific terms of the contract).
4. For investment execution projects:
- The feasibility study report or investment
report and the competent authority’s investment decision (if not available at
the project implementation preparation stage);
- The total cost estimate enclosed with the
decision approving the technical design and the total cost estimate;
In addition:
For jobs not subject to bidding:
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- The contractor-designating decision (for
bidding packages valued at VND 100 million or more);
- The advance guarantees for ODA projects (at
the donor’s request stated in the agreement); for projects invested with
domestic capital but implemented by foreign contractors, advance guarantees
shall be required (for cases involving advance payment);
- The economic contract between the investor and
the bid-winning contractor. Particularly for imported equipment, the competent
authority’s written approval of the contract shall be required according to
current regulations.
For jobs subject to bidding:
- The decision approving the bidding result;
- The advance guarantees for ODA projects (at
the donor’s request stated in the agreement); for projects invested with
domestic capital but implemented by foreign contractors, advance guarantees
shall be required;
- The economic contract between the investor and
the bid-winning contractor (including documents enclosed with the economic
contract: the approved tentative bidding dossier; the anticipation of the bid
price, enclosed with the contractor’s detailed price list and conditions for
price changes (if any), general and specific terms of the contract).
Particularly for imported equipment, the competent authority’s written approval
of the contract is required according to current regulations.
For projects implemented in the form of
self-implementation, the basic documents shall include the feasibility study
report or investment report and the competent authority’s investment decision;
the total cost estimate and the decision approving the technical design and
total cost estimate; the competent authority’s decision permitting the project
to be self-implemented in the project investment decision. The implementing
units shall sign contracts by themselves for closely overseeing the investment
and construction, take responsibility before law for the quality and prices of
products and construction works.
5. For projects invested with non-business
capital:
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5.2. For projects capitalized at under VND one
billion, the basic documents include the cost estimate and the decision
approving the design and cost estimate; in addition:
For jobs not subject to bidding:
+ The contractor-designating decision (for
bidding packages valued at VND 100 million or more);
+ The economic contract between the investor and
the contractor.
For jobs subject to bidding:
+ The decision approving the bidding result;
+ The economic contract between the investor and
the bid-winning contractor (including documents enclosed with the economic
contract: the approved tentative bidding dossier; the anticipation of the bid
price, enclosed with the contractor’s detailed price list and conditions for
price changes (if any), general and specific terms of the contract).
For projects implemented in the form of
self-implementation, the basic documents shall include the cost estimate and
the decision approving the design and cost estimate; the competent authority’s
decision permitting the project to be self-implemented. The implementing units
shall sign by themselves contracts for closely overseeing the investment and
construction, take responsibility before law for the quality and prices of
products and construction works.
III. Advance capital and recovery of advance
capital
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1.1. Projects or bidding packages implemented in
the turn-key form or under EPC contracts (referred to as projects or bidding
packages implemented under EPC contracts for short):
- Advance capital for the procurement of
equipment shall depend on the payment tempo (as prescribed for advance capital
for equipment).
- For the remainder, the advance capital shall
be equal to 15% of the contract’s value but must not exceed the whole year’s
capital plan already arranged for these jobs.
1.2. Construction and installation projects or
bidding packages subject to bidding under package contracts or price adjustment
contracts:
- If the value of the bidding package is under
VND 10 billion, the advance capital shall be equal to 20% of the contract’s
value but must not exceed the annual capital plan already arranged for the
bidding package.
- If the value of the bidding package is between
VND 10 billion and under VND 50 billion, the advance capital shall be equal to
15% of the contract’s value but must not exceed the annual capital plan already
arranged for the bidding package.
- If the value of the bidding package is VND 50
billion or more, the advance capital shall be equal to 10% of the contract’s
value but must not exceed the annual capital plan already arranged for the
bidding package.
Where the arranged annual capital plan is lower
than the advance capital level prescribed above (the contract has not been paid
fully with the advance capital at the prescribed percentage), the State
treasuries shall continue to pay the advance capital in the following year’s
plan till the prescribed advance capital percentage is attained.
1.3. Equipment procurement bidding packages
(including imported equipment and domestically procured equipment):
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The advance capital shall be paid according to
the tempo of payment by the investor to the contractor that supplies, processes
or manufactures equipment as stated in the economic contract up to the time the
equipment is put into the investor’s storehouse (for equipment requiring no
installation) or is completely installed and tested before acceptance (for
equipment requiring installation).
1.4. For consultancy contracts:
The minimum advance capital level is 25% of the
value of the bidding package but must not exceed the annual capital plan
already arranged for the jobs requiring the hire of consultants.
1.5. For the ground clearance and compensation
work and several jobs covered with other expenses of the projects, which are
eligible for advance capital, the advance capital level shall be as required
but must not exceed the whole year’s capital plan already arranged for such
jobs. To receive advance capital, investors shall send to the State treasuries
where they open accounts, documents on each job: the approved compensation plan
and cost estimates for the compensation and ground clearance work; the
specialized agencies’ notices requesting the investors to make payment for the
fee for land allocation, the land use right transfer tax…; and the approved
cost estimates for the operation of the project management apparatus.
1.6. For urgent projects such as dyke building
and consolidation, flood control and drainage works, seeding projects, projects
for immediately overcoming flood or natural calamity consequences, the advance
capital level shall be equal to 50% of the assigned annual capital plan.
1.7. For projects invested with non-business
capital of under VND 1 billion, the advance capital level shall be equal to 30%
of the assigned annual capital plan.
2. Recovery of advance capital:
2.1. Projects or bidding packages implemented in
the turn-key form or under EPC contracts (referred to as projects or bidding
packages implemented under EPC contracts for short):
- The capital advanced for the procurement of
equipment shall be gradually recovered upon each payment for the completed
equipment volume (according to the following provisions on equipment).
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2.2. For installation and construction projects
or bidding packages under package contracts or price adjustment contracts, the
advanced capital shall be gradually recovered upon payment for the completed
volume according to the following provisions:
- Time for starting the recovery:
+ For bidding packages valued at under VND 10
billion: when 30% of the contract’s value is paid.
+ For bidding packages valued at between VND 10
billion and under VND 50 billion: when 25% of the contract’s value is paid.
+ For bidding packages valued at VND 50 billion
or more: when 20% of the contract’s value is paid.
- The advanced capital shall be fully recovered
when the bidding package receives payment for the completed volume, which is
equal to 80% of the value of the contract.
- If the advanced capital is not fully recovered
because the bidding package does not receive payment up to the above-prescribed
percentage and the project is not further incorporated in the plan or the
project implementation is suspended, the investor must explain to the State
treasury on the use of the advanced capital not yet recovered and concurrently
report such to competent authorities for handling.
- If the advance capital has been paid but the
bidding package cannot commence construction according to the schedule
prescribed in the contract, the investor must explain such to the State
treasury and repay the advanced capital amount.
2.3. Equipment procurement bidding packages:
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For equipment requiring no installation, after
they have been pre-acceptance tested and put into their storehouses, the
investors shall have to immediately send documents thereon to the State
treasuries for completion of the procedures for payment for the completed
equipment volumes and for full recovery of the advanced capital amount.
For equipment requiring installation, when
equipment has arrived at their storehouses, investors shall have to notify such
to the State treasuries for monitoring; when equipment has been completely
installed, the investors shall have to send documents thereon to the State
treasuries for completion of the procedures for payment for the completed
equipment volumes and for full recovery of the advanced capital amount.
In cases where the advance capital has been paid
but the investor, after the time limit prescribed in the contract has expired,
still receives no equipment, the investor shall have to explain such to the
State treasury and repay the advanced capital amount.
2.4. For consultancy contracts:
The advanced capital shall be recovered upon
each payment for the completed consultancy volume on the following principles:
- The time of recovery shall start upon payment
for the completed volume.
- The recovered capital amount shall be the paid
capital amount multiplied by (x) the advance capital rate.
2.5. For the ground clearance and compensation
work and several jobs covered with other expenses of the projects for which
capital has been advanced, the advanced capital shall be recovered upon payment
for the completed volume of such jobs.
2.6. For urgent projects such as dyke building
and consolidation, flood control and drainage works, seeding projects, projects
for immediately overcoming flood or natural calamity consequences, the advanced
capital shall be recovered when the paid capital reach 30% of the annual plan
and fully recovered when the paid capital reach 80% of the annual plan.
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2.8. The level of advanced capital to be
recovered for assorted contracts may be higher than the above-prescribed levels
if it is so unanimously requested by the investors and the contractors.
2.9. Where the capital advanced for several jobs
(such as compensation for ground clearance…) is, for force majeure
reasons, not yet paid to beneficiaries, the investors must deposit such amount
in the State treasuries or credit institutions, if interests arise, the total
interest amount must be fully remitted into the State budget.
2.10. For bidding packages or project jobs which
have received advanced capital according to the value of the contracts, if the
plan year has expired but the advanced capital has not yet been fully recovered
because the bidding packages have not yet received payment up to the prescribed
percentage, the recovery shall continue in the subsequent year’s plan and such
advanced capital shall not be subtracted from the subsequent year’s investment
capital payment plan.
3. Payment of advance capital:
Apart from the basic dossiers as specified in
Section II above, the investors (project management units) must send to the
State treasuries the written requests for advance investment capital and the
investment capital withdrawal vouchers.
The State treasuries shall check and disburse
capital to the investors and concurrently make payment on behalf of the
investors directly to the contractors or other beneficiaries.
4. For some big-value structures and
semi-finished products used in the construction, which need to be manufactured
beforehand in order to ensure the investment schedule, some special-type
supplies and supplies which need to be seasonally reserved as well as some
other jobs arising in the process of project implementation, if the investors
find it necessary to have more advance capital than the advance capital levels
prescribed above, they shall work with the State treasuries for consideration
and advance payment.
Such advanced capital shall be recovered upon
payment for the completed capital construction volume composed of the supplies
of the above types for which advance payment has been made.
5. For investment projects funded with foreign
capital or bidding packages subject to international bidding under credit
agreements signed between the Vietnamese Government and the donors, which
contain provisions on capital advance (objects eligible for capital advance,
conditions for and level of advance capital, recovery of advance capital),
which are different from the above-mentioned provisions, the provisions of the
donors shall apply.
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1. Payment for completed construction and
installation volumes:
1.1. The construction and installation volumes
completed in the form of contractor designation or project self-implementation
and eligible for payment shall be the performed volumes already pre-acceptance
tested stage by stage or every month under the signed contracts and satisfying
all the following conditions:
- The pre-acceptance tested volume must be
compatible with the construction drawing design (or construction technical
design) already approved and incorporated in the assigned annual investment
plan;
- Their detailed cost estimates have been
approved according to the current regulations on the State’s norms on unit
prices.
1.2. The construction and installation volumes
completed in the form of bidding or under EPC contracts and eligible for
payment shall be the performed volumes already pre-acceptance tested according
to the contracted schedule as follows:
- For package contracts and EPC contracts which
contain no provisions on the payment conditions, the volumes pre-acceptance
tested according to schedule shall be the volumes included in the signed
contracts (as prescribed for jobs subject to bidding at Point 4, Section II,
Clause B, Part II of this Circular), which are calculated according to the
bid-winning unit prices and incorporated in the assigned annual investment
plans.
- For price adjustment contracts and EPC
contracts which contain specific provisions on conditions, limits and scope of
adjusted jobs and items and the adjustment formulas, the volumes pre-acceptance
tested for payment shall be the pre-acceptance tested volumes and the values in
the signed contracts (as prescribed for the jobs subject to bidding at Point 4,
Section II, Clause B, Part II of this Circular), which are incorporated in the
assigned annual investment plans.
If there is any arising volume, larger or
smaller than the contracted volume, the volumes pre-acceptance tested for
payment shall be the volumes satisfying the specific conditions stated in the
contracts, calculated according to the bid-winning unit prices, not exceeding
the contract’s value, and incorporated in the assigned annual investment plans.
On the basis of the pre-acceptance tested
volumes, the investors and the contractors shall determine the contractual
implementation progress and make requests for payment therefor.
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- The record on the pre-acceptance test of the
completed construction and installation volume, enclosed with the statement on
the calculation of the value of the pre-acceptance tested volume;.
- The payment price bill;
- The written request for advance payment of
investment capital (if any);
- The investment capital withdrawal vouchers.
For the installation and construction volumes
completed in the form of bidding, the State treasuries shall make payment. on
the basis of the implementation progress determined by the investors and the
contractors on the basis of the contracts and the pre-acceptance tested
volumes. The investors and contractors shall take responsibility before law for
the quality and implementation progress.
1.4. For volumes arising beyond or outside the
contracts, there must be the competent authority’s written approval (if the
arising volume is subject to bidding) or the supplementary cost estimate (if
the arising volume is subject to contractor designation) already approved by the
competent authority.
2. Payment for completed equipment volumes:
2.1. The completed equipment volumes qualified
for payment shall be the equipment volumes satisfying all the following
conditions:
- The list of equipment must be compatible with the
investment decision and included in the assigned investment plan;.
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- Having been warehoused by the investor (for
equipment requiring no installation) or already installed and pre-acceptance
tested (for equipment requiring installation).
2.2. After the completed equipment volumes are
tested before acceptance, the investors shall send to the State treasuries the
payment-requesting dossiers, each comprising the following documents:
- The invoice-cum-delivery bill (for
domestically-procured equipment);
- The import document set (for imported
equipment);
- The general record on the pre-acceptance test
of the equipment in trial operation, for installed equipment; the warehousing
card (for enterprises) or the pre-acceptance test record (for non-business
units) for equipment requiring no installation;
- Transport, insurance, tax, warehousing charge
vouchers (if these charges are not yet included in the equipment prices);
- The payment list or payment price bill.
- The written request for advance payment of
investment capital (if any).
- The investment capital withdrawal voucher.
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3.1. The completed consultancy volumes eligible
for payment shall be the performed volumes already tested before acceptance,
which are included in the economic contracts and the assigned annual investment
plans.
3.2. After the completed volumes are
pre-acceptance tested, the investors shall send to the State treasuries the
payment-requesting dossiers, each comprising the following documents:
- The record on the pre-acceptance test of the
completed consultancy volume;
- The price bill or payment list;
- The written request for advance payment of
investment capital (if any);
- The investment capital withdrawal voucher.
4. Payment for other completed volumes:
Apart from the jobs for which consultants have
been hired, other jobs shall be eligible for payment when they acquire all the
following grounds to prove that they have been completed :
- For construction land allocation fee and land
use right transfer tax, there must be valid invoices or vouchers issued by the
collecting agencies.
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For the compensation and ground clearance work
involving the construction of works (including the building of houses for
relocation in service of ground clearance): it shall be eligible for capital
advance and payment like construction and installation projects or bidding
packages.
- For expenses for destruction and dismantlement
of architectural objects and for construction ground clearance, there must be
approved cost estimates, contracts and pre-acceptance test records.
- For expenses for the project management
apparatus, there must be cash plans, lists of expenses and related vouchers.
- For expenses for construction commencement,
pre-acceptance test, trial operation and inauguration, there must be approved
cost estimates and lists of expenses.
- For expenses for specialists, training of
technicians and production managers, there must be economic contracts and
approved cost estimates.
- For construction insurance premiums, there
must be insurance policies.
- For expenses for the works of planning,
investment preparation as well as project execution preparation, there must be approved
cost estimates, economic contracts, records on the pre-acceptance test of the
work volumes or reports on the work results. Particularly for the planning
work, there must be approved tasks of the planning projects.
5. Payment for projects funded with non-business
capital of investment nature:
- For projects capitalized at VND 1 billion or
more, the payment for the completed volumes shall comply with the investment
capital payment regime.
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+ The record on the pre-acceptance test of the
completed volume;
+ The detailed calculation of the value of the
volume eligible for payment;
+ The payment price bill or the list;
- The investment capital withdrawal vouchers.
6. Forms of payment:
Basing themselves on the investors’
payment-requesting dossiers (as stated at Points 1, 2, 3, 4 and 5 above),
within 7 working days after the receipt of complete and valid dossiers, the
State treasuries shall examine such dossiers, allocate capital to the investors
and concurrently make payment on behalf of the investors directly to the
contractors, and recover the advanced capital amounts according to regulations.
7. Where the projects have gone through all
investment procedures and been incorporated in the annual plans but the
investors have not yet received the plans nor been notified of the investment
capital payment plans, if they have an urgent need of capital for payment, the
following shall be complied with:
- For centrally managed projects: at the
proposals of the ministries, the Ministry of Finance shall consider and advance
capital under the annual plans to the projects. The advanced capital shall be
recovered upon the notification of the projects’ investment capital payment
plans.
- For locally managed projects, at the proposals
of the provincial-level Services, departments or branches, the provincial-level
Finance and Pricing Services (or the district-level Finance Sections) shall
consider and advance capital under the annual plans to the projects. The
advanced capital shall be recovered upon the notification of the projects’
investment capital payment plans.
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9. Investors must arrange enough capital in the
annual plans for purchase of construction work insurance. The State shall not
make payment to investors to cover damage and risk expenses which fall under
the insurance scope if investors fail to purchase construction work insurance
according to current regulations.
10. Annually, the State treasuries must transfer
into pre-settlement temporary-custody accounts 5% of the projects’ investment
capital payment plans (excluding ODA projects). The temporary-custody
percentage for each specific job shall be decided by the investors;
particularly for some special jobs (such as ground clearance compensation),
once payment dossiers are fully compiled, the investors may request payment up
to 100% of the annual plan already arranged for such jobs.
The capital under temporary custody shall be
fully notified after the authorities competent to approve settlements receive
the investment settlement reports and be paid after the settlements of
completed projects, sub-projects, component projects or project items are
approved according to regulations. The payment of the 5% capital amount under
temporary custody shall adhere to the following principles:
- If the approved settlement amount is bigger
than the capital amount already paid to the project (excluding the 5% capital
amount under temporary custody), full payment shall be effected according to
the settlement amount within the limit of the 5% capital amount under temporary
custody.
- If the approved settlement amount is smaller
than the capital amount already paid to the project (excluding the 5% capital
amount under temporary custody), the investors shall have to recover the
overpaid amount from the contractors for repayment to the State and the State
treasuries shall concurrently remit the projects’ 5% capital amount under
temporary custody into the State budget.
- If the approved settlement amount is equal to
the capital amount already paid to the project (excluding the 5% capital amount
under temporary custody), the State treasuries shall remit the projects’ 5%
capital amount under temporary custody into the State budget.
11. The capital amount paid to each job or
construction item must not exceed the cost estimate or the bid-winning price;
the total capital amount paid to a project must not exceed the approved total
cost estimate and total investment amount.
The capital amount paid to a project in a year
(including both advance capital and capital paid for completed volumes) must
not exceed the whole year’s capital plan already notified to the project.
12. For extremely important projects requiring a
capital-advancing and -paying mechanism other than the above provisions, after
receiving opinions of competent authorities, the Ministry of Finance shall
issue separate guiding documents.
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I. Reporting:
1. For investors:
- Periodically on the 5th of the first month of
every quarter, the investors shall have to make reports on the situation of the
investment execution and capital payment of their projects and send them to the
State treasuries and the finance agencies of the same level (for locally
managed projects). Particularly for Group-A projects, the investors shall send
such reports on the 20th of every month to the ministries or the provincial
People’s Committees, the Ministry of Planning and Investment and the Finance
Ministry for sum-up and reporting to the Prime Minister.
- At the end of the plan year, the investors
shall make reports on the execution of investment capital in the year to the
investment-deciding authorities, the State treasuries and the finance agencies
of the same level (for locally managed projects) on the 10th of January of the
subsequent year.
The reports on the execution of investment
capital in the year must analyze and appraise the situation of the plan
implementation and the investment results, problems and propose solutions
thereto.
- At the end of the plan year, the investors shall
draw up a table of comparison of the data on investment capital paid to each
project, regarding the amounts paid in the year and the cumulative paid amounts
from the construction commencement to the end of the State budget year, then
send them to the State treasuries for certification.
2. For the ministries and provincial-level
People’s Committees:
- On the 15th of the first month of every
quarter, the ministries and the provincial-level People’s Committees shall have
to synthesize the implementation of investment plans and the capital payment
for projects under their respective management and send reports thereon to the
Ministry of Finance, the Ministry of Planning and Investment, the Ministry of
Construction and the General Department of Statistics according to regulations.
- At the end of the plan year, the ministries
and provincial-level People’s Committees shall sum up the execution of
investment capital in the year and send reports thereon to the Ministry of
Finance, the Ministry of Planning and Investment, the Ministry of Construction
and the General Department of Statistics on the 20th of January of the
subsequent year.
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3. For the State treasuries:
- To implement the information and reporting
regime according to separate regulations of the Ministry of Finance.
- Upon the end of the plan year, the State
treasuries shall settle the use of investment capital with the finance agencies
of the same level according to the regulations on State budget settlement.
- Upon the end of the plan year, the State
treasuries shall certify the amounts paid in the year and the cumulative
amounts paid from the construction commencement to the end of the State budget
year for each project formulated by investors.
II. Settlement of investment capital:
1. Annual investment capital settlement
Upon the end of the plan year, the investors
shall make annual investment capital settlement reports according to a set form
in the accounting regime applicable to investing units, which is promulgated by
the Ministry of Finance.
2. Settlement of paid investment capital:
Upon the completion of construction items,
sub-projects, component projects or investment projects, the investors shall
have to make investment capital settlement reports; competent authorities shall
examine and approve such settlement reports according to the regulations on the
investment capital settlement regime.
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III. Inspection:
The ministries, the provincial-level People’s
Committees and the finance agencies shall conduct regular and irregular
inspections of investors and contractors participating in the projects
regarding their use of advance capital, capital paid for completed volumes and
observance of the State’s development investment finance policies and regime.
The finance agencies of all levels shall conduct
regular and irregular inspections of the State treasuries’ implementation of
the investment capital payment regime.
D. RESPONSIBILITIES AND
POWERS OF CONCERNED AGENCIES
1. Investors:
- To perform the functions and tasks assigned to
them according to the Investment and Construction Management Regulation. To
receive and use capital for the right purposes and right subjects in an
economical and efficient manner. To abide by law provisions on the financial
management regime in investment and construction.
- To be accountable for the accuracy and
lawfulness of the project’s completed volumes or implementation progress (for
cases where construction and installation bidding packages open for bidding)
when payment is made (such volumes must comply with the construction drawing
designs or construction technical designs and their qualities satisfy design
requirements); to ensure the accuracy, lawfulness and validity of data and
documents supplied to the State treasuries and the functional State bodies.
- When the capital construction volumes have
satisfied all the contractual conditions, to conduct timely pre-acceptance test
thereof, compile complete payment dossiers and payment requests for the
contractors within 10 working days after the contractors complete all payment
procedures..
- To report in time and fully as prescribed to
the investment-deciding bodies and concerned State bodies; supply fully
dossiers, documents and facts according to the regulations of the State
treasuries and finance agencies in service of the capital management and
payment work; to submit to the inspection by the finance agencies and the
investment-deciding bodies of the use of investment capital and observance of
the State’s development investment finance policies and regimes.
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- To request capital payment when they meet all
the conditions and request the State treasuries to reply and explain on matters
they deem unsatisfactory in the capital payment.
II. Ministries and provincial-level and
district-level People’s Committees:
- To guide, inspect and urge investors under
their respective management to carry out investment plans, receive and use
investment capital for the right purposes in accordance with the State’s
regimes.
- To report on the implementation of investment
plans according to regulations.
- Within the scope of their delegated
competence, to be responsible to the Government and the State’s laws for their
decisions.
III. State treasuries:
- The central State treasury shall prescribe the
procedures for investment capital payment for uniform application nationwide .
- To guide investors in opening accounts for
advance capital and capital payment.
- To examine and pay capital in time and fully
for projects which satisfy all conditions according to the prescribed schedule.
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- When detecting that decisions of competent
authorities are contrary to current regulations, to make written requests for
re-consideration and put forward proposals. If past the prescribed time limit,
no reply is made, to be entitled to settle the cases according to their
proposals; if a reply is made but deemed unsatisfactory, to settle the cases
according to the competent authorities’ opinions and at the same time to report
such to the higher-level competent authorities and finance agencies for
consideration and handling.
- To apply the regimes of information and
reporting and settle the investment capital and non-business capital of
investment nature belonging to the State budget’s capital source according to
the provisions of the State Budget Law and the guidance of the Finance
Ministry.
- To be entitled to request investors to supply
dossiers, documents and information according to the prescribed regime in
service of the capital payment control work.
- To be permitted to suspend capital payment or
recover capital amounts used by investors for wrong purposes or wrong objects
or in contravention of the financial management regime of the State and, at the
same time to report such to the Finance Ministry for handling;
- Not to participate in the Councils for
pre-acceptance test of completed capital construction volumes.
- To organize the capital control and payment
according to uniform professional processes, to simplify administrative
procedures while ensuring the strict capital management and making timely, full
and convenient payment to investors.
- Upon the end of the plan year, to certify the
amounts paid in the year and the cumulative amounts paid from the construction
commencement to the end of the State budget year for each project, give
comments on the observance of the capital construction process, unit price
norms, regimes and policies as prescribed.
- To be responsible to the Minister of Finance
and the State’s laws for the receipt and use of State budget capital and the
payment in investment and construction.
IV. Finance agencies at all levels:
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- To report on and settle development investment
capital in accordance with the State Budget Law.
- To coordinate with the functional agencies in
guiding and inspecting investors, related State treasuries and contractors
participating in carrying out projects in their observance of the development
investment finance regimes and policies, management, use and payment of investment
capital, so as to work out measures to handle cases of violation, issue
decisions to recover amounts spent at variance with the State’s regime.
- To be entitled to request the State treasuries
and investors to supply documents and information necessary for the State
management of development investment finance, including documents in service of
evaluation of investment projects and allocation of annual investment capital
plans, the reports on the plan implementation and the investment capital
execution according to the information and reporting regime, and documents in
service of examination of investment capital settlements as prescribed.
Part III
IMPLEMENTATION PROVISIONS
1. This Circular takes effect 15 days after its
publication in the Official Gazette and replaces the Finance Ministry’s
Circular No. 96/2000/TT-BTC of September 28, 2000 guiding the management and
payment of investment capital and non-business capital of investment and
construction nature belonging to the State budget capital source.
2. For other development investment expenditures
from the State budget (State reserve expenditures, expenditures in support of
enterprises’ working capital, expenditures for contribution of joint venture
shares, expenditures for loans to foreign countries and for foreign aid,
expenditures for development assistance funds), they shall comply with separate
guiding documents on each kind of expenditures mentioned above.
3. For investment projects funded with other
capital sources of the State, the payment principles prescribed in this
Circular shall also apply.
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FOR THE FINANCE MINISTER
VICE MINISTER
Nguyen Cong Nghiep