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THE GOVERNMENT
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THE SOCIALIST REPUBLIC OF VIETNAM
Independence - Freedom - Happiness
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No. 57/2024/ND-CP

Hanoi, May 20, 2024

 

DECREE

ON MANAGEMENT OF DREDGING OPERATIONS WITHIN SEAPORT WATER AND INLAND WATER AREAS

Pursuant to the Law on Government Organization of June 19, 2015; Law on amendments to the Law on Government Organization and the Law on Organization of Local Governments dated November 22, 2019;

Pursuant to the Law on Environmental Protection dated November 17, 2020;

Pursuant to the Law on Marine and Island Resources and Environment dated June 25, 2015;

Pursuant to the Construction Law dated June 18, 2014; Law on amendments to the Construction Law dated June 17, 2020;

Pursuant to the Law on Bidding dated June 23, 2023;

Pursuant to the Law on State Budget dated June 25, 2015;

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Pursuant to the Law on Public Investment dated June 13, 2019;

Pursuant to the Law on Investment under Public-Private Partnerships dated June 18, 2020;

Pursuant to the Vietnam Maritime Code dated November 25, 2015;

Pursuant to the Law on Inland Waterway Traffic dated June 15, 2004 and the Law on amendments to the Law on Inland Waterway Traffic dated June 17, 2014;

At the request of the Minister of Transport;

The Government hereby promulgates the Decree on management of dredging operations within seaport water and inland water areas.

Chapter I

GENERAL PROVISIONS

Article 1. Scope

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Article 2. Regulated entities

This Decree shall apply to Vietnamese and overseas entities and persons involved in dredging operations related to maritime infrastructure and inland waterway infrastructure within seaport water and inland water areas.

Article 3. Interpretation of terms

For the purposes of this Decree, terms used herein shall be construed as follows:

1. “seaport waters” refers to an enclosed area of water used for forming the sea space facing against wharves, floating terminals, or used as turning basin, anchorage, transshipment, storm shelter, pilot embarkation or disembarkation, phytosanitary inspection area, navigational channel, and for construction of other auxiliary facilities.

2. “inland water area” includes inland waterways, channel protection corridors, water areas of inland water ports, inland wharves.

3. “dredging operation” refers to the use of mechanical and hydraulic equipment and instruments operating underwater to remove sediment and debris from bottom areas (dredged materials), which includes maintenance dredging, capital dredging, and emergency dredging.

4. “capital dredging” refers to the primary dredging for the purpose of creating a new water body or area to meet demands of use and operation thereof, or deepening or expanding the territory of an existing water body or area.

5. “maintenance dredging” refers to the dredging operation to maintain a work according to design parameters or standards, technical specifications announced by competent authorities.

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7. “navigation channel dredging” includes dredging of shipping channels and turning basins associated with navigable channels.

8. “emergency dredging” is an urgent task undertaken to address immediate issues or mitigate the consequences of unforeseen events such as natural disasters, accidents, navigational obstructions disrupting maritime and inland waterway traffic, or other force majeure incidents to ensure traffic and construction safety.

9. “dredged material” encompasses the entirety of substances obtained from dredging operations.

10. “dredging combined with product recovery” is a dredging operation that recovers dredged material.

11. “recovered dredged material” is the portion of dredged material that is recovered for use in accordance with an intended use and that has been approved or permitted by the competent authority.

12. Automatic Identification System (AIS) includes the following basic components: AIS device, AIS shore station, and AIS data center.

Chapter II

MANAGEMENT OF DREDGING OPERATIONS WITHIN SEAPORT WATER AND INLAND WATER AREAS

Article 4. Principles of dredging operations within seaport water and inland water areas

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2. Avoid carrying out dredging operations within seaport water and inland water areas which are likely to hinder vessels from sheltering in the flood season or in case of calamities that may occur.

3. Maintenance dredging of sea waters facing against wharves, harbors; waterways of inland ports and wharves, and dedicated channels of organizations and individuals shall only be carried out after the preparation and approval of economic and technical reports in accordance with construction law, Chapter II of this Decree, and relevant provisions of maritime law and regulations on the repair and renovation of inland ports and wharves.

4. Dredging operations using public investment capital must comply with the law on public investment.

5. Encourage and enable organizations and enterprises of all economic sectors to dredge, maintain, and invest in developing maritime and inland waterway infrastructure, and take responsibility for investment costs and effectiveness; enhance the role of organizations and enterprises in sharing the responsibility for investing in and maintaining national maritime and inland waterway infrastructure as part of port development projects.

6. Dredged material disposal sites (hereinafter referred to as disposal sites) may receive all or a portion of dredged material from projects and works within the province and neighboring provinces.

Article 5. Requirements concerning dredging, disposal and placement of dredged materials

1. Before carrying out dredging operations, the project owners shall notify their action plans (including such information as schedule, duration, progress, scale, type and quantity of dredging equipment, dredging forms, onshore or offshore disposal sites) to specialized regulatory authorities (e.g. regional maritime administrations and regional inland waterway administrations) and provincial People’s Committees where dredging projects are located, and installing project signboards near project sites. The project signboard must give information about the approval-granting authority, project owners, investors, project management units, supervisors, contractors, project scale, schedule, commencement time, completion time, funding sources, project implementation forms, onshore or offshore disposal sites.

2. Owners, stakeholders and investors in projects for dredging of navigable channels within seaport water and inland water areas shall be responsible for supervising dredging, disposal and placement of dredged materials from the beginning to the end of dredging operations, including but not limited to the following tasks:

a) Conducting the close supervision of dedicated dredging equipment in order to ensure dredging operations are carried out within the boundaries of the approved projects and in compliance with project designs;

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c) the management of dredging surveillance system data in order to meet demands of management, examination, surveillance;

d) Conducting the supervision of dredging operations to ensure conformance to safety, environmental protection and other requirements in accordance with legislative regulations in force.

3. Dredging equipment, dredged material carriers must be equipped with dredging surveillance equipment and comply with all operational requirements as stipulated by law.

4. Requirements of dredging surveillance systems:

a) Dredging surveillance equipment installed on dredging equipment:  must include AIS devices in order to provide information about positions of dredging equipment via AIS shore station to AIS data center;

b) Dredging surveillance equipment installed on carriers intended for transport and disposal of dredged materials must include AIS devices in order to provide information about courses, routes and journeys of these carriers via AIS shore station to AIS data center; cameras providing images of dredged material holds upon receipt of dredged materials along the route to dumping sites, and from the beginning to the end of disposal of dredged materials at the prescribed locations;

c) Dredging surveillance equipment must be fixed in the appropriate position on dredging equipment and dredged material carriers in order to facilitate recording of all necessary data and images, and must be designed with measures for preventing and controlling any impact that may falsify data (e.g., security lead or seal attachments, etc.), and ensure they work under continuous and stable conditions during the project execution period.

d) The cost of installing surveillance equipment on dredging equipment and carriers shall be borne by the contractor. The AIS shore station to AIS data center shall be either invested in or outsourced by the project owner or investor.

Article 6. Regulations on environmental protection

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Article 7. Regulations on dredged material disposal sites

1. Procedures for announcing onshore disposal sites

a) Every year, the Provincial People's Committee shall post information about the need to find disposal sites in the province on their website and at their headquarters.

b) The disposal site supplier shall send an application for disposal of dredged materials to the Provincial People's Committee in person, by post, or via the online public service system. The application includes: An application for disposal of dredged materials using the form specified in Appendix I to this Decree, a certified copy or an electronic copy certified from the original certificate of land use rights or documents permitting the use of land from competent authorities;

c) Within 30 days of receiving a complete application as prescribed in Point b of this Clause, the provincial People's Committee shall respond in writing to the applicant if they are qualified to dispose of dredged materials;

d) The Provincial People's Committee shall synthesize, list, and announce disposal sites, including sites proposed by entities and sites on state-managed land qualified to dispose of dredged materials. This announcement must be issued as a Decision and publicly posted on the website and at the headquarters of the Provincial People's Committee using the form specified in Appendix II issued with this Decree.

2. Announcement of offshore disposal sites

The Provincial People's Committee shall make, announce, and publicly post the list of offshore disposal sites (including sea areas beyond 06 nautical miles) on the website and at the headquarters of the Provincial People's Committee using the form specified in Appendix II issued with this Decree.

3. Procedures for approving onshore and offshore disposal sites

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b) Within duration of 30 working days, the Provincial People’s Committee shall send an approval for a given onshore or offshore disposal site to the project owner; in case of rejection, the Provincial People’s Committee shall send an explanation in writing.

c) The Provincial People's Committee shall send a notice to the disposal site supplier.

4. For approval for disposal sites for emergency dredging projects/works: Upon receiving an application from the project owner, within 3 working days, the Provincial People’s Committee shall send a response if they approve a disposal site for that project/work.

Article 8. Regulations on dredged material management

1. If dredged materials are disposed into an onshore disposal site approved by the Provincial People's Committee, the project owner and the disposal site supplier are not required to comply with the regulations on natural resources and minerals. Upon completion of the project/work, the project owner shall hand over the disposal site to the Provincial People's Committee or an entity authorized by the Provincial People's Committee to manage, retain, or dispose of dredged materials without polluting the surrounding environment.  If the disposal site is handed over to the mentioned entity, the project owner shall report the Provincial People's Committee on such handover as per regulations.

2. In case of offshore disposal, upon completion of the disposal operation, the project owner shall submit a report on the project's dredging, monitoring, and environmental surveillance activities to the competent authority that issued the offshore disposal permit and allocated the marine area.

Chapter III

DREDGING OF PUBLIC MARINE NAVIGATION CHANNELS, NATIONAL INLAND WATERWAYS, AND LOCAL INLAND WATERWAYS

Section 1. MAINTENANCE DREDGING FUNDED BY STATE BUDGET

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Maintenance dredging of public marine navigation channels is a public administration service that ensures maritime safety, while maintenance dredging of inland waterways is a public administration service that manages and maintains inland waterways funded by state budget from current expenditures and other legal sources.

Article 10. Assignment of tasks of implementation

1. Task assignment and budget allocation bodies:

a) The Ministry of Transport assigns maintenance dredging plans and gives budget allocations for maintenance dredging of public marine navigation channels and national inland waterways;

b) Provincial People’s Committees assigns maintenance dredging plans and gives budget allocations for maintenance dredging of local inland waterways, national inland waterways.

2. Regarding projects for maintenance dredging of public marine navigation channels, national inland waterways: Director of Vietnam Maritime Administration, Director of Vietnam Inland Waterway Administration shall exercise the authority delegated to the investment decision maker as per the construction law; Vietnam Maritime Administration, Vietnam Inland Waterway Administration shall exercise the authority delegated to the project owner as per the construction law.

3. Regarding projects for maintenance dredging of local inland waterways, national inland waterways under management of local governments (hereinafter referred to as inland waterways managed by provincial People’s Committees): The Provincial People’s Committee shall exercise the authority delegated to the investment decision maker and designate their affiliated entities to exercise the authority delegated to the project owner.

Article 11. Implementation forms

1. Maintenance dredging of public marine navigation channels and inland waterways which is funded by the state budget shall take the following forms: based on the actual dredging volume and based on the dredging quality.

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a) Decide the form of maintenance dredging of public marine navigation channels and national inland waterways;

b) Regulate in detail dredging based on the dredging quality, emergency dredging.

3. Provincial People’s Committees shall be authorized to decide the specific form of maintenance dredging of inland waterways in their provinces.

Article 12. Implementation procedures

Projects for maintenance dredging of public marine navigation channels and inland waterways funded by the state budget shall only require the preparation of an economic-technical construction report and be carried out by performing the following steps:

1. Preparing the maintenance dredging plan as outlined in Article 13 hereof.

2. Giving estimated state budget allocations as outlined in Article 14 hereof.

3. Following environmental protection procedures as prescribed.

4. Preparing, appraising, approving economic-technical construction report as outlined in Article 15 hereof.

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6. Carrying out the handover of the cleared project site, organizing inspection, surveillance, and management activities as outlined in Articles 17 and 18 hereof.

7. Performing the acceptance testing, making payments and fulfilling financial obligations as outlined in Article 19 hereof.

8. Complying with regulations on management of dredged materials as outlined in Article 8 hereof.

Article 13. Formulation of maintenance dredging plans

1. The Ministry of Transport shall prepare and approve maintenance dredging plans of public marine navigation channels and national inland waterways under their management in the annual maintenance plan.

2. The Provincial People's Committees shall prepare and approve maintenance dredging plans of inland waterways under their management in the annual maintenance plan.

Article 14. Assignment of estimated state budget spending tasks

1. Vietnam Maritime Administration and Vietnam Inland Waterway Administration shall prepare an estimate of state budget spending for submission to the Ministry of Transport for making a consolidated estimate of state budget expenditures in accordance with regulations in force.

2. In reference to the assigned estimate of state budget spending, the Ministry of Transport shall assign estimated state budget spending tasks to the Vietnam Maritime Administration and Vietnam Inland Waterway Administration.

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4. Provision of state budget expenditures for projects in maintenance dredging of public marine navigation channels and inland waterways shall be based on the approved plan for maintenance of maritime and inland waterway infrastructure; shall not need the economic-technical construction report or project cost estimate approved by a competent authority.

Article 15. Preparing, appraising, approving economic-technical construction report

1. The economic-technical construction report shall be prepared, appraised, and approved as per the construction law.

2. Construction design of economic-technical construction report shall be made on the basis of the topographical map giving the latest notice of depths of marine navigation channels and inland navigation channel in the year of preparing the economic-technical construction report or carrying out measurement survey. The dredging volume specified in the design includes the calculated volume based on the applicable technical standards and regulations for the project and the alluvial soil volume estimated from the date of the measurement survey giving the marine and inland navigation channel notice to the date of the measurement survey for handover of the cleared site.

Article 16. Selection of contractors

Project owners shall select contractors as per the law in force. Regarding maintenance dredging of public marine navigation channels, national inland waterways, Director of Vietnam Maritime Administration, Director of Vietnam Inland Waterway Administration shall exercise the authority of competent persons as per the bidding law.

Article 17. Handover of cleared project sites

Project owners shall conduct the measurement survey for determination of site land handover volume.  The measurement survey intended for handover of cleared project sites shall be carried out no more than 15 days before the project commencement date.  Site land handover volume shall be a basis for determination of the official contractual value.

Article 18. Inspection, supervision, and management of project execution

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Article 19. Project acceptance testing, payment, financial finalization

1. Project acceptance testing, payment, financial finalization shall be carried out based on the provisions of the signed contract, dredging volume which is accepted in compliance with the scope and requirements of the design; applicable design, construction, and acceptance standards and regulations for the project; the bidding documents, construction contract, legal regulations on cost management, construction contracts applicable to the project, and relevant legal regulations.

2. The project owner shall organize the acceptance of the construction phase (if applicable) and complete the project for commissioning in accordance with the regulations.

3. As for the maintenance dredging based on dredging quality, the project acceptance testing shall be carried out as follows:

a) Conducting the acceptance testing of completion of dredging project based on execution stage (6 months or 1 year);

b) Conducting the acceptance testing of completion of dredging project upon completion of contract duration;

c) The acceptance testing outlined in points a, b clause 3 of this Article shall be based on the dredging quality (not based on the dredging volume) and must be documented in a written report.

Section 2. DREDGING OF NAVIGATION CHANNELS, INLAND WATERS FROM OTHER LEGAL CAPITAL SOURCES

Article 20. Dredging of navigation channels, national inland waters

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Any organizations and enterprises that need to perform self-dredging of navigation channels, national inland waters (including capital dredging, maintenance dredging, and emergency dredging) using their own funds (without product recovery) shall submit directly or by post or through the online public service system 01 (one) application using the form specified in Appendix III issued herewith to the Ministry of Transport. Based on the approved strategies, plans, and capital mobilization solutions for the development of maritime and inland waterway infrastructure, and the availability of state budget funds for channel dredging, the Ministry of Transport shall review the application and issue an approval document within 15 (fifteen) days from the date of receipt of the application. If the application is rejected, the Ministry of Transport shall issue a response to the applicant with clear explanation.

2. The project execution process shall comply with the law on maritime, inland water areas and relevant legal regulations.

3. Organizations and enterprises shall follow dredging procedures specified in clauses 3, 4, 6, 7, and 8 of Article 12 of this Decree.

4. Inspection and surveillance shall be subject to Article 18 hereof.

5. Upon completion of the dredging works, the organization or enterprise shall conduct acceptance testing and handover of the completed project to the Ministry of Transport for management and utilization.

For a channel solely serving a single port investor, the Ministry of Transport shall consider approving the port operator to assume responsibility for annual maintenance dredging, ensuring adherence to the channel's established standards and technical specifications as published by the competent authority.

In case an organization or enterprise lacks the necessary resources to conduct maintenance dredging or are unable to continue performing maintenance dredging operations, they shall submit a report to the Ministry of Transport for evaluation and consideration of allocating state budget funds for maintenance dredging of the channel.

Article 21. Dredging of local inland waterways

1. Procedures for approval for applications for dredging of local inland waters.

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2. The project execution process shall comply with the law on inland waterways and relevant legal regulations.

3. Organizations and enterprises shall follow dredging procedures specified in clauses 3, 4, 6, 7, and 8 of Article 12 of this Decree.

4. Inspection and surveillance shall be subject to Article 18 hereof.

5. Upon completion of the dredging works, the organization or enterprise shall conduct acceptance testing and handover of the completed project to the Provincial People's Committee for management and utilization.

For a channel solely serving a single port investor, the Provincial People's Committee shall consider approving the port operator to assume responsibility for annual maintenance dredging, ensuring adherence to the channel's established standards and technical specifications as published by the competent authority.

In case an organization or enterprise lacks the necessary resources to conduct maintenance dredging or are unable to continue performing maintenance dredging operations, they shall submit a report to the Provincial People's Committee for evaluation and consideration of allocating state budget funds for maintenance dredging of the channel.

Chapter IV

DREDGING COMBINED WITH PRODUCT RECOVERY

Article 22. Dredging combined with product recovery

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2. Dredging of sea waters facing against wharves, harbors; waterways of inland ports and wharves; and dedicated channels combined with product recovery:

a) The owner of dredging project shall execute the project as per the investment and construction law, without following the procedures as outlined in Article 23 hereof;

b) The owner of dredging project carry out geological surveys, take samples to analyze the composition, physical and mechanical properties, and chemical properties of the dredged materials as per regulations in force.  Regarding recovered dredged materials, the relevant provisions of mineral and natural resource laws shall apply.

3. Do not auction the recovered dredged materials specified in Clauses 1 and 2 of this Article.

4. Regarding the non-recovered dredged materials of the projects specified in Clauses 1 and 2 of this Article, the provisions of Articles 7 and 8 of this Decree shall apply.

Article 23. Project execution procedures

1. Prepare and announce a list of projects in accordance with Articles 26 and 27 of this Decree.

a) The Ministry of Transport shall prepare and announce the list of projects managed by the Ministry of Transport;

b) The Provincial People's Committee shall prepare and announce the list of projects managed by the Provincial People's Committee.

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3. Select investors and sign project contracts in accordance with Articles 32, 33, 34, 35 hereof.

4. Execute the project contract, hand over the project, audit and settle investment capital in accordance with Articles 36, 37, 38, 39, 40, 41, 42 hereof.

Article 24. Regulatory authorities that have competence in executing projects (hereinafter referred to as project executing authorities)

1. As for projects included in the list announced by the Ministry of Transport.

a) For projects situated within the jurisdiction of a single province or centrally affiliated city (hereinafter referred to as province), the Provincial People's Committee where the project is located shall serve as the project executing authority).

a) For projects situated within the jurisdiction of at least two provinces, the Ministry of Transport shall solicit the opinions of the involved Provincial People's Committees and designate one Provincial People's Committee as the project executing authority based on the following criteria: evaluate the capacity and resources to execute the project; assess the potential socio-economic benefits;  consider the availability of suitable ports or harbors within the province capable of accommodating vessels with the specified tonnage in compliance with channel standards and specifications following project completion.

2. The Provincial People's Committee shall serve as the project executing authority included in the list announced by the Provincial People's Committee.

3. The project executing authority shall be accountable for carrying out Clauses 2, 3, and 4 of Article 23 hereof.

Article 25. Project costs

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a) Costs of formulation, assessment (if any), appraisal of feasibility study reports, approval for projects;

b) Costs of formulation, appraisal, approval for environmental impact assessment reports, offshore disposal permits, or environment permits or environment registration as per the environment law and relevant regulations;

c) Costs of selection of investors;

d) Overheads of competent authorities, representatives of competent authorities and project management agencies; costs of audit of final accounts of investment capital;

dd) Costs of hiring of consulting bodies giving support to certain operations within the scope of responsibilities of project management agencies;

e) Costs of organization of conferences, workshops, negotiation of project execution and other relevant contracts;

g) Dredging costs;

h) Costs of construction consultancy and other costs related to the project.

2. Costs referred to in clause 1 of this Article shall be covered by using the following funding sources:

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b) The costs specified in point c, clause 1 of this Article shall be covered by using current expenditures from the local budget to execute the project, revenue from selling bidding documents for selection of investors (if any);

c) If an investor is selected to execute the project, the costs incurred under points a, b, and c of Clause 1 of this Article shall be reimbursed by the selected investor based on the actual project executed costs approved by the competent authority. The costs reimbursed by the selected investor:

Regarding the costs specified in points a and b of Clause 1 of this Article: If the enterprise that proposes the preparation of the project feasibility report is also selected as the investor, reimbursement is not required; if the enterprise that proposes the preparation of the project feasibility report is not selected as the investor, the selected investor shall reimburse the proposing enterprise under the supervision of the project executing authority; if the project executing authority prepares the project feasibility report, the selected investor shall reimburse the costs by making payments to the local budget of the locality executing the project.

Regarding the costs specified in point c of Clause 1 of this Article: the selected investor shall reimburse the costs by making payments to the local budget of the locality executing the project;

d) The costs specified in points d, dd, e, g, h, Clause 1 of this Article shall be covered from the capital provided by the selected investor.

3. The agency assigned by the Provincial People's Committee to execute the project shall prepare a cost estimate for the items specified in points a, b, and c of Clause 1 of this Article and submit it to the Provincial People's Committee for consolidation into the local budget estimate in accordance with regulations in force.

Article 26. Preparation of project lists

1. For projects specified in Clause 1 of Article 24 of this Decree: During the first quarter of each year, the Vietnam Maritime Administration and the Vietnam Inland Waterways Administration shall compile a list of projects for the following year and submit it to the Ministry of Transport for review; the Ministry of Transport shall then seek feedback from relevant Provincial People's Committees and announce the project list.

2. For projects specified in Clause 2 of Article 24 of this Decree: During the first quarter of each year, the Provincial People's Committee shall formulate and announce the list of projects for the following year.

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a) Investment necessity;

b) Do not duplicate or overlap with projects that have already received investment policy approvals or project approval decisions or projects on maintenance of maritime or inland waterway works funded by the annual state budget that have already received the maintenance plan approval;

c) Have advantages compared to other forms of investment.

4. Circumstances for removing projects from the list:

a) Infeasible projects;

b) For projects that do not use state budget funds for investor compensation or for maintenance dredging projects using regular budget funds to compensate the investor: If the project of which the feasibility report is prepared by the investor is not approved within one year from the date of project list announcement, it will be removed from the mentioned list; if the project of which the feasibility report is prepared by the Provincial People’s Committee is not approved within two years from the date of project list announcement, it will be removed from the mentioned list;

c) For capital dredging projects using state budget funds for investor compensation: If the project feasibility report and its review process are not completed within one year from the date of project list announcement, the project will be removed from the list; if sufficient state budget funds are not allocated to compensate the investor for the project's cost differential, the project will be removed from the list; if the project is not approved within six months from the date of funding allocation, the project will be removed from the list;

d) If a suitable investor cannot be selected within six months from the date of project approval by the competent authority, the project will be removed from the list.

Article 27. Project list announcement

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2. For projects specified in Clause 2 of Article 24 of this Decree: The Provincial People's Committee shall announce the project list on its respective website annually before April 30th. The announced project list must include the following information: Project name, project location, project scope, project execution timeline; dredging standards; name and contact details of the provincial People's Committee as specified in Clause 2 of Article 24 hereof.

3. In the event of any modifications to the project list, the Ministry of Transport, provincial People's Committees, and relevant maritime and inland waterway management agencies shall follow the announcement procedures outlined in Clauses 1 and 2 hereof.

Article 28. Preparation of project feasibility report

1. Project feasibility report requested to prepare by the enterprise:

a) The enterprise shall submit a written request for the preparation of the project feasibility report, together with the enterprise registration certificate, financial statements for the two consecutive preceding years, and a report on the capacity to execute similar projects, to the project executing authority specified in Clause 3 of Article 24 of this Decree;

b) The project executing authority shall review and issue a written response approving or disapproving the enterprise's request to prepare the project feasibility report.  The content of the approval letter shall include the following: Name of the enterprise assigned to prepare the project feasibility report; deadline and location for submitting the project feasibility report; agency responsible for receiving the project feasibility report, carrying out the project appraisal and approval procedures; responsibilities and coordination methods of relevant agencies in guiding the enterprise in preparing the project feasibility report; other relevant matters;

c) The enterprise approved to prepare the project feasibility report shall do so in accordance with Article 29 hereof;

d) The enterprise preparing the project feasibility report shall bear all costs and risks if the project is not approved or if the project is approved but no investor is selected.

2. If no enterprise proposes to prepare the project feasibility report within 60 days after the announcement of the project list, the project executing authority shall review and decide on the preparation of the project feasibility report from the regular budget of the local government.

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Article 29. Contents of project feasibility report

The project feasibility report shall include the following main contents:

1. Investment necessity and advantages of investment compared to other investment forms.

2. Project's compliance with the sectoral and local socio-economic development planning.

3. Project objectives, scale, location; dredging volume; dredged material composition according to geological survey data; purpose and demand for dredged material utilization; volume of recovered products.

4. Project progress and execution timeline, including: contract duration and execution period.

5. Explanation of requirements for project management plan, technical plan, project quality standards, and disposal plan for non-recoverable dredged material (if applicable). Design documents comply with the construction law and other relevant laws.

6. Compensation and site clearance plan (if any).

7. Project execution costs (including costs specified in Clause 1, Article 25 hereof; taxes, fees, charges for granting mineral extraction right related to the project as prescribed; interests on loans for project execution, return on equity of investors); recovered product value determined in accordance with Article 41 hereof; intended use of state capital in the project (if any); payment plan for the difference between project execution costs and recovered product value.

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b) Return on investor's equity is calculated during the project's execution period and according to the return on equity framework of investors in the transportation sector prescribed by law on investment in the public-private partnership method.

8. Project financing capability.

9. Project risk analysis and risk management measures.

10. Forms of incentives (if any).

11. Socio-economic efficiency of the project; environmental impact assessment report in accordance with law on environmental protection.

Article 30. Appraisal of project feasibility report and project approval

1. The project executing agency shall conduct the appraisal of the project feasibility report and approve the project in accordance with the laws on construction, related laws, and this Decree.

2. For a project feasibility report prepared by the enterprise, the project executing agency shall conduct the appraisal of the project feasibility report within 30 days of receiving a complete and valid application in person or by post.

3. Prior to approving a dredging project combined with product recovery for maritime infrastructure, inland waterway infrastructure in the seaport water area and inland water area managed by the Ministry of Transport, the competent authority shall consult the opinions of the specialized management agency for maritime and inland waterways in accordance with the laws on maritime and inland waterways and the People's Committees of relevant provinces in case the project is located in the scope of at least 02 (two) provinces.

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Article 31. Project revision

1. A project is considered for revision under the following circumstances:

a) The project is affected by a force majeure event;

b) The emergence of factors that lead to greater financial and socio-economic efficiency for the project;

c) Modifications to relevant planning, policies, or laws that directly affect the project's objectives, location, or scope;

d) Failure to select an investor to execute the project.

2. The competent authority shall conduct the appraisal of the revised feasibility study report and approve the revised project in accordance with Article 30 of this Decree for the revised content.

Article 32. Investor selection

1. The competent authority shall conduct the investor selection process in accordance with the Bidding Law.

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3. In the event that no qualified investor is selected through the bidding process to undertake the project, the Ministry of Transport or the provincial People's Committee, under their competent authority, shall assess the project's criticality and, if deemed necessary, allocate state budget funds for project execution. The procedures for such execution shall follow the provisions of Chapter III hereof.

Article 33. Signing of project contract

1. The contract is signed based on the following documents: the decision approving the investor selection results, the contract negotiation outcomes, the bidding documents, the bids, the valid investor proposals.

2. The contracting agency is the project executing agency or the agency authorized by the project executing agency to sign a contract with the investor.

3. For joint venture investors, all joint venture members must directly sign and stamp (if any) the contract.

Article 34. Contents of project contract

1. Basic contents of project contract:

a) Information about the parties to the contract;

b) Project objectives, scale, and location; dredging volume and dredging volume adjustment plan, recovered product volume and recovered product volume adjustment plan; intended use of recovered products, treatment plan for non-recoverable dredged material (if any); project progress and execution time, including contract duration and execution duration; project progress and duration adjustment;

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d) Project execution costs are as prescribed in Clause 7, Article 29 hereof. For dredging costs, the dredging unit price shall be applied in the form of a fixed unit price. Plan to adjust project execution costs when adjusting dredging volume;

dd) Value of recovered products; payment value and payment method for the difference between the value of recovered products and the project execution cost; payment method and period;

e) Project execution fund sources, financial arrangement plans;

g) Construction site handover; compensation and site clearance (if any);

h) Design, execution, inspection, supervision, quality management, project acceptance testing, project finalization; project handover;

i) Contract performance security;

k) Rights and obligations of the parties to the contract; responsibilities for carrying out licensing procedures according to relevant laws;

l) Action plan in case of fundamental changes in circumstances in accordance with civil law to continue performing the contract; actions against violations during project execution; contract penalties;

m) Responsibilities of the parties related to information security; reporting requirements; provision of relevant information and documents, explanation of contract performance at the request of competent authorities, inspection, examination, audit and supervision agencies;

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o) Forms of incentives (if any);

p) Principles and requirements for amendments, termination of contract ahead of its scheduled expiry; rights and obligations of the parties upon contract liquidation;

q) Governing law of the contract and dispute resolution mechanisms;

r) Validity and duration of the project contract; contract amendment; contract termination;

s) Other contents as agreed upon by the parties to the contract to ensure compliance with legal regulations.

2. Documents attached to the project contract, including appendices and related documents, are an integral part of the project contract.

3. The investor shall remit to the local budget the project penalty fee in accordance with the project contract and as stipulated by law.

Article 35. Contract duration, contract performance security, contract amendment, contract termination

1. The project contract duration is agreed upon by the parties on the basis of the project's approval by the competent authority and the law on bidding.

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3. The project contract may be amended when the dredging project is adjusted and in other cases agreed upon by the parties in the contract in accordance with law.

4. Termination of the project contract

a) The project contract shall be terminated in accordance with the contract.

b) Termination of the project contract before the expiration date shall only be applied in the following cases:

The project is affected by force majeure events for which the parties have taken remedial measures but cannot guarantee the continued performance of the project contract;

For the benefit of the nation; to ensure national defense, national security, and protection of state secrets;

When the investor defaults in making payments in accordance with bankruptcy law;

When one of the parties to the contract seriously breaches the performance of the obligations stipulated in the contract;

In other cases due to fundamental changes in circumstances in accordance with the civil law.  The parties to the contract shall agree on the termination of the contract.

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1. Project execution shall commence upon the signing of the project contract and the completion of all required environmental, mineral resource procedures, and other procedures as mandated by regulations.

2. Investors shall either execute the project themselves or select consultants, execution contractors, and other contractors to carry out the project work, ensuring that these contractors meet the required qualifications as prescribed by law.  Investors shall be legally responsible for their decisions.

Article 37. Preparation of construction design following the fundamental design

1. The project executing agency shall determine the number of construction design phases when approving the project.

2. The investor shall prepare the construction design following the fundamental design and submit it to the contracting agency for agreement before approval.  Upon approval, the investor shall submit the contracting agency the construction design following the fundamental design for supervision and inspection.  Any changes to the construction design following the fundamental design must be approved in writing by the competent authority.

3. The preparation, verification of and approval for construction design following the fundamental design shall be carried out in accordance with the law on construction.

Article 38. Supervision of project contract performance

1. The investor shall be responsible for the quality and progress of the project and shall select independent consultants to supervise the environment, supervise the execution in accordance with the design, execution plan, and project contract. The investor shall approve the results of the selection of environmental and construction supervision consultants after obtaining the consent of the contracting agency.

2. The contracting agency shall supervise the investor's compliance with the obligations as stipulated in the project contract and the provisions hereof.  If necessary, the contracting agency may hire consultants to support the supervision of the project contract performance.

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4. For maritime channels and national inland waterways, before initiating the project execution, the contracting agency shall provide project documents to the Vietnam Maritime Administration and the Vietnam Inland Waterway Administration for coordination in management and inspection during project execution.

Article 39. Project handover

1. The investor shall be responsible for selecting independent consultants to conduct surveys for stage acceptance testing and project completion, audit the completed project settlement report; approve the results of the selection of independent consultants to conduct surveys for stage acceptance testing and project completion, audit the completed project settlement report after having the consensus of the competent authority.

2. The investor shall report to the contracting agency to organize the measurement survey, acceptance of the project execution results, and project handover.

3. Responsibility for organizing the measurement survey, acceptance of project execution results, and project handover:  the project executing agency shall be responsible for organizing the measurement survey, acceptance of the project execution results, and receiving handover from the investor; final settlement according to the project contract; project contract termination; handover to the Vietnam Maritime Administration, Vietnam Inland Waterway Administration for management of projects specified in Clause 1 of Article 24 hereof.

4. After receiving the project, the Vietnam Maritime Administration and the Vietnam Inland Waterway Administration shall organize the management, operation, and maintenance of the works in accordance with their functions and competence.

Article 40. Determination of recovered product value

1. The value of recovered product is determined as follows:

Recovered product value

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(equal to)

Volume of recovered product

x

(times)

Recovered product price

2. The price of recovered product is the resource tax price of the type of resource, resource product corresponding to the recovered product, promulgated by the People's Committee of the province where the project is located in accordance with the law on resource tax.

3. The volume of recovered product is the mass of the dredged material recovered from the project, based on the results of geological surveys.

Article 41. Principles for payment of the difference between project execution cost and the value of recovered products

1. If the project execution cost is less than the value of the recovered products, the investor shall be responsible for paying the difference into the budget of the locality where the project is executed. This difference shall not be lower than the value stipulated in the signed contract and annexes.

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a) For projects on maintenance dredging combined product recovery:  use the local budget to pay the difference.  This difference shall not be higher than the value stipulated in the signed contract and annexes. The agency assigned by the Provincial People's Committee to execute the project shall submit to the Provincial People's Committee a summary of the estimated project execution costs to be paid to the investor within the local budget of the project execution area in accordance with regulations. Payment shall be made to the investor after funds have been allocated from the local budget of the project execution area.

b) For projects on capital dredging combined product recovery:  use the state budget to pay the difference.  This difference shall not be higher than the value stipulated in the signed contract and annexes. The agency assigned by the Provincial People's Committee to execute the project shall submit to the Provincial People's Committee a summary of the estimated project execution costs to be paid to the investor within the state budget in accordance with the Law on Public Investment. Payment shall be made to the investor after funds have been allocated from the state budget.

Article 42. Audit and settlement of investment capital

1. The investor shall be responsible for arranging the audit of the project settlement report.

2. Project capital settlement is the process of determining the difference between the project execution cost and the value of recovered products after project completion, by the project executing agency and the investor in accordance with the law.  The project executing agency shall supervise the investor in fulfilling the rights and obligations as stipulated in the Contract.

Chapter V

STATE MANAGEMENT RESPONSIBILITIES

Article 43. Responsibilities of the Ministry of Transport

1. The Ministry of Transport shall carry out specialized state management of dredging operations in seaport waters and inland water areas in accordance with regulations in force.

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3. Exercise the rights and responsibilities of a delegated agency as prescribed.

4. Inspect, examine and handle violations in accordance with law for dredging operations in seaport waters and inland water areas.

5. Review, develop and complete the system of standards, technical regulations, unit prices, economic and technical norms related to dredging in seaport waters and inland water areas.

6. Direct specialized management agencies for maritime and inland waterways to coordinate with competent agencies during project execution and organize reception and handover after completion of dredging projects combined with product recovery for maritime infrastructure, inland waterway infrastructure in seaport waters and inland water areas under the management of the Ministry of Transport.

7. Provide detailed guidance on the inspection, supervision and organization of construction management for public maritime and inland waterway dredging works specified in Article 18 hereof and provide guidance on the criteria for selecting enterprises proposing to prepare feasibility reports specified in Clause 3 of Article 28 hereof.

Article 44. Responsibilities of the Ministry of National Defense

Organize the management of dredging activities in military port waters (for military and defense purposes).

Article 45. Responsibilities of the Ministry of Finance

Balance and allocate annual state budget capital to carry out maintenance dredging of public navigation channels and inland water areas (including information infrastructure for state management supervision) according to the proposal of the Ministry of Transport.

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1. Direct relevant agencies under the Ministry of Natural Resources and Environment to implement environmental protection regulations for dredging operations in public maritime and inland waterways as prescribed in this Decree.

2. Take the lead in developing and issuing technical guidelines for assessing, analyzing the composition, content, and volume of minerals for dredging projects and works in seaport waters and inland waterway areas.

Article 47. Responsibilities of the Ministry of Construction

Take the lead in developing and issuing standards and necessary conditions for the utilization of dredged products for filling and construction purposes.

Article 48. Responsibilities of the Ministry of Public Security

1. Maintain security and order in accordance with established regulations within the seaport waters and inland waterway areas where dredging operations are conducted.

2. Investigate and address security and order violations as per the regulations governing dredging operations in seaport waters and inland waterway areas.

Article 49. Responsibilities of the Provincial People's Committee

1. Provide guidance on the procedures, processes, and registration confirmation for the volume of recovered products for combined dredging and product recovery projects in seaport waters and inland waterway areas.

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3. Announce a list of onshore and offshore disposal sites within one year of the effective date of this Decree and This list should be updated annually before May 15th to reflect any changes in announced disposal sites.

4. Organize preliminary evaluations of the execution of combined dredging and product recovery projects for maritime infrastructure and inland waterway infrastructure within seaport waters and inland waterway areas.

Chapter VI

IMPLEMENTATION

Article 50. Entry into force

1. This Decree comes into effect on July 5, 2024, supersedes Decree No. 159/2018/ND-CP of November 28, 2018 of the Government.

2. Annul Article 11 of Decree No. 43/2018/ND-CP dated March 12, 2018 of the Government and Article 10 of Decree No. 45/2018/ND-CP dated March 13, 2018 of the Government.

3. Other legal provisions related to dredging operations in seaport waters and inland water areas that are contrary to the provisions hereof shall be implemented in accordance with this Decree.

Article 51. Transitional regulations

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a) Projects with execution period according to the approved maintenance plan for 2023-2024 or 2024 shall continue to be executed in accordance with Decree No. 159/2018/ND-CP of November 28, 2018 of the Government until the completion of the contract.

b) Projects with execution period according to the approved maintenance plan for 2024-2025 shall be executed in accordance with this Decree.  The Vietnam Maritime Administration and the public service provider ensuring maritime safety shall terminate the signed contract.

2. For projects on maintenance dredging of inland waterways that have been signed for consulting and dredging contracts before this Decree takes effect, they shall continue to be executed in accordance with Decree No. 159/2018/ND-CP of November 28, 2018 of the Government until the completion of the Contract.

3. For dredging projects combined with product recovery in seaport waters and inland water areas managed by the Ministry of Transport that have been approved by competent authorities to register investors to execute the project according to regulations before the effective date hereof but have not yet been approved by competent authorities to respond to the conditions for continued project execution in accordance with Clause 2 of Article 49 of Decree No. 159/2018/Nd-CP of November 28, 2018 of the Government, it is not necessary to select investors, the next steps are as follows:

a) Select the competent authority to execute the project in accordance with Article 24 hereof.

b) The Vietnam Maritime Administration (for dredging projects combined with product recovery in seaport waters), the Vietnam Inland Waterway Administration (for dredging projects combined with product recovery in inland water areas) shall hand over the original project dossier under their management to the competent authority to execute the project and notify the investor.

c) The project executing agency shall: require the investor to prepare a project feasibility report in accordance with Article 29 hereof; conduct the appraisal of the project feasibility report, if the appraisal result is feasible and the value of the recovered product is sufficient to offset the project execution costs, approve the project in accordance with clauses 1 and 3 of Article 30 hereof and sign a project contract with the investor; the contract content must meet the requirements in Articles 34 and 35 hereof. If the appraisal result is infeasible or the value of the recovered product is not sufficient to offset the project execution costs, terminate the project. The investor shall be financially responsible and shall not be reimbursed by the State for any costs related to the project.

The time limit for preparing and appraising a project feasibility report is 18 months from the date on which the project executing agency receives project dossier from the Vietnam Maritime Administration or the Vietnam Inland Waterway Administration.

d) Execute the project contract, hand over the project, audit and settle investment capital in accordance with Articles 36, 37, 38, 39, 40, clause 1 of Articles 41, 42 hereof.

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a) Select the competent authority to execute the project in accordance with Article 24 hereof.

b) The Vietnam Maritime Administration (for dredging projects combined with product recovery in seaport waters), the Vietnam Inland Waterway Administration (for dredging projects combined with product recovery in inland water areas) shall hand over the original project dossier under their management to the competent authority to execute the project and notify the investor.

c) The project executing agency shall require the investor to review and prepare a project adjustment proposal dossier according to the contents specified in Article 29 hereof and conduct the appraisal of the project adjustment proposal dossier.  If the dossier is assessed as feasible and the value of the recovered products is sufficient to offset the project execution costs, continue to implement in accordance with point d, dd of this clause.  If the dossier is assessed as infeasible or the value of the recovered products is not sufficient to offset the project execution costs, the project shall be terminated.

The time limit for preparing and appraising the adjusted project proposal is 12 months from the date the project executing agency receives the project dossier from the Vietnam Maritime Administration, the Vietnam Inland Waterway Administration.  If after the above deadline, the project adjustment proposal dossier prepared by the investor does not meet the contents specified in Article 29 hereof, the project shall be terminated.

In case of project termination, the investor shall be financially responsible and shall not be reimbursed by the State for any costs related to the project.

d) The project executing agency shall approve the project adjustment, sigs a project contract with the investor, and the contract content must meet the requirements in Articles 34 and 35 hereof.  In the case of a project that has been signed before the effective date hereof, the project executing agency, the Vietnam Maritime Administration (for dredging projects combined with product recovery in seaport waters), the Vietnam Inland Waterway Administration (for dredging projects combined with product recovery in inland water areas) and the investor shall sign a 3-party Contract Appendix, the Vietnam Maritime Administration and the Vietnam Inland Waterway Administration shall transfer all rights, obligations and responsibilities for the performance of the Contract to the project executing agency, and the investor shall perform the Contract in accordance with the Contract and the signed Contract Appendix.

dd) Execute the project contract, hand over the project, audit and settle investment capital in accordance with Articles 36, 37, 38, 39, 40, clause 1 of Articles 41, 42 hereof.

5. For dredging projects combined with product recovery in seaport waters and inland water areas managed by the Ministry of Transport that have been approved by competent authorities to meet the conditions for continued project execution in accordance with Clause 2 of Article 49 of Decree No. 159/2018/ND-CP of November 28, 2018 of the Government, it is not necessary to select investors, the next steps are as follows:

a) Select the competent authority to execute the project in accordance with Article 24 hereof.

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c) Based on the adjusted project dossier that has been approved by competent authorities to meet the conditions for continued project execution in accordance with Clause 2 of Article 49 of Decree No. 159/2018/ND-CP dated November 28, 2018 of the Government, the project executing agency shall review the project execution costs, the value of recovered products, and the payment plan for the difference between project execution costs and the value of recovered products in accordance with Clause 7 of Article 29 hereof.  If the value of recovered products is sufficient to offset the project execution costs, continue to implement in accordance with points d and dd of this clause.  If the value of recovered products is not sufficient to offset the project execution costs, the project shall be terminated.

The time limit for reviewing and approving project adjustments is 12 months from the date the project executing agency receives the project dossier from the Vietnam Maritime Administration or the Vietnam Inland Waterway Administration.

In case of project termination, the investor shall be financially responsible and shall not be reimbursed by the State for any costs related to the project.

d) The project executing agency shall approve the project adjustment, sigs a project contract with the investor, and the contract content must meet the requirements in Articles 34 and 35 hereof.  In the case of a project that has been signed before the effective date hereof, the project executing agency, the Vietnam Maritime Administration (for dredging projects combined with product recovery in seaport waters), the Vietnam Inland Waterway Administration (for dredging projects combined with product recovery in inland water areas) and the investor shall sign a 3-party Contract Appendix, the Vietnam Maritime Administration and the Vietnam Inland Waterway Administration shall transfer all rights, obligations and responsibilities for the performance of the Contract to the project executing agency, and the investor shall perform the Contract in accordance with the Contract and the signed Contract Appendix.

dd) Execute the project contract, hand over the project, audit and settle investment capital in accordance with Articles 36, 37, 38, 39, 40, clause 1 of Articles 41, 42 hereof.

6. For dredging projects in seaport waters combined with product recovery included in the list announced by the Ministry of Transport in accordance with Decree No. 159/2018/ND-CP of November 28, 2018 of the Government, the implementation shall be as follows:

a) Select the competent authority to execute the project in accordance with Article 24 hereof. The project execution procedure shall be in accordance with Article 23 hereof, and it is not necessary to perform the work that has been completed before the effective date hereof.

b) The Vietnam Maritime Administration shall: hand over the original project dossier under its management to the project executing agency to continue the project execution. For signed project consultancy contracts, the Vietnam Maritime Administration, the project executing agency and the consultant shall sign a 3-party Contract Appendix, in which the Vietnam Maritime Administration shall transfer all rights, obligations, and responsibilities under the Contract to the project executing agency and pay the costs for the work performed to the consultant at the time of handover in accordance with the Contract.

Article 52. Implementation

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ON BEHALF OF GOVERNMENT
PP. PRIME MINISTER
DEPUTY PRIME MINISTER




Tran Hong Ha

 

 

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