Circular No. 01/2007/TT-BNN guiding the implementation of the project to support production development and economic restructuring, improve the production capacity of ethnic minorities and mountainous areas under Program 135 for the period 2006-2010.

Pursuant to Decree No. 86/2003/NĐ-CP dated July 18, 2003 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Agriculture and Rural Development;

Pursuant to Decision No. 07/2006/QĐ-TTg dated January 10, 2006 of the Prime Minister approving the Socio-Economic Development Program for Particularly Difficult Communes in Ethnic Minority and Mountainous Areas for the period 2006-2010;

The Ministry of Agriculture and Rural Development provides guidelines on the implementation of the "Project to Support Production Development and Economic Structure Adjustment to Enhance the Production Capacity of Ethnic Minorities" (hereinafter referred to as the Production Development Support Project) as follows:

1. The Production Development Support Project shall be implemented in particularly difficult communes, border communes, safe zones; particularly difficult hamlets and villages in Zone II communes under Program 135 for the period 2006-2010 according to the list approved by the Prime Minister. The implementation of the project must comply with the provisions of Circular Joint No. 676/2006/TTLT/UBDT-KHĐT-TC-XD-NNPTNT guiding the implementation of the Socio-Economic Development Program for Particularly Difficult Communes in Ethnic Minority and Mountainous Areas for the period 2006-2010 and the provisions of this Circular.

2. The Production Development Support Project shall carry out activities to promote production, adjust economic structures, enhance production capacity of ethnic minorities, strengthen investment effectiveness, and help poor households escape poverty.

3. The selection of production development activities, plan formulation, organization of implementation, supervision, and evaluation of the project shall be conducted openly and democratically, promoting the initiative and creativity of the people and the community.

4. The content of the Production Development Support Project must ensure the achievement of general and specific goals of Program 135 and be closely linked to the socio-economic development plans of the commune, district, and province.

5. Implementation shall be integrated with other components of Program 135, building upon the experiences of other programs and projects already implemented in the area to maximize the effectiveness of the project.

6. Diversification of funding sources from organizations and individuals both within and outside the country, local government budgets at all levels, and mobilization of community participation through labor contributions, materials, and money to implement the project.

7. Strengthening decentralization to allow communes to take charge of the project based on training and enhancing the management capabilities of grassroots cadres. Provincial and district People's Committees have the responsibility to guide and train communes in managing and organizing the implementation of the project.

1. Recipients

The target beneficiaries of the support project include poor households and groups, specifically as follows:

1.1. Poor Households: Poor households as defined by the criteria set forth in Decision No. 170/2005/QĐ-TTg dated July 8, 2005 of the Prime Minister regarding the issuance of poverty standards for the period 2006-2010.

1.2. Groups: Groups supported by the project must meet the following conditions:

- Composed of poor households and other households residing in the same village community, sharing common interests in production development and willing to cooperate and assist each other;

- Have a commitment or internal regulations clearly defining the responsibilities, obligations, rights, and contributions (labor, materials, money...) of each member to implement the project and a plan for using funds to increase income and create jobs for members;

- Have a group leader elected by the members to manage and direct the group's activities;

The number and proportion of poor households in the group shall be determined by the Commune People's Committee in accordance with the actual situation of the locality.

Households and groups are selected openly and democratically from villages, prioritizing poorer households for initial investment support. The Chairman of the Commune People's Committee establishes a list of households and groups through the Standing Committee of the Commune People's Council and submits it for approval by the Chairman of the District People's Committee.

2. Content of the Project

Based on the socio-economic conditions of the locality, natural resources, traditional industries, labor force, infrastructure, market demand, forms of production organization... the Commune People's Committee guides the people to choose appropriate support contents to diversify and increase income for the people. Support content may include material assistance, production knowledge training, market information provision... including the following:

2.1. Supporting agricultural, forestry, fishery, and industrial extension activities

- Promoting scientific and technological advancements, market information, prices; printing, distributing, and disseminating to households some production processes for crops, livestock, preservation, and processing of agricultural and forest products...

- Training and imparting skills to improve knowledge, skills, and economic management in agriculture and rural areas;

- Organizing visits and surveys to learn production experiences within and outside the locality;

- Establishing demonstration models for applying scientific and technological advancements in agricultural, forestry, and fishery production.

2.2. Supporting the establishment and widespread dissemination of production models

- Models transferring scientific and technological advancements into production: crop cultivation, animal husbandry, aquaculture, processing of agricultural, forestry, and aquatic products;

- Production models linked with processing, preservation, and product consumption;

- Models adjusting the economic structure of agriculture and rural areas.

2.3. Supporting seeds and production materials for crop and livestock (applicable to poor households)

- Livestock seeds: large and small ruminants, poultry, and aquaculture; crop seeds: food crops, industrial crops, forestry crops, fruit trees, and medicinal plants... with yields and quality suitable for local conditions;

- Chemical fertilizers, veterinary drugs, plant protection chemicals, and other materials.

2.4. Supporting the purchase of equipment and machinery for post-harvest product processing and preservation

- Drying, preservation, and processing equipment for agricultural and forest products;

- Tools and equipment for preserving and processing agricultural, forestry, and fishery products.

The support ratio from the Project for each content; type, scale of machines, tools, equipment for preserving and processing agricultural, forestry, fishery products shall be specified by the Provincial People's Committee in accordance with the actual conditions and circumstances of the locality.

3. Project Management Organization

3.1. Project Owner

The Chairman of the District People's Committee decides to assign the Chairman of the Commune People's Committee as the project owner. For communes that do not yet meet the conditions to be the project owner, the Chairman of the District People's Committee assigns a suitable unit of the district (Department of Agriculture, Department of Economy...) to manage and implement the project.

3.2. Project Management Board

The project owner uses the Project Management Board of Program 135 at commune and district levels and supplements tasks and components related to the production development support project. In places where there is no Project Management Board of Program 135, a new board will be established according to the guidelines set out in Circular Joint No. 676/2006/TTLT-UBDT-KHĐT-TC-XD-NNPTNT.

Specific tasks of the Project Management Board:

- Preparing the project, detailed budget estimate, and implementation plan;

- Selecting and signing contracts with units, organizations, and individuals providing services under the authorization of the project owner;

- Coordinating with the Commune Supervision Board to monitor the implementation of the project within the commune;

- Managing the volume, quality, progress, and cost of the project;

- Reporting on the progress of the project;

- Acceptance, payment, and final settlement according to signed contracts;

- Handing over completed project contents;

- Performing other tasks assigned by the project owner.

3.3. Commune Supervision Board

Utilize the "Commune Supervision Board" of Program 135 to carry out its functions. The Commune Supervision Board has the task of supervising the implementation of the project within the commune from the project planning stage to the acceptance, handover, and final settlement of funds.

4. Procedures for Establishing, Reviewing, and Approving Projects and Investment Plans

4.1. Establishing, Reviewing, and Approving Projects.

The projects are implemented using various sources of capital: public expenditure funds, investment development funds of Program 135, and other integrated sources of funding.

a) For public expenditure funds:

Public expenditure funds are used for activities such as supporting agricultural, forestry, fishery, and industrial promotion activities; supporting seeds, livestock, and production materials. Based on economic and technical norms and unit prices approved by competent authorities, the Project Management Board only needs to prepare a detailed budget estimate for the required activities to be submitted to the Chairman of the District People's Committee for review and approval.

b) For investment development funds:

Investment development funds are used for activities such as supporting the construction and dissemination of production models; purchasing equipment, machinery, and tools for processing and preserving post-harvest products, carried out according to the guidelines set out in Circular Joint No. 676/2006/TTLT-UBDT-KHĐT-TC-XD-NNPTNT dated August 8, 2006, specifically:

Preparing an economic and technical report. The content of the economic and technical report only needs to include: project name, implementation content, project owner, location, scale, time frame, budget estimate.

The economic and technical report is prepared by the project owner selecting a consulting entity with legal status and sufficient capacity to implement, and submitting it to the Chairman of the District People's Committee for review and approval.

Costs for preparing, reviewing, and approving the economic and technical report are implemented according to the guidelines set out in Circular No. 01/2006/TT-BXD dated May 17, 2006, issued by the Ministry of Construction regarding guidance on preparing and managing investment costs for infrastructure projects under the Socio-Economic Development Program for Particularly Difficult Communes in Ethnic Minority and Mountainous Areas for the period 2006-2010.

4.2. Implementing Projects

4.2.1. Developing Investment Plans

The implementation of the investment plan for the project proceeds through the following steps:

a) Village: Organizing a meeting of villagers to select supported content and needs. The village head compiles the needs of households and groups of households, reports to the Commune People's Committee, and publicly announces for villagers to supervise.

b) Commune People's Committee: Based on the socio-economic development plan, the content of the production development support project, and the support needs of villages, it establishes a support plan for each year and the entire period 2006-2010 to be submitted to the District People's Committee for approval.

c) District People's Committee: Compiling annual plans and the entire period 2006-2010 of communes, reviewing and approving them, and reporting to the Provincial People's Committee.

d) Provincial People's Committee: Based on the central government's allocated capital annually, compiling the plans of districts, mobilized resources, approving, and allocating annual plans to districts.

4.2.2. Implementing Investments

a) The project owner may use direct assignment for investment development funds. The Project Management Board selects and contracts with units, organizations, and individuals providing services according to the detailed budget estimate and approved economic and technical report, encouraging competitive bidding.

b) After signing procurement and service provision contracts, the Project Management Board coordinates with contractors to implement project contents to households and groups of households. Households and groups of households have the responsibility to fulfill all commitments to implement the project.

4.2.3. Acceptance and Handover

a) Acceptance

The project owner organizes the acceptance of completed project contents; the acceptance team includes:

- Representative of the Project Management Board;

- Representative of the consulting and service-providing unit;

- Representative of the Commune Supervision Board and representatives of villages and hamlets benefiting from the project.

Depending on specific cases, the project owner may invite additional relevant parties to participate in the acceptance process.

b) Handover

If the project owner is at the district level, after acceptance, the project owner hands over completed contents to the Chairman of the Commune People's Committee. The Chairman of the Commune People's Committee assigns households and groups of households to directly manage and use them.

If the project owner is at the commune level, the project owner hands over to households and groups of households to directly manage and use.

To take the lead and coordinate with the Ministry of Finance and relevant ministries and sectors to urge, inspect, supervise, and resolve issues arising during the implementation of this Decree.

Assign the Cooperative and Rural Development Department to coordinate with relevant departments and units to perform the following tasks:

- Summarizing and submitting to the Ministry of Agriculture and Rural Development the detailed allocation plan of the Production Support Project funds of localities to the National Ethnic Minorities Commission for consolidation into the overall capital plan of Program 135 to be submitted to the Ministry of Planning and Investment, the Ministry of Finance for approval by the Prime Minister;

- Inspecting and urging the implementation of the Production Support Project in localities and proposing solutions, mechanisms, and policies to achieve the goals of Program 135 for the period 2006-2010.

- Develop and issue a handbook; framework program, training materials, guidance on the use of communal assets formed from support capital and other necessary contents to implement the project for production development support;

- Summarize the implementation situation of the project, conduct mid-term reviews, final summaries, and report to the steering committee of the Program according to the periodic schedule of six months and one year.

2. Provincial People's Committee

2.1. Direct the People's Committees of districts, departments, and relevant agencies to organize the implementation of the project within the province, and be responsible for the results and effectiveness of capital utilization;

- Develop an overall plan for the production development support project for the period of 2006-2010 and annual implementation plans;

- Elaborate guidelines to suit local conditions and characteristics;

- Approve the level of support, economic-technical norms, unit prices for the contents of the project;

- Organize training sessions to deploy the project for districts, communes, and relevant departments within the province;

- Summarize the implementation results, report periodically every three months, six months, and one year as stipulated in Circular No. 676/2006/TTLT-UBDT-KHĐT-TC-XD-NNPTNT;

- Conduct mid-term reviews, final summaries, make recommendations, and propose policies and organizational measures for implementation;

2.2. Direct the Department of Agriculture and Rural Development (Cooperative and Rural Development Agency) to advise the Provincial People's Committee on state management functions related to the Production Development Support Project, and perform the following tasks:

- Develop an overall plan for the Production Development Support Project;

- Lead and coordinate with relevant departments to establish levels of support for each content and target group of the Project; economic-technical norms to be submitted to the Provincial People's Committee for approval as a basis for budget preparation, approval, and settlement;

- Guide districts and communes in developing projects and investment plans. Aggregate investment plans, develop detailed capital allocation plans for the project for districts to report to the Steering Committee of Program 135, the Department of Planning and Investment, and the Department of Finance for submission to the Provincial People's Committee for approval;

- Provide detailed guidance on the ratio of support from the Project, types, scale of machinery, equipment for product preservation and processing suitable for local conditions and actual situations;

- Direct, summarize, disseminate, and promote models of production activities within the locality;

- Inspect and supervise the implementation of the Production Development Support Project within the province;

- Summarize the implementation results, report periodically every three months, six months, and one year to the provincial Steering Committee of Program 135, and send to the Ministry of Agriculture and Rural Development;

3. District People's Committee

Be responsible before the Provincial People's Committee for all activities of the Production Development Support Project to ensure compliance with objectives, target groups, areas, and effective use of funds;

- Guide communes in developing, reviewing, and approving projects; investment plans, aggregate, and report to the Department of Agriculture and Rural Development, the provincial Steering Committee of Program 135;

- Take charge of the project when assigned by the Provincial People's Committee;

- Direct, inspect, and supervise the organization of project implementation at communes, and build, summarize, and disseminate model projects;

- Summarize the project implementation results, report to the Department of Agriculture and Rural Development, the provincial Steering Committee of Program 135 every three months, six months, and one year as prescribed;

4. Commune People's Committee

Be responsible before the District People's Committee and the people in the commune for all activities of the Production Development Support Project on the commune's territory, results, and effective use of funds;

- Organize propaganda and dissemination about Program 135 for the period of 2006-2010 and the Production Development Support Project in the commune;

- Develop socio-economic development plans for the locality and guide residents in selecting supported contents from the project;

- Take charge of the project according to the decision of the District People's Committee;

- Develop the project to submit to the District People's Committee, review, and approve;

- Organize and direct the implementation of the project to households and groups of households;

- Inspect and supervise the implementation of the project to ensure grassroots democracy regulations;

- Summarize the project implementation results every three months, six months, and one year, report to the District People's Committee;

5. This Circular takes effect fifteen days after its publication in the Official Gazette, and all previous documents that conflict with this Circular are abolished;

Any issues arising during implementation that are not appropriate should be reported to the Ministry of Agriculture and Rural Development for study, amendment, and supplementation./.