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VIETNAM
MINISTRY OF FINANCE
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SOCIALIST
REPUBLIC OF VIETNAM
Independence - Freedom - Happiness
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No. 76/2017/TT-BTC
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Hanoi, July 26,
2017
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CIRCULAR
AMENDMENTS AND
SUPPLEMENTS TO CIRCULAR NO. 54/2013/TT-BTC DATED MAY 4, 2013 OF MINISTRY OF
FINANCE, PRESCRIBING OPERATION AND MANAGEMENT OF CENTRALISED MUNICIPAL WATER
SUPPLY PROJECTS IN RURAL AREAS
Pursuant to the Law on Management and Use of
Public Property dated June 3, 2008;
Pursuant to the Government's Decree No.
52/2009/ND-CP dated June 3, 2009, elaborating and providing guidance on the
implementation of a number of Articles of the Law on Management and Use of
Public Property;
Pursuant to the Government’s Decree No.
117/2007/ND-CP dated July 11, 2007 on production, supply and consumption of tap
water; the Government’s Decree No. 124/2011/ND-CP dated December 28, 2011,
amending and supplementing several Articles of the Government’s Decree No.
117/2007/ND-CP dated July 11, 2007 on production, supply and consumption of tap
water;
Pursuant to the Prime Minister's Decision No.
131/2009/QD-TTg dated November 2, 2009 on several preferential and incentive
policies for investment for, management and operation of centralised municipal
water supply projects in rural areas;
Pursuant to the Government's Decree No.
87/2017/ND-CP dated July 26, 2017, defining the functions, tasks, powers and
organizational structure of the Ministry of Finance;
In order to implement the Prime Minister’s
Directive No. 35/CT-TTg dated December 27, 2016 on strengthened management,
enhancement of effectiveness in sustainable operation of centralised municipal
water supply projects in rural areas;
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The Minister of Finance of Vietnam hereby
promulgates the Circular on amendments and supplements to Circular no.
54/2013/TT-BTC dated may 4, 2013 of Ministry of Finance of Vietnam, prescribing
operation and management of centralised municipal water supply projects in
rural areas.
Article 1. Amendments and supplements to the
Circular No. 54/2013/TT-BTC dated May 4, 2013 of Ministry of Finance of
Vietnam, prescribing operation and management of centralised municipal water
supply projects in rural areas (hereinafter referred to as Circular No.
54/2013/TT-BTC)
1. Amending Article 11 as
follows:
“Article 11. Project management units
Depending on particular conditions regarding the
project scale, water supply and treatment technology, and socio-economic
characteristics of specific local areas, provincial People’s Committees shall
be mandated to decide on the following methods of project transfer:
1. Transferring projects to project management
units in the following order of precedence:
a) Enterprises whose charter capital is wholly
owned by the State;
b) Public service units;
c) Commune-level People’s Committees.
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2. Adding Article 12a as
follows:
“Article 12a. Determine the actual remaining value
of each project
1. The following types of project shall be subject
to the requirement concerning determination of the actual remaining value,
including:
a) Projects that have already been transferred to authorized
transferees (i.e. public service units; commune-level People's Committees;
cooperatives; enterprises that use state capital without investing such state
capital in other enterprises; enterprises allocated assets by the state without
being indebted to the State according to regulations), but are not run
effectively;
b) Projects that have not yet been transferred to
authorized transferees as of the date of entry into force of this Circular;
c) Projects received for further transfer purposes
as from the effective date of this Circular that are not documented or are
documented inadequately as required by law on investment and construction.
2. Provincial Departments of Agriculture and Rural
Development shall hire fully qualified entities or take charge of cooperating
with provincial Departments of Finance and other relevant agencies on setting
up Appraisal Boards to determine the actual remaining values and the remaining
useful life of projects (exclusive of value of land use right); submitting them
to Departments of Finance for their review before seeking approval decisions on
actual remaining values and the remaining useful life of projects from
Presidents of provincial People's Committees."
3. Amending point e of clause
2 of Article 12 as follows:
“e) Values or actual remaining values of projects
shall be determined under the regulatory provisions of Article 12a.”
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“g) With respect to projects transferred by going
through the formalities of appointment of enterprises receiving transferred
projects, repayment term and schedule shall be subject to Article 14a herein.”
5. Adding clause 4 to Article
13 as follows:
“4. Transferring projects to public service units
shall follow the commissioning, order placement or assignment methods
prescribed in the Government’s Decree No. 130/2013/ND-CP dated October 16, 2013
on production and supply of public products and services, and any other written
documents prescribing amendments or supplements thereto.”
6. Adding Article 14a as
follows:
“Article 14a. Carrying out regulatory procedures
for appointing enterprises to operate transferred projects
1. Appointing enterprises to operate transferred
projects shall be subject to regulatory provisions of law on bidding and
regulations laid down in clause 4 of this Article.
2. Bidders referred to in point b of clause 3 of
Article 3 herein must have business functions appropriate for management and
operation of projects.
3. Based on local budget appropriations available
for use, provincial People’s Committees shall consider issuing decisions to pay
in proportion to project value according to the following methods (this
requirement must be present in invitations for bid and contracts for transfer
of centralised municipal water projects in rural areas):
a) Pay promptly after successful bidding for
transfer contracts;
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4. Invitations for bid shall be subject to
regulatory provisions of law on bidding and must contain the following
information:
a) Method of operation or commercial use of the
project;
b) Value of each transferred project: Original cost
of the new project or the actual residual value of the project (calculated as
per Article 12a herein). This original cost is the contract price in relation
to which bidders may offer to pay higher or lower;
c) Method of payment of the winning bidder’s bid
shall be subject to clause 3 of Article 14a herein”.
7. Amending point a and b of
clause 3 of Article 14 as follows:
“a) For wholly state-owned enterprises
receiving transferred projects as per point a of clause 1 of Article 11 herein,
the procedures for transfer and receipt of projects; accounting for value of
the transferred projects shall be carried out according to the method of
recording of increase in state capital at enterprises under law.
b) For enterprises winning contracts, the following
actions shall be taken:
- Concluding contracts for transfer of projects
with competent regulatory authorities;
- Receiving, operating and managing projects by
employing the agreed-upon method;
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8. Supplementing clause 4 of
Article 15 as follows:
“4. Transferring projects to commune-level People’s
Committees shall follow the commissioning, order placement or assignment
methods prescribed in the Government’s Decree No. 130/2013/ND-CP dated October
16, 2013 on production and supply of public products and services, and any
other written documents prescribing amendments or supplements thereto.”
9. Supplementing point d and
e of clause 3 of Article 20 as follows:
“d) The original cost of a project transferred
through implementation of the bidding procedures is the winning bid.
e) The original cost of a project transferred in
case of determination of the actual remaining value of that project is the
actual residual value determined as per Article 12a herein.”
10. Amending point c of
clause 1 of Article 21 as follows:
“c) If the proposed price charged for consumption
of municipal water, subject to the competent state authority's decision, is
lower than the proposed input cost that is calculated correctly and completely
in accordance with regulations in force, the provincial People’s Committee
shall consider issuing the decision to use local budget appropriations or funds
of target programs (if any) to offset the deficit in order to protect
legitimate rights and interests of water supply enterprises (based on the
volume of municipal water consumed per m3)."
11. Supplementing point c of
clause 2 of Article 21 as follows:
“c) For projects transferred according to the
method of determination of the actual remaining value, the period of
depreciation of the project is the remaining useful life of these projects that
is determined as per Article 12a herein”.
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1. Provincial People’s Committees shall instruct
provincial Departments of Agriculture and Rural Development to cooperate with
other regulatory authorities in reviewing and assessing transfer of projects
and classifying these projects into the followings:
a) Transferred projects that are operating
effectively;
b) Projects that have already been transferred to
enterprises through state investment in enterprises or enterprises indebted to
the state in accordance with regulations in force;
c) Projects that have already been transferred to
authorized transferees (i.e. public service units; commune-level People's
Committees; cooperatives; enterprises that use state capital without investing
such state capital in other enterprises; enterprises allocated assets by the
state without being indebted to the State according to regulations in force),
but are not run effectively;
d) Projects that are not transferred to transferees
before the effective date of this Circular; projects that are received for
further transfer purposes as from the effective date of this Circular.
2. According to review or assessment results
specified in clause 1 of this Article, provincial Departments of Agriculture
and Rural Development shall cooperate with relevant regulatory authorities in
submitting project management plans to seek approval from provincial People’s
Committees according to the following principles:
a) Continue to transfer the projects specified in
point a and b of clause 1 of this Article to authorized transferees for their
management and operation thereof;
b) Carry out the procedures for withdrawal of the
projects specified in point c of clause 1 of this Article as per law on
management and operation of state assets, corporate and other relevant law when
these projects are transferred to authorized transferees;
c) After determining the actual remaining values of
specific projects referred to in point c and d of clause 1 of this Article,
transfer these projects in groups, not individually, in an area or region (e.g.
commune or district) according to planning proposals in order to ensure that
they are jointly operated in an effective manner.
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1. This Circular is entering into force as from
September 10, 2017.
2. Ministries, Ministry-level agencies,
Governmental bodies, People’s Committees of provinces and centrally-affiliated
cities and Heads of entities and units in charge of managing and operating
centralized municipal water supply projects in rural areas shall be responsible
for implementing this Circular.
3. In the course of implementation hereof, if there
is any issue that arises, entities, organizations, units and persons must give
the Ministry of Finance timely feedback to seek its solutions./.
PP. MINISTER
DEPUTY MINISTER
Huynh Quang Hai