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THE
MINISTRY OF CONSTRUCTION
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SOCIALIST
REPUBLIC OF VIET
NAM
Independence
- Freedom - Happiness
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No:
12/2000/TT-BXD
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Hanoi,
October 25, 2000
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CIRCULAR
GUIDING THE MANAGEMENT OF INVESTMENT EXPENDITURES ON THE
CONSTRUCTION OF INFRASTRUCTURE PROJECTS UNDER PROGRAM 135
Pursuant to the Government’s Decree No.15/CP
of March 4, 1994 stipulating the functions, tasks, powers and organizational
structure of the Ministry of Construction;
Pursuant to the Prime Minister’s Decision No.135/1998/QD-TTg of July 31, 1998
ratifying the program for socio-economic development in mountainous, deep-lying
and remote communes which meet with great difficulties (called Program 135 for
short); and Decision No.197/1999/QD-TTg of September 30, 1999 on the management
of the program for construction of mountainous and highland commune clusters
centers;
Pursuant to Joint Circular No.416/1999/TTLT/BKH-UBDTMN-TC-XD of April 29, 1999
of the Ministry of Planning and Investment, the Committee for Ethnic Minorities
and Mountainous Areas, the Ministry of Finance and the Ministry of Construction
guiding the management of investment in and construction of infrastructure
projects in mountainous, deep-lying and remote communes which meet with great
difficulties;
After consulting the Ministry of Planning and Investment, the Committee for
Ethnic Minorities and Mountainous Areas and the Ministry of Finance, the
Ministry of Construction hereby guides the management of investment
expenditures on the construction of infrastructure projects under Program 135
and the Program for construction of mountainous and highland commune clusters
centers, as follows:
Part I.
OBJECTS AND SCOPE OF
APPLICATION
1. This Circular guides the management of
investment expenditures on the construction of small-scale infrastructure
projects involving simple techniques, having an investment capital level of
under VND 1 billion and falling within the scope of Program 135 and the Program
for construction of mountainous and highland commune clusters centers
(hereinafter collectively referred to as Program 135). The provisions of this
Circular shall not apply to other construction projects.
2. For infrastructure projects with an
investment capital level of VND 1 billion or more, the management of investment
expenditures on their construction shall comply with the provisions of the
Regulation on Investment and Construction Management promulgated together with
the Government’s Decree No.52/1999/ND-CP of July 8, 1999 and Decree
No.12/2000/ND-CP of May 5, 2000.
Part II.
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Construction cost of an infrastructure project
under Program 135 shall be determined on the basis of construction and
installation work volume of such project, the system of economic and technical
norms and criteria and the State’s current regimes and policies suitable to the
practical conditions of such project.
The total cost the total expense amount required for investment in the projects
construction and concretely calculated in the technical designing-construction
stage, including: Construction and installation cost, equipment cost (if any),
other costs and reserve costs. Cost items in the total cost estimates are
specified in the Ministry of Construction’s Circular No.09/2000/TT-BXD of July
17, 2000 guiding the elaboration of construction cost estimates and management
of construction cost of works under investment projects.
The construction cost estimate of an
infrastructure project shall be elaborated on the basis of construction and
installation work volume calculated according to the technical design for
construction, capital construction unit costs promulgated by the
provincial-level People’s Committees and such costs and expenses as: General
costs, pre-calculated taxable income and output value added tax (Appendix No.1
to this Circular). Concretely as follows:
1. Labor cost in the unit costs shall be applied
under the guidance in the capital construction unit cost index of localities.
In cases where is laborers are entitled to wage-based
allowances, such allowances shall be additionally calculated into wage expenses
in the cost estimates.
When it is necessary to separate the labor cost
from the construction and installation cost estimates in order to employ local
laborers under a package labor contract, the capital construction cost estimate
norms and workday unit cost in the capital construction unit cost index of the
localities shall serve as basis.
2. Materials cost: shall apply according to the
capital construction unit cost index of localities. For projects executed by
communes themselves or with appointed contractors that use assorted
construction materials exploited on the spot such as bamboo, sand, stone,
gravel, etc., the costs of such construction materials shall be calculated at
their actual purchasing prices suitable to the construction materials price
platform in such localities, and the construction materials price difference
shall be accounted for clearing in the projects cost estimates.
3. Construction machine cost: shall be
calculated according to the machine shift cost index promulgated together with
the Construction Minister’s Decision No.1260/1998/QD-BXD of November 28, 1998
4. For general cost and pre-calculated taxable
income, Appendix No.2 to this Circular shall apply.
Particularly for construction and installation
volumes performed by communes themselves (under-taking to perform package
volumes), the general cost shall be calculated equal to 40% of the prescribed
general cost level. The use of such cost must be is
Committees on the basis of actual implementation.
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Part III.
OTHER COST ITEMS
I. STAGE OF INVESTMENT
PREPARATIONS
1. For an infrastructure project with a total
investment capital level of under VND 1 billion, only the investment report is
required. Content of investment reports shall comply with the Ministry of
Planning and Investment’s guidance in Circular No.06/1999/TT-BKH of November
24, 1999 and Circular No.07/2000/TT-BKH of July 3, 2000. Projects eligible for
investment reports shall not have to be evaluated. Investors shall have to
submit investment reports to the authorities competent to decide the investment
for examination, consideration and decision.
2. The expense level for making investment
reports applicable to all infrastructure projects shall be equal to 0.37% of
the total capital invested in the construction of projects already approved by
the competent authorities.
II. STAGE OF CONSTRUCTION
INVESTMENT EXECUTION
Some other costs and expenses arising in the
stage of construction investment execution mentioned below shall be calculated
in the projects cost estimates:
1. Expenses for damage compensations and
construction site clearance:
The determination of expenses for payment of
compensations for damage in land, assets, crops and project construction site
clearance (if any) shall comply with the provisions of the Government’s Decree
No.22/1998/ND-CP of April 24, 1998 on compensations for damage when the State
recovers land for use for purposes of national defense, security, national
interest and public interest. The applicable compensation unit prices shall be
those promulgated by the presidents of the provincial People’s Committees.
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2. Construction survey costs:
Construction survey costs for geological and
hydrological probing drills, earth and rock sampling, and measurement and
drawing of maps of construction sites shall be determined according to the cost
estimates norms of construction survey promulgated together with the
Construction Ministry’s Decision No. 06/2000/QD-BXD of May 22, 2000 and
Circular No.07/2000/TT-BXD of July 12, 2000 guiding the elaboration of
construction survey unit costs and management of construction survey costs and
construction survey cost index promulgated by the provincial-level People’s
Committees.
3. Construction project designing cost:
a/ For infrastructure projects under Program
135, due to their small scale and simple techniques, the construction designing
shall be made according to the one-step designing process (technical designing
-construction).
c/ In cases where a project uses the typical design
or reused design, the designing cost shall be calculated according to the level
applicable to new designs multiplied by the readjusting coefficient of 0.5.
4. Expense (fee) for evaluation of designs,
total cost estimates and cost estimates:
a/ For cases where a provincial agency with the
construction management function conducts the evaluation of designs, total cost
estimates, cost estimates of projects, the evaluation fee shall be determined
according to the fee level prescribed by the Finance Ministry in Decision
No.141/1999/QD-BTC of November 16, 1999.
b/ In cases where it is necessary to hire a
consultancy organization to conduct the evaluation of designs, total cost
estimates and cost estimates of projects, the evaluation expense shall be
determined according to the expense level prescribed by the Construction
Ministry in Decision No.14/2000/QD-BXD of July 20, 2000, more concretely as
follows:
- Design evaluation expense shall be equal to
0.18% of the estimated construction and installation value (without VAT) of
projects approved by the competent authorities.
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5. Bidding organization expenses:
For infrastructure projects subject to construction
and installation bidding according to the provisions of the Bidding Regulation
promulgated together with the Government’s Decree No.88/1999/ND-CP of September
1st, 1999 and Decree No.14/2000/ND-CP of May 5, 2000, the expenses for
compiling bid-soliciting dossiers and evaluating construction and installation
bids shall be calculated. Such expenses shall be determined equal to 0.35% of
the estimated construction and installation value (without VAT) of the projects
approved by the competent authorities.
6. Construction supervision expenses:
Expenses for supervision of construction of
infrastructure projects are prescribed as follows:
a/ For cases where consultants are hired to
supervise the construction of projects, the supervision expenses shall be
determined equal to 1.5% of the estimated construction and installation value
(without VAT) of the projects approved by the competent authorities.
b/ In cases where district or commune-level
project management boards (if any) supervise the construction by themselves,
the supervision expense level shall, depending on the specific conditions of
projects, be estimated and approved by the investment-deciding authorities, but
must not exceed the expense level prescribed at Point a, Clause 6 of this
Article.
7. Expenses for project management boards:
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For district-level project management boards, the expense level shall be equal
to 2.2% of the estimated construction, installation and equipment value of
projects already approved by the competent authorities.
- For commune-level project management boards
(if any), the expense level shall be equal to 2% of the estimated construction,
installation and equipment value of projects already approved by the competent
authorities.
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For infrastructure projects, which are permitted
by the cost estimates-approving authorities to erect makeshift tents or camps
in service of construction activities, the expenses therefor must be separately
estimated and approved by the investment-deciding authorities at the level not
exceeding 1% of the estimated construction and installation value (without VAT)
of the projects.
9. In the course of executing projects, the
projects funding amounts shall not be set aside for use for other purposes.
III. STAGE OF COMPLETION OF
PROJECT CONSTRUCTION
1. The settlement of infrastructure projects
construction investment capital according to various kinds of mobilized capital
sources shall comply with the guidance in the Finance Ministry’s Circular No.
70/2000/TT-BTC of July 17, 2000. Particularly, the expense for evaluation and
approval of projects investment capital settlement shall be calculated equal to
0.10% of the estimated construction and installation value (without VAT) of the
settled projects.
2. The expenses for pre-acceptance test and
hand-over of projects for operation (if any) shall be put in separate cost
estimates and accounted into the total cost estimates and/or cost estimates of
projects.
Part IV.
ORGANIZATION OF IMPLEMENTATION
This Circular shall apply only to infrastructure
projects under Program 135 and the Program for building of commune clusters
centers, which have been implemented under the Prime Minister’s decisions.
The elaboration of cost estimates of infrastructure
projects under this Circular’s guidance shall apply as from October 1st, 2000.
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In the course of implementation, if the
localities covered by Program 135 detect any matter that needs to be
supplemented and/or amended, they should promptly report it to the Construction
Ministry for study and solution.
MINISTER
OF CONSTRUCTION
Nguyen Manh Kiem
APPENDIX 1
THE GENERAL INDEX OF CONSTRUCTION AND INSTALLATION
COST ESTIMATES OF CONSTRUCTION PROJECT COMPONENTS
Ordinal
number
Cost items
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Result
I
Direct costs
1
Materials cost
m
Σ Qj x Djvl + CLvl
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VL
2
Labor cost
m
Σ Qj x Djnc + Fnc
j = 1
NC
3
Construction machine cost
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Σ Qj x Djm
j = 1
M
Total direct costs
VL + NC + M
T
II
General costs
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C
III
Pre-calculated taxable incomes
(T + C) x Prescribed percentage
TL
Pre-tax construction and installation cost
estimates value
(T + C + TL)
gxl
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Output value added tax
Gxl x TXL GTGT
VAT
After-tax construction and installation cost
estimates value
(T + C + TL) + VAT
Gxl
In which:
Qj: Construction and installation work volume
number j;
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P: General cost norms (%);
TL: Pre-calculated taxable incomes;
Gxl: After-tax construction and installation cost
estimates value;
CLvl: Difference in materials prices (if any);
TXL Value added tax rate
prescribed for construction and installation activities;
VAT: Total output value added tax amount
(including input value added tax paid when materials, supplies, fuels,
energy... are purchased, and value added tax amount that must be paid by the
construction enterprise);
Fnc: Allowances not yet accounted into the unit
costs specified in the capital construction unit cost index of localities (if
any).
APPENDIX 2
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Calculation unit: %
Ordinal
number
Types of project
General
costs
Pre-calculated
taxable income
1
Construction and installation of civil
projects
58.0
5.5
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Construction and installation of industrial
projects and small hydroelectric power plants
67.0
5.5
3
Construction and installation of hydroelectric
power plants, electricity transmission lines, transformer stations
71.0
6.0
4
Construction of tunnels and pits, installation
of machines in tunnels and pits
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6.5
5
Construction of road beds and surfaces
66.0
6.0
6
Construction and installation of traffic bridges
and culverts, wharves and ports, and marine projects
64.0
6.0
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Construction and installation of irrigation
works
64.0
5.5
- Particularly for manual excavation and
embankment of irrigation works (except for obligatory local laborers)
51.0
5.0
8
Construction and installation of postal
communications projects, railway signaling systems, radio and television
broadcasting projects
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5.5
9
Construction and installation of petrol and
oil tanks, oil and gas pipelines
66.0
6.0
10
Construction of stations and farms of all
kinds for forestation, industrial crops cultivation, land reclamation and
field building
55.0
5.5
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