Circular No. 01/1998/TT-BKH on guiding the implementation of Decision No. 1179/1997/QD-TTg of the Prime Minister dated December 30, 1997

CIRCULAR

Regarding guiding the implementation of Decision No. 1179/1997/QĐ-TTg of

 the Prime Minister dated December 30, 1997 

To implement the Prime Minister's Decision on certain policies and measures for managing the economic and social development plan and state budget estimate for 1998 (Document No. 1179/1997/QĐ-TTg dated December 30, 1997), the Ministry of Planning and Investment guides specific areas of investment and development as follows:

 1. Continue to implement Circular No. 5459/TTg dated October 31, 1997 of the Prime Minister regarding inspection of construction investments. Ministries and localities must rigorously review, rearrange, and evaluate the effectiveness and urgency of each project, balance investment capital, and thereby take concrete measures to address the current dispersion. In the short term, it is necessary to proactively suspend projects that have demand but are not the most urgent.

It is requested that ministries, sectors, and localities inspect the implementation of the 1997 plan and propose adjustments, submitting reports to the Ministry of Planning and Investment by February 1998.

2. Conditions for recording plans.

Clause b, Point 5, Article 10 amended by Decree No. 92/CP dated August 23, 1997 stipulates that projects belonging to Groups A and B, if they do not yet have approved technical designs and total estimates, but the investment decision specifies the capital for each component, may be recorded in the investment plan.

Based on this provision, all ministries, sectors, and localities must inspect all Group B projects scheduled to start in the 1998 plan. If only the general investment decision is available without specifying the capital for each component, at least the technical design and estimate for the construction component in 1998 must be approved by the first quarter of 1998 before implementation can proceed.

For the remaining projects in Group C recorded in the 1998 plan, all must have approved technical designs and estimates according to Decree No. 42/CP dated July 16, 1996. The examination documents must have a date prior to December 31, 1997. Projects decided upon and approved after this date will not be included in the 1998 plan.

3. Allocation of capital for Group C projects.

On one hand, ensuring the autonomy of ministries and localities in planning, while the Prime Minister has stipulated that over 70% of the 1998 investment capital allocated to Group C projects should be reserved for ongoing projects and new projects (if any) to be completed within the year.

Given limited investment capital, to effectively address the issue of dispersed capital allocation and too many Group C projects, ministries and localities are requested to register their Group C project plans (continuing and new starts) by February. The Ministry of Planning and Investment will check compliance with Decision No. 1179/1997/QĐ-TTg, report to the Prime Minister, and notify units that have not complied with the regulations to adjust accordingly.

4. Ministries, sectors, and localities must strictly direct and implement according to the recorded plan, not exceeding the plan; if a project increases, it must be offset by reducing another project to maintain balance. Only projects with written directives from the Prime Minister may exceed the recorded capital.

5. Regarding office building investment.

The Prime Minister has directed to minimize the use of state budget funds for constructing office buildings. The Ministry of Planning and Investment issued Circular No. 7688/BKH/CSHT dated December 1, 1997 guiding the rearrangement of office building lists in the 1998 plan. Therefore, by February 1998, ministries, sectors, and localities are required to register the list of office building projects for 1998 within the allocated investment capital. For newly proposed projects, accompanying documents such as investment decisions and approved designs and estimates must be submitted to the Ministry of Planning and Investment for consolidation and submission to the Prime Minister for approval.

Following the policy of thrift in purchasing expensive equipment in administrative and public institutions, the state budget will not invest in air conditioning systems, elevators, and high-end interior furnishings. If there is a genuine need for such equipment, the investor must self-finance through legitimate sources.

6. Regarding state plan-directed investment credit.

According to Article 12 of Decision No. 1179/QĐ-TTg, the Prime Minister has delegated the Minister of Planning and Investment to allocate the list and capital for each project in Group A, and to inform the list of projects in Groups B and C to relevant ministries, sectors, and localities. Regarding mechanisms, after the Prime Minister decides on the total source of capital, lending entities, borrowing entities, interest rates, terms, collateral, etc., the Ministry of Planning and Investment will provide detailed guidance.

7. Regarding guidance and management of plan implementation.

The Prime Minister has stipulated in Articles 14, 15, and 16 of Decision No. 1179/1997/QĐ-TTg that ministries, sectors, and localities must submit monthly reports before the 22nd of each month. Specifically, for investment capital implementation, clear details of work volume and funds disbursed (for projects funded by state budget) and signed credit contracts and funds disbursed (for projects funded by credit) are required.

Provincial Planning and Investment Departments will assist provincial people's committees in compiling monthly and quarterly reports. To ensure timely information, main reports should be sent via official correspondence and PAX to numbers 048234453 and 048232494 of the Ministry of Planning and Investment Office.

The Ministry of Planning and Investment will compile reports for the Government on the 25th of each month, reflecting the situation reported by ministries and localities.

Monthly, after receiving reports from ministries and localities, the Minister of Planning and Investment will chair meetings with relevant agencies to find solutions to specific emerging issues and report to the Prime Minister for resolution./.