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THE
MINISTRY OF FINANCE
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SOCIALIST
REPUBLIC OF VIET NAM
Independence Freedom Happiness
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No.
118/2007/TT-BTC
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Hanoi,
October 2, 2007
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CIRCULAR
GUIDING THE MANAGEMENT AND USE OF INVESTMENT PROJECT
MANAGEMENT FUNDS OF STATE BUDGET-FUNDED PROJECTS
Pursuant to the Governments
Decree No. 77/2003/ND-CP of July 1, 2003, defining the functions, tasks, powers
and organizational structure of the Ministry of Finance;
Pursuant to the Governments Decree No. 60/2003/ND-CP of June 6, 2003, detailing
and guiding the implementation of State Budget Law No. 01/2002/QH11;
Pursuant to the Governments Decree No. 99/2007/ND-CP of June 13, 2007, on the
management of work construction investment expenses,
The Ministry of Finance guides the management and use of investment project
management funds of state budget-funded projects as follows:
Part I
GENERAL PROVISIONS
1. Investment project management
funds cover all necessary expenses used by investors and project management
units (PMUs)
for performing their project management tasks throughout the project investment
duration.
2. Subjects and scope of
regulation: Investors and PMUs
that manage state budget-funded projects, including projects funded with
official development assistance (ODA) or government bond capital, shall manage
and use investment project management funds in accordance with the current
provisions of law and specific guidance in this Circular, ensuring that those
funds are used for proper purposes in a thrift and efficient manner.
3. Projects capitalized at under
VND 7 billion each are not subject to formulation and approval of separate
estimates of project management funds but must use these funds according to
Point 3 (3.2), Section IV of the Part Specific provisions of this Circular
within the project management expense norms set by investment deciders. The
settlement of project management expenses shall be made together with the
settlement of expenses of the completed project.
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Part II
SPECIFIC PROVISIONS
I. GROUPING
OF INVESTMENT PROJECT MANAGEMENT
1. Group I includes PMUs
which are set up-under decisions of ministers, heads of ministerial-level
agencies, heads of other central agencies, heads of government-attached
agencies or provincial/ municipal Peoples Committee presidents in order to
manage important national projects and group-A large-scale projects; those PMUs
have the independent legal person status and staff salaried from project management
funds.
2. Group II includes investors,
in case no PMUs
are set up, and PMUs
other than those of group I; staff of PMUs of this group are
not salaried from project management funds.
II. SPECIFIC
REGULATIONS APPLICABLE TO PROJECT MANAGEMENT GROUPS
1. For group I
1.1. Group-I PMUs shall implement the
accounting regime applicable to investors according to the States current
regulations.
1.2. Annually, based on the
assigned investment capital plan, a PMU shall make annual estimates of project
management expenses and request the finance agency of the PMU
establishment-deciding authority to evaluate and approve them. The time limit
for making and approving annual estimates of project management expenses starts
from the time of issuance of the investment capital plan allocation decision
and expires on January 31 of a plan year. The decision approving the annual
estimate of project management expenses shall be sent to the PMU and the
investment capital-paying agency for compliance.
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- Salaries and amounts of salary
nature, based on actual salary tables, excluding amounts calculated on the
basis of adjustment coefficients for increasing salaries;
- Payments for public services
and procurement of office supplies sufficient for task performance.
The PMU shall carry out
procedures for payment and refund of the advance amounts immediately after the
annual estimate of project management expenses is approved; the advance
duration must not exceed 2 months.
b/ In case the PMU is allocated
by a competent authority additional funds for achieving a certain target or
increasing incomes for project managers, it may use such funds according to the
competent authority’s decision.
1.3. At the end of a plan year,
the PMU shall make the annual settlement of project management expenses and
send it to the finance agency of the PMU establishment-deciding authority no
later than February 28 of the subsequent year for evaluation and approval.
1.4. When a project is completed
and put into operation, the PMU shall synthesize annual settlements of project
management expenses and the report on the settlement of expenses of the
completed project in order to submit them to a competent authority for
approval.
2. For group II
2.1. After the projects capital
plan is approved and the execution of the project is deployed, the PMU or the
investor, in case no PMU is set up, shall prepare an estimate of project
management expenses for the whole execution duration of the project, but not on
a yearly basis, then submit it to the investor for evaluation and approval. The
decision approving the estimate of project management expenses shall be sent to
the PMU and the investment capital-paying agency for compliance.
2.2. When a project is completed
and put into operation, the PMU or the investor, in case no PMU is set up,
shall make the settlement of project management expenses and the report on the
settlement of expenses of the completed project and submit them to a competent
authority for approval.
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3.1. The investment capital payment-controlling
agency shall control the payment of project management expenses according to
the approved estimates, current financial management regulations and specific
provisions of this Circular.
3.2. In the course of using
project management funds, the investor (the PMU) may adjust on its own
initiative expenses in the estimate of project management expenses (written
adjustment is not required) without increasing the total value of the approved
estimates.
4. Handling of proceeds from the
sale of bidding dossiers
The selling prices of bidding
dossiers comply with the bidding law; bidding organization expenses must not
exceed the proceeds from the sale of bidding dossiers; after paying necessary
expenses for organizing biddings, the investor (the PMU) shall remit into the
state budget the remainder of the proceeds from the sale of bidding dossiers.
5. Procurement and use of
vehicles
Separate cost estimates must be
made for the procurement of cars (if any) for project management work and
submitted to a competent authority for decision in accordance with the Prime
Ministers Decision No. 59/2007/QD-TTg of May 7, 2007, promulgating the
Regulation on criteria, norms and management and use of vehicles applicable to
state agencies, public non-business units and state companies. The investor
(the PMU) may not lease or lend the projects assets.
III. PROJECT
MANAGEMENT FUNDS
1. Investment projects
management funds are deducted from the projects investment capital.
2. Norms for deduction of
project management funds:
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2.2. For projects without
construction and equipment expenses or with total construction and equipment
expenses accounting for less than 60% of the projects total investment capital,
norms for deduction of project management funds are determined according to
investment deciders regulations.
2.3. For ODA projects: If
specific levels of project management funds are determined in projects
agreements, these levels shall be complied with; if not, the levels of project
management funds shall be determined in accordance with Point 2 (Items 2.1 and
2.2) of Section III.
IV.
ESTIMATION OF PROJECT MANAGEMENT FUNDS
1. Bases for the estimation of
project management expenses
The investment decision;
The PMU establishment decision;
The investment capital plan
allocation decision;
The staff salary table (for
group-I PMUs).
2. Determination of total
project management expenses
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2.2. To determine the value of
expenses for construction investment consultancy(GTV) performed by the investor
(the PMU) itself:
2.3. To determine the value of
expenses within project management expenses (GQLDA-TV) for jobs to be performed
by hired consultants:
2.4. To determine the value of
expenses within project management expenses (GQLDA-KTH) for jobs not required
to be performed (if any) under the project thanks to its specific
characteristics:
2.5. Total project management
expenses payable by the investor (the PMU) throughout the project management
duration, GQLDA(CDT), are determined according to formula (1) below, serving as
the maximum level for the estimation of project management expenses of the
investor (the PMU).
(1) GQLDA(CDT) = GQLDA + GTV -
GQLDA-TV - GQLDA-KTH
3. Contents of estimates of
project management expenses
3.1. For group-I PMUs:
Based on the project execution
progress according to plan, the PMU shall allocate project management expenses
(GQLDA(CDT)) already determined in form No. 01/DT.QLDA (not printed herein),
for years of project execution in order to include them in annual estimates of
project management expenses. An annual estimate of project management expenses
covers:
(1). Salaries, including grade-
and rank-based salaries according to allocated salary funds, and long-term
contract wages, which are paid to individuals salaried by projects under
competent authorities decisions according to the States current regulations on
salary regimes.
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(2). Salary-based allowances,
including position-based, responsibility-based, area-based, attraction,
cost-of-living, extra-time work, hazard, danger, itinerant job and special
branch allowances, which are paid to individuals salaried by projects under
competent authorities decisions according to current regulations applicable to
state agencies and public non-business units.
(3). Deductions for payment of
social insurance and health insurance premiums, trade union dues, and other
deductions applicable to individuals salaried by projects under competent authorities
decisions according to current regulations applicable to state agencies and
public non-business units.
(4). Bonuses, including regular
bonus and irregular bonus (if any), according to current regulations applicable
to state agencies and public non-business units.
(5). Welfare benefits, including
payments for paid leaves and other leaves according to regulations; regular and
irregular difficulty allowances according to current regulations applicable to
state agencies and public non-business units.
(6). Extra-time work pays,
applicable only to individuals not entitled to extra-time work allowances
specified at Item (2) under Point 3 (3.1) of Section IV and individuals whose
extra-work time can be determined according to workday-marking tables, the provisions
of the Labor Code regarding work time and rest time, and guiding documents.
(7). Payments for working-trip
allowances, which comply with current regulations applicable to state agencies
and public non-business units.
(8). Expenses for procurement of
office supplies, including office equipment, file cabinets, furniture, books
and documents for professional operations, and stationeries according to
current regulations applicable to state agencies and public non-business units.
(9). Expenses for public services,
including charges for electricity and water, telephone, post, fax,
environmental sanitation, and other service charges according to current
regulations applicable to state agencies and public non-business units.
(10). Expenses for procurement
of assets used for management work, including fire protection devices,
computers and computer software.
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(12). Hire expenses, including
hire of vehicles, working offices, support tools, and experts.
(13). Expenses for professional
conferences and training courses according to current regulations applicable to
state agencies and public non-business units.
(14). Expenses for visits (if
any), including airfare, meal and lodging payments, pocket money, etc.,
according to current regulations applicable to state agencies and public
non-business units.
(15). Contingencies, which are
equal to 10% of the estimated fund.
3.2. For group-II investors (PMUs):
Based on total project
management expenses payable by the investor (the PMU) (GQLDA(CDT)) already
determined in form No. 01/DT.QLDA (not printed herein), the PMU shall make
estimates of project management expenses for the whole project execution
duration, but not on a yearly basis. An estimate of project management expenses
covers:
- Expenses listed at Items (6)
thru (11) of group I above;
- Project management allowances,
which are paid only for those directly performing project management jobs,
including PMU staff members and investors staff members. The PMU shall, based
on the duration of each staff members management job and specific project
management funds, calculate the percentage of allowances for staff members. The
monthly project management allowance for an individual must not exceed 50% of
the total of his/ her monthly salary and salary-based allowance.
- Contingencies, which are equal
to 10% of the estimated fund.
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- A written application for
approval;
- The PMU establishment
decision; the investment decision; the investment capital plan allocation
decision;
- List of calculated project
management expenses of the investor (the PMU) (form No. 01/DT-QLDA, not printed
herein);
- For group-I PMUs:
Annual estimates of project management expenses (form No. 02A/DT.QLDA, not
printed herein); staff salary list (annex No. F02A/DT.QLDA. not printed
herein);
- For group-II investors (PMUs):
Estimates of management expenses for the whole project (form No. 02B/DT-QLDA,
not printed herein).
V. EVALUATION
AND APPROVAL OF ESTIMATES OF PROJECT MANAGEMENT EXPENSES
1. Order of evaluating estimates
of project management expenses:
- Evaluation of jobs,
calculation methods and results in the list of project management expenses of
the investor (the PMU) according to form No. 01/DT.QLDA (not printed herein);
- Evaluation of the rationality
of the allocation of annual expenses and expenses for the plan year (for
group-I PMUs);
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2. The head of the finance
agency of the PMU establishment-deciding authority shall approve annual
estimates of group-I PMUs
according to form No. 03A/QD.QLDA (not printed herein). The investor shall
approve estimates of group-II PMUs
according to form No. 03B/QD.QLDA (not printed herein).
3. The cost estimate-approving
decision shall be sent to the investor (the PMU), the investment capital-paying
agency and relevant agencies.
4. The time limit for evaluating
and approving cost estimates of project management expenses is 20 working days
from the date of receipt of a full estimate dossier according to regulations.
VI.
SETTLEMENT OF PROJECT MANAGEMENT EXPENSES
1. A dossier of settlement of
annual project management expenses for group-I PMUs comprises:
- A written application for
approval of the estimate;
- A report on the settlement of
project management expenses in the plan year, made according to form No. 01/QT.QLDA
(not printed herein);
- A comparison list of data on
the payment of project management expenses, made according to form No.
04/QT.QLDA (not printed herein);
- Documents on expenses arising
in the year.
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2.1. For group I:
- A general list for settlement
of project management expenses, made according to form No. 02/QT.QLDA (not
printed herein).
- Copies of decisions approving
the projects annual estimates of project management expenses;
- A report on the settlement of
project management expenses in the final year, made according to form No.
01/QT.QLDA (not printed herein);
- A comparison list of data on
the payment of project management expenses, made according to form No. 04/QT.QLDA
(not printed herein);
- Documents on expenses arising
in the final year.
2.2. For group II:
- A report on the settlement of
project management expenses, made according to form No. 03/QT.QLDA (not printed
herein);
- A comparison list of data on
the payment of project management expenses, made according to form No.
04/QT.QLDA (not printed herein):
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3. Verification of the
settlement of project management expenses
- Verification of the consistency
of settlement data and the approved estimates;
- Examination of expense
documents, ensuring their legality, rationality, validity, and observance of
the States current expense regulations;
- Consideration of advance
amounts at year-end (if any).
4. Decision approving the
settlement of project management expenses
4.1. A decision approving the
settlement of project management funds in a plan year for group-I PMUs
is similar to a decision approving the estimate of project management expenses
in a plan year, made according to form No. 03A/QT.QLDA (not printed herein) and
shall be sent to the investor (the PMU), the investment capital-paying agency
and relevant units.
4.2. The settlement of project
management funds for group-II investors (PMUs) shall be approved
under a decision approving the settlement of expenses of the competed project.
VII.
EXAMINATION
1. Finance-investment managing
units under ministries, branches and localities shall plan the examination of the
management and use of project management funds by investors (PMUs)
under their management in order to rectify in time wrongdoings in the course of
project management.
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VIII.
RESPONSIBILITIES OF CONCERNED UNITS
1. Responsibilities of
investors:
- To urge PMUs to make estimates
and settlement reports, submit for approval estimates and settlement of project
management expenses according to the time limit and contents specified in this
Circular;
- To evaluate and approve
estimates of project management expenses (for group-II PMUs) according to the
time limit and contents specified in this Circular.
2. Responsibilities of PMUs:
- To make estimates and
settlement reports, submit for approval estimates and settlement of project
management expenses according to the time limit and contents specified in this
Circular;
- To take full responsibility
for the management and use of project management funds, the accuracy of data
and the legality of dossiers submitted for approval.
3. Responsibilities of
evaluating and approving agencies:
- To take responsibility for the
results of evaluation of estimates, the verification and approval of the
settlement of project management expenses based on dossiers sent by PMUs;
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4. Responsibilities of
controlling and paying agencies:
- To control and pay investment
project management expenses according to approved estimates in accordance with
the States current financial management regulations and specific provisions of
this Circular;
- To compare and certify paid
amounts listed in the reports on the settlement of project management expenses
and, at the same time, give comments, assessments and proposals concerning
investors observance to cost estimate-verifying and -approving agencies.
5. Responsibilities of
ministries, branches and localities:
- To regularly examine the
management and use of investment project management funds of state
budget-funded projects under their management; to take measures to handle
according to law individuals or units that commit violations in managing or
using investment project management funds.
Part III
ORGANIZATION OF
IMPLEMENTATION
1. This Circular takes effect 15
days after its publication in CONG BAO and replaces the Finance Ministry’s
Circular No. 98/2003/TT-BTC of October 14, 2003, guiding the management and use
of investment project management funds from the state budget.
2. Investors and PMUs
that have approved estimates of project management expenses before the
effective date of this Circular shall continue to apply the approved estimates
till the end of the plan year, for group-I PMUs, or till the
project completion, for group-II investors (PMUs).
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FOR
THE MINISTER OF FINANCE
VICE MINISTER
Nguyen Cong Nghiep