Joint Circular No. 01/2008/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.

 

JOINT CIRCULAR

Guidelines for Implementing the Socio-Economic Development Program for Particularly Difficult Communes in Ethnic Minority Areas and Mountainous Regions for the Period 2006-2010

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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 Areas and Mountainous Regions for the Period 2006-2010 (hereinafter referred to as the Program 135 Phase II); the Joint Ministries: National Committee for Ethnic Minorities Affairs, Planning and Investment, Finance, Construction, Agriculture and Rural Development hereby provide guidelines as follows:

PART I.

GENERAL PROVISIONS

1. These Circulars guide the implementation of the tasks of Program 135 Phase II according to Decision No. 07/2006/QĐ-TTg dated January 10, 2006 of the Prime Minister (hereinafter referred to as Decision No. 07/2006/QĐ-TTg), implemented on the territory of communes and villages, hamlets, villages, wards, and other similar units (hereinafter referred to as villages) as decided by the competent authority.

2. Program 135 Phase II is funded from multiple sources: central budget, local budget, contributions raised, with the central budget providing support. Provincial People's Committees (hereinafter referred to as Provincial People's Committee) have the responsibility to mobilize local resources, from various units, organizations, and community layers within and outside the province, and integrate other programs and projects on the local territory to implement.

3. The allocation of central budget support funds (NSTW) for provinces is based on the approved criteria and number of communes and villages in the province; provinces must allocate these funds to each commune, village, and hamlet according to specific criteria, not evenly distributed. Allocation criteria are based on factors such as poverty rate, geographical location, area, population, and special conditions of each commune, ensuring priority investment for communes with high poverty rates. The Provincial People's Committee directs the establishment of allocation criteria and standards, which are submitted to the Provincial People's Council (hereinafter referred to as Provincial People's Council) for approval as the basis for annual funding allocation and notification to the People's Committee of each particularly difficult commune (DBKK) in region II.

4. Projects included in the implementation plan must be allocated sufficient funds to complete them thoroughly within one year, with a maximum duration of two years.

Implementation of the Program must be transparent and democratic at the grassroots level, strongly encouraging the participation of the people in the process. The People's Committee of the commune publicly announces the beneficiaries, funding standards for each project annually and throughout the program period through various methods: organizing meetings with the public, broadcasting announcements, posting notices at the commune People's Committee office, communal cultural centers, schools, markets, and other places where people gather. Annual plans and plans for the entire period until 2010 must be organized to solicit opinions from the public at the village level through meetings or distributing questionnaires, and these opinions must be compiled and recorded in minutes. Projects and contents selected for priority investment must be agreed upon by the majority of the people. The People's Committee of the commune compiles and submits these plans to the Standing Committee of the Commune People's Council before presenting them to the County People's Committee (hereinafter referred to as County People's Committee).

5. Strengthen decentralization to allow commune-level management of each project under the Program, with the Provincial People's Committee and County People's Committee having the responsibility to guide and strengthen staff assistance to communes so that they can directly manage these projects.

6. Implementation of the Program at the commune level must achieve benefits: the commune receives investment support for socio-economic development; commune cadres, village leaders, and the community are trained and their capabilities enhanced; residents gain employment and increased income from participating in the commune's Program activities; women are prioritized in benefiting from and participating in all activities of the Program.

7. Starting from 2008, each year, a review will be conducted of communes, villages, and hamlets that have achieved their goals, to remove them from the Program's investment scope.

Part II.

SPECIFIC PROVISIONS

I. MECHANISMS FOR IMPLEMENTING PROJECTS.

The Program 135 Phase II has four tasks, which are implemented through projects and policies as follows:

- Project to Support Production Development and Economic Structure Adjustment, Enhancing the Production Capacity of Ethnic Minorities (referred to as the Production Support Project);

- Project for Developing Essential Infrastructure;

- Project for Training and Capacity Building for Village Cadres and Community Members;

- Policy to Support Services, Improve and Enhance People's Livelihoods, and Legal Aid to Raise Legal Awareness;

The following provisions detail the implementation of the projects and policies under Program 135 Phase II.

1. The Project to Support Production Development

1.1. Target Groups

a) Poor households as defined by current regulations;

b) Group Households: The supported group households must meet the following conditions:

- Composed of poor households and other households living in the same community village, having credibility, production experience, and the ability to lead and assist poor households within the group to escape poverty. The group has one elected head to manage and oversee group activities;

- Have commitments or internal rules clearly defining responsibilities, obligations, rights, and contributions (labor, materials, money, etc.) of each member to implement the production plan and use funds effectively to increase income and create jobs for members;

- Households and group households are selected openly and democratically from villages based on prioritizing poorer households for initial support investment. Group households must be established voluntarily by poor households and non-poor households with a shared desire to develop a production activity. The number of non-poor households in the group shall not exceed 20% of the total households in the group, decided by the People's Committee of the commune based on the majority opinion of poor households in the group.

1.2. Content of Investment Support

Based on the orientation for agricultural, forestry, fishery, and industrial economic development and the needs of the people, localities select appropriate, practical contents oriented towards markets, sustainable income, and food security; it is not necessary to invest in all contents simultaneously in the same area to concentrate capital and avoid dispersion.

Specific implementation includes the following:

1.2.1. Supporting agricultural, forestry, fishery, and industrial extension activities to help poor people access services and scientific and technological knowledge for production, enhancing awareness and application in the household and group production plans to develop production in the commune.

1.2.2. Supporting the establishment and dissemination of new production models:

- Models transferring advanced science and technology into production: crop cultivation, animal husbandry, aquaculture, processing of agricultural, forestry, and aquatic products;

- Production models linked with processing, preservation, and consumption of agricultural, forestry, and aquatic products;

- Models for economic structure adjustment at the commune level.

1.2.3. Providing seeds, livestock breeds, and production materials (applicable to poor households):

- Livestock and aquaculture breeds; various crop seeds suitable for local conditions;

- Veterinary drugs, plant protection chemicals.

1.2.4. Purchasing equipment, machinery, and tools for production and product processing and preservation.

1.2.5. Regarding the capital structure: In 2008, the allocation and payment of capital for the Production Support Project will follow current regulations; from 2009, the division of project capital structure will follow the regulations of the Prime Minister.

Capital for implementing these contents must be integrated from various sources: Program 135 capital, preferential loans from the Social Policy Bank according to the Prime Minister's decisions for poor households, self-owned capital of households, and other mobilized capital to concentrate investment in effective production.

1.3. Procedures for Establishing and Approving Investment Production Plans

1.3.1. The Department of Agriculture and Rural Development guides districts in developing annual and long-term plans consistent with the production development direction in the province, advising the Provincial People's Committee to issue (or issuing if authorized by the Provincial People's Committee) detailed guidelines for central policies (if necessary).

1.3.2. The Program 135 Project Management Board or the district specialized department responsible for implementing the project coordinates with village chiefs to convene meetings of villagers (village meetings or inter-village meetings) to announce the content, beneficiaries, and funding support levels for the village (or inter-village) under Program 135, Decision No.: 31/2007/QĐ-TTg, 32/2007/QĐ-TTg, and other loanable funds according to policy, household self-owned capital (in cash, materials, land, labor, etc.), other mobilized capital, market information, and the socio-economic development orientation of the commune to enable households to choose agricultural, forestry, fishery, and small-scale industrial products in a commodity production direction and attract local labor.

The Project Management Board or District Specialized Department, village chiefs have the responsibility to organize meetings with households and groups to discuss and determine the required investment support content (only selecting one to two contents to focus capital investment for effectiveness), reporting the determined content to the project sponsor (commune) for consolidation.

1.3.3. The project sponsor prepares the implementation plan and detailed budget estimate for the commune and the entire 2006-2010 period, submitting it to the District People's Committee for approval.

1.3.4. The District People's Committee compiles the annual plans and the entire 2006-2010 period plans of communes, reviews, approves, and reports to the Provincial People's Committee.

1.3.5. The Provincial People's Committee annually allocates funds based on the central government's assigned capital and local capital to the districts.

1.4. Implementation Organization

1.4.1. The Department of Agriculture and Rural Development assists the Provincial People's Committee in managing state affairs in the province and implements specific tasks according to the Ministry of Agriculture and Rural Development's directives. Specific tasks are stipulated in this Circular and the Handbook for Implementing the Production Support Project issued by the Ministry of Agriculture and Rural Development.

1.4.2. The District People's Committee is responsible for organizing, directing, guiding, supervising, and monitoring the implementation of the project in its jurisdiction.

2. Infrastructure Development Project

2.1. Target Construction Projects

2.1.1. Investment projects in communes: including new construction, repair, renovation, and upgrading of facilities within the commune's territory (including repairs and upgrades of old facilities funded by other sources) as follows:

a) Transportation infrastructure from commune to village, inter-village. The Program 135 funds shall not be used to construct new automobile roads leading to the commune center (for communes that currently lack such roads);

b) Small-scale water conservancy facilities serving within the commune or inter-village areas;

c) Electrical infrastructure from commune to village. The Program 135 funds shall not be used to construct new electrical facilities leading to the commune center (for communes that currently lack national grid electricity at their centers);

d) Schools and classrooms at the commune center, complete with electricity, water supply, ancillary facilities, furniture for learning, facilities for boarding students, teachers' housing; constructing primary schools, kindergartens, nurseries, teachers' housing, ancillary facilities in villages and hamlets where necessary;

e) Commune health stations complete with ancillary facilities, electricity, water supply, essential equipment purchases according to standardized criteria for commune-level healthcare facilities;

f) Markets: only supporting the construction of market sheds and initial land leveling up to 5,000 square meters;

g) Community houses in villages and hamlets where necessary;

h) Centralized water supply facilities.

2.1.2. Investment projects in villages and hamlets within Zone II communes: including new construction, repair, renovation, and upgrading of facilities within the village and hamlet's territory (including repairs and upgrades of old facilities funded by other sources) as follows:

a) Transportation infrastructure from village and hamlet to commune center;

b) Small-scale water conservancy facilities: culverts, dams, pumping stations, irrigation canals, and structures on irrigation canals within the village and hamlet, other water conservancy facilities with a capital investment under 500 million dong;

c) Electrical infrastructure from commune to village;

d) Constructing primary schools, kindergartens, nurseries, teachers' housing, complete with furniture, electricity, water supply, ancillary facilities;

e) Community houses in villages and hamlets where necessary;

g) Centralized water supply facilities.

2.1.3. Projects funded from the Program 135 or other projects on the local territory using more than 50% of Program 135 funds must bear an inscription indicating the project belongs to the Program 135 and basic information: the project owner, contractor, start date, and completion date.

2.2. Investment decision issuance: The People's Committee of the district is responsible for issuing investment decisions for all infrastructure projects under the Program 135.

2.3. Investment plan:

Based on the investment targets specified in point 2.1 and the project list in the overall commune plan, starting from the second quarter each year, the People's Committee of the commune announces and organizes public participation, involving social organizations, to select and review the project list, location, funding (central budget, provincial budget, mobilization), scale of the project in the planning phase for the entire period, and prioritize activities to be included in the next year's implementation plan. The plan is compiled through the Commune People's Council and submitted to the People's Committee of the district for approval. Based on the approved project list for the following year, the investor prepares or hires a consulting organization to prepare the economic and technical report for the construction project, along with the bidding plan, to be reviewed and approved by the Chairman of the People's Committee of the district.

The cost for preparing the economic and technical report is allocated from the annual plan from the budget for projects under the Program 135.

2.4. Preparation, review, and approval of the economic and technical report for construction projects:

2.4.1. Infrastructure investment projects in communes and villages include small-scale projects that do not require investment projects, only economic and technical reports for construction projects, which must be completed within two years. The content of the economic and technical report for construction projects includes: project name, investor name, construction location, project scale, funding source, construction time, completion time, accompanied by design drawings and budget estimates.

2.4.2. The investor or hires a consulting organization to prepare the economic and technical report, bidding plan, and submit it to the Chairman of the People's Committee of the district for review and approval according to regulations; for small and simple projects within villages and hamlets such as cultural houses, classrooms (primary, kindergarten), roads, etc., with an investment amount below 300 million dong, the economic and technical report can be prepared by the investor themselves (if they have the capacity) or requested the People's Committee of the district to designate a relevant department of the county to prepare, the investor submits to the Chairman of the People's Committee of the district for review and approval.

2.4.3. Management of investment costs for infrastructure projects under Phase II of the Program 135 is implemented according to the guidelines set out in Circular No. 02/2008/TT-BXD dated January 2, 2008, issued by the Ministry of Construction, guiding the preparation and management of investment costs for the socio-economic development program in ethnic minority and mountainous regions during the 2006-2010 period.

2.5. Implementation of construction investment projects

2.5.1. Selection of construction contractors is carried out as follows:

a) The investor must publicly announce the tendering process, direct awarding, using one of the following means: county radio station, county television station, at least 15 days before issuing the request for proposal. For community-built projects, only public notice needs to be posted at the commune People's Committee office, village cultural house, market, village meetings, and broadcast on the commune radio station;

b) Tender packages for construction consultancy services are conducted in accordance with the Bidding Law and implementing regulations;

c) Tender packages for goods procurement are conducted in accordance with the Bidding Law and implementing regulations;

d) Tender packages for construction and installation or combined with goods procurement valued at 1 billion dong or more are organized in accordance with the Bidding Law (in accordance with current implementing regulations);

e) Tender packages for construction and installation valued at less than 1 billion dong are implemented as follows:

- Tenders for construction and installation packages with a value of up to 300 million VND under development investment projects shall be conducted through community participation bidding. The investor shall notify the public so that the community can register to participate. In cases where multiple community groups register to participate, the investor shall convene meetings with the registered groups to publicly select based on criteria such as price, schedule, and quality to approve the tender results; if only one community group participates within the notification period (as specified by the investor), the investor shall assign the package to that group. If no community group participates, the investor shall select a suitable contractor to negotiate and sign a contract.

- Construction and installation packages or combined procurement packages (such as pump stations including equipment, power substations...) with a value from over 300 million VND to less than 1 billion VND shall be organized through bidding based on selecting the capabilities and bid prices of at least three participating contractors. If, upon expiration of the announcement period, there are not enough three contractors participating in the tender, the investor shall submit to the People's Committee of the district for consideration and decision.

The bidding process shall be carried out as follows:

+ Publicly announce the organization of the bidding, location, and time for issuing the request for proposal;

+ Prepare and issue the request for proposal;

+ Prepare the submission;

+ Evaluate and review the submissions;

+ Approve the selection of the contractor after review, examination, and approval of the results;

+ Negotiate, finalize, and sign the contract.

g) The following cases are permitted to designate a contractor:

- Emergency tenders to address the consequences of natural disasters and floods;

- Tenders where only one contractor participates;

- Packages implemented through lump-sum contracts based on unit products (million VND/km, m2...) aimed at mobilizing labor from the community, self-organized by the community, with state budget support not exceeding 70% of the investment capital approved by the competent authority.

i) For works constructed by the people in the commune, a minimum advance payment of 50% of the contract value is allowed, but it must not exceed the annual capital plan of the project; for works constructed by enterprises through bidding and designation, a minimum advance payment of 30% of the contract value is allowed, but it must not exceed the annual capital plan of the project.

h) Specific provisions regarding the procedures, methods of selecting contractors, bidding, and construction contracts shall be implemented according to the Bid Guidebook issued jointly by the Ministry of Planning and Investment and the National Ethnic Minorities Commission.

2.5.2. The Chairman of the People's Committee of the district shall approve or delegate approval of the tender results for various packages (except for construction and installation packages valued below 300 million VND, which are approved by the investor). The investor shall approve the results of designated contractors and delegated packages.

2.5.3. Supervise construction activities.

a) Construction supervision organizations include the investor, supervisory consultants, author supervisors, and village supervision boards. The investor shall select a consulting unit with sufficient capacity for construction supervision. In cases where there is no supervisory consultant organization as prescribed, depending on specific conditions, the investor shall organize construction supervision and bear responsibility for their decisions.

b) Investor supervision shall be carried out in accordance with Article 21 of Decree No. 209/2004/NĐ-CP dated December 16, 2004.

2.5.4. Acceptance, handover, and management of operation of works

a) Works acceptance: the investor shall organize the acceptance of completed works, the acceptance team shall consist of:

- Representatives of the Project Management Board;

- Representatives of design consultants, construction organizations, and supervisory consultants;

- Representatives of the investor's supervisor, village supervision board, and representatives of organizations and individuals managing and using the works.

Depending on specific circumstances, the investor may invite additional relevant parties to participate in the acceptance.

b) Handover for management and operation of works

- After acceptance, the investor must hand over the works to the People's Committee of the commune for allocation to villages, units, or individuals responsible for management, use, maintenance, and transfer all related documents to the People's Committee of the commune;

- Maintenance and repair:

+ Infrastructure works located within the commune area serving inter-commune regions, not managed by the People's Committee of the commune (regional clinics, inter-commune roads, boarding schools...), maintenance and repair shall be carried out by the assigned management units from the annual maintenance and repair funds;

+ Works and components serving commercial services or benefiting households and groups of households managed by users, who maintain and repair themselves;

+ Infrastructure works serving common benefits within the commune and village areas funded by sources other than Program 135 shall be managed by the competent authority and allocated to the People's Committee of the commune for maintenance and repair using support funds from the central budget of Program 135, local budget, and other sources. The People's Committee of the commune shall prepare an annual maintenance and repair plan for works under its management and submit it for approval by the People's Committee of the district. The maintenance and repair fund is allocated as a separate item in the commune's annual budget. The People's Committee of the commune is the investor of the commune's maintenance and repair fund, based on the allocated budget, it assigns the Commune Project Management Board (if available) or village, hamlet with works to prepare detailed budgets: state budget support, raised funds, materials, and community labor, submitted for approval by the investor. Material and labor costs are determined by the investor based on the local market prices. Depending on the nature of the work, the village head organizes villagers to maintain or forms maintenance teams. The investor signs contracts and organizes acceptance and payment with the representative of the maintenance team confirmed by the Village Head;

Based on current national regulations on basic construction management and this Circular, the People's Committee of the province shall provide specific guidance on maintenance and repair operations.

3. Training and capacity building projects for commune, village, and community cadres

3.1. Target groups for training and capacity building:

3.1. Training and development subjects:

3.1.1. Specialized staff and commune-level civil servants; non-specialized commune-level and village-level cadres as prescribed in Decree No. 121/2003/NĐ-CP dated October 21, 2003 of the Government on the system and policies for commune, ward, town cadres and civil servants and subsequent amendments and supplements (if any);

3.1.2. Cadres strengthened to assist the commune by superiors;

3.1.3. Members of the Commune Management Board and Supervision Board;

3.1.4. People with prestige in the community of villages and hamlets;

3.1.5. Poor households and experienced households playing a positive role in poverty reduction and rural development at the commune and village levels;

3.1.6. Cadre sources within the commune's planning scope;

3.1.7. Legal aid volunteers at the commune level and members of legal aid clubs in communes;

3.1.8. Ethnic minority youth aged 16 - 25.

Among all subjects under Clause 3.1, priority shall be given to ethnic minority cadres and women.

3.2. Training and capacity building content

a) Policies for economic and social development in ethnic and mountainous regions; knowledge of science and technology, enhancing awareness and applying them to household economic development;

b) Management mechanisms for implementing Program 135: knowledge about project management, monitoring and evaluation, comprehensive reporting, application of information technology in investment management, comprehensive reporting and monitoring and evaluation; settlement and finalization of funds for projects and policies under Phase II of Program 135;

c) Democratic regulations at the grassroots level and community participation in implementing the Program: organizing people's meetings, consolidating opinions, planning, supervising investments;

d) Vocational training support for ethnic minority compatriots (to be implemented in conjunction with Decision No. 81/2005/QĐ-TTg dated April 18, 2005 of the Prime Minister on short-term vocational training support policies for rural laborers, applicable only to youth aged 16 - 25);

e) Relevant legal knowledge.

3.3. Training and capacity building materials

Training and capacity building materials shall be compiled and published by the Committee for Ethnic Minorities in coordination with relevant ministries and sectors; specific local materials shall be compiled and uniformly used in the locality under the direction of the provincial People's Committee.

3.4. Time and form of training and capacity building

3.4.1. Training and capacity building for commune and village cadres: duration for one class from 3 to 4 days, maximum not exceeding 7 days. For the Project Management Board and principal investors, if deemed necessary, the training and capacity building duration for one class shall not exceed 20 days; training and capacity building materials shall be compiled and approved by the provincial People's Committee;

3.4.2. Community training (for residents): duration for one class from 2 to 3 days, maximum not exceeding 5 days. The main form of training and capacity building shall be concentrated in each village or inter-village, organizing field meetings, visiting learning models of production.
If deemed necessary, the training and capacity building content may be repeated after 6 months or 1 year, but must select practical content and the training duration shall not exceed 2 days.

Travel expenses for study tours within and outside the province shall not exceed 5% of the total annual project capital plan budget.

3.5. Training and capacity building plan

3.5.1. Based on priority issues during the implementation of the program in the implementation phase, based on the training and capacity building content and subjects, the commune People's Committee shall compile statistics, classify qualifications and professional capabilities, select training and capacity building subjects and wishes, and report to the county People's Committee;

3.5.2. The county People's Committee shall classify subjects, consolidate training needs, funding requirements, and develop a training plan to report to the provincial People's Committee;

3.5.3. The provincial Program 135 Steering Office shall organize the development of annual and long-term training plans and submit them for approval by the provincial People's Committee;

3.5.4. Based on the actual project capital allocation plan, the provincial Program 135 Steering Office shall coordinate with the Department of Planning and Investment and the Department of Finance to develop a capital allocation plan, report to the provincial People's Committee, and submit it to the Provincial People's Council for decision and record separately;

- The county People's Committee directly manages and implements the training budget allocated to it;

- The provincial Program 135 Steering Office and related departments only manage the allocated budget according to the plan;

3.5.5. Project implementation funds are arranged from the state budget's operating expenses. The use of training and capacity building funds of the project is carried out as follows:

- Printing costs for various training materials are implemented according to current regulations;

- Costs for compiling programs and textbooks: the cost level is applied according to Circular No. 87/2001/TT-BTC dated October 30, 2001 of the Ministry of Finance;

- Payment for lecturers and foreign experts (if any) is made according to the level specified in Circular No. 51/2008/TT-BTC dated June 16, 2008 of the Ministry of Finance guiding the management and use of training and capacity building funds for state officials and civil servants;

- Costs for supporting food, accommodation, travel, office supplies, drinking water, and other expenses for trainees and representatives during training are implemented according to Circular No. 23/2007/TT-BTC dated March 21, 2007 of the Ministry of Finance regarding travel expenses and meeting organization costs for state agencies and public institutions;

- Specifically, for commune-level cadres and civil servants, specialized and non-specialized commune-level cadres, and non-specialized village-level cadres as prescribed in Decree No. 121/2003/NĐ-CP dated October 21, 2003 of the Government on the system and policies for commune, ward, town cadres and civil servants in disadvantaged communes, border communes, revolutionary base area communes, communes in Zone II with disadvantaged villages, disadvantaged villages in communes in Zone II, and those without salaries when participating in training and capacity building under the program, they shall be provided with full training, accommodation, and travel expenses according to the level specified in Circular No. 23/2007/TT-BTC;

- For ethnic minority youth aged 16 - 25 who are dispatched for vocational training by authorized authorities, in addition to the policy stipulated in Decision No. 81/2005/QĐ-TTg dated April 18, 2005 of the Prime Minister on short-term vocational training support policies for rural laborers, they will also receive additional support:

+ Food allowance during vocational training: maximum 10,000 VND/person/day;

+ Travel expenses: Persons from poor backgrounds who undergo vocational training at locations more than 15 kilometers away from their place of residence shall be supported with travel expenses according to the public transportation fare, but not exceeding 200,000 VND/person/course;

+ Class management costs (maximum not exceeding 5% of the budget estimate).

Based on the expenditure levels specified in the central guidelines, the People's Committee of the province shall direct the implementation of each expenditure item in accordance with the conditions of the province.

4. Support policies for services, improving and enhancing people's living standards, and legal assistance to raise legal awareness.

Implemented pursuant to Decision No. 112/2007/QĐ-TTg dated July 19, 2007 of the Prime Minister and Circular No. 06/2007/TT-UBDT dated September 20, 2007 of the Ethnic Council on guiding the implementation of support policies for services, improving and enhancing people's living standards, and legal assistance to raise legal awareness.

II. FOR PROJECTS IMPLEMENTED AS TASKS THEN THE PROJECT MANAGEMENT ORGANIZATION SHALL BE CONDUCTED AS FOLLOWS.

1. Project sponsor

Construction projects and investment programs that have interrelated components and are used across multiple communes shall be sponsored by the People's Committee of the district; construction projects and programs managed and used by a commune shall be sponsored by the People's Committee of the commune.

In cases where the commune has difficulties in acting as the project sponsor, the People's Committee of the district shall assign staff to assist the commune so that it meets the necessary conditions to act as the project sponsor.

In cases where the commune does not meet the conditions to act as the project sponsor, the People's Committee of the district shall entrust the appropriate unit within the district to act as the project sponsor. The People's Committee of the commune shall appoint personnel to participate alongside the project sponsor to manage the project and organize the acceptance of the completed works for operation and use.

2. Project Management Board

2.1. The project sponsor may decide to hire individuals or organizations to provide consulting services or establish a Project Management Board (if necessary) to assist the project sponsor in managing and operating the project.

2.2. In cases where the project sponsor hires individuals or organizations to provide consulting services for managing and operating the project, such consultants must have the necessary qualifications and capabilities suitable to the scale and nature of the project. The responsibilities and authorities of the project management consultant shall be carried out in accordance with the agreement between both parties. When applying the form of hiring a project management consultant, the project sponsor still needs to use specialized units under its own management system or designate a focal point to monitor the implementation of the project management consulting contract.

2.3. In cases where the project sponsor establishes a Project Management Board, the tasks and authorities of the Project Management Board shall be assigned or delegated by the project sponsor to perform part or all of the tasks and authorities of the project sponsor. The establishment of the Project Management Board shall be conducted as follows:

2.3.1. For communes acting as sponsors: utilize the commune’s common Project Management Board to implement the project. The commune’s Project Management Board shall have legal personality, open an account at the District Treasury, and use the commune’s seal for transactions. If the commune does not yet have a Project Management Board, it shall establish one in accordance with this Circular;

2.3.2. For districts acting as sponsors: the People's Committee of the district shall establish a Project Management Board or entrust an existing one to carry out the project. The Chairman or Vice-Chairman of the People's Committee of the district shall not concurrently hold the position of head of the Project Management Board. The district-level Project Management Board shall open an account at the District Treasury and have its own seal.

3. Tasks and authorities of the project sponsor and the Project Management Board when the project sponsor establishes a Project Management Board:

3.1. Tasks and authorities of the project sponsor:

3.1.1. Organize the preparation and submission of investment decision approval reports on economic and technical construction project reports and bidding plans;

3.1.2. Organize the review of construction design drawings and project estimates;

3.1.3. Approve the results of direct awarding and submit the results of contractor selection for approval;

3.1.4. Sign contracts with contractors;

3.1.5. Pay contractors according to the contract schedule or the completion certificate;

3.1.6. Inspect and accept the construction project for operation and use.

Depending on the specific characteristics of the project, the project sponsor may delegate some or all of its tasks and authorities to the Project Management Board.

3.2. Tasks and authorities of the Project Management Board;

3.2.1. Implement procedures for land transfer, site preparation for construction, and other work to serve the construction of the project;

3.2.2. Prepare the economic and technical construction project report and bidding plan for the investment decision-making body to review and approve according to regulations;

3.2.3. Prepare tender request documents, tender invitation documents (if applicable), publicly announce the bidding process, and organize the selection of contractors;

3.2.4. Negotiate and sign contracts with contractors according to the authorization of the project sponsor;

3.2.5. Carry out construction supervision tasks when having the necessary qualifications and capabilities;

3.2.6. Inspect, settle accounts, and finalize accounts according to signed contracts;

3.2.7. Manage the quality, quantity, progress, cost, safety, and environmental protection of the construction project;

3.2.8. Inspect and hand over the project;

3.2.9. Prepare annual investment capital execution reports and final settlement reports when the project is completed and put into operation and use;

3.2.10. The Project Management Board may simultaneously manage multiple projects if permitted by the project sponsor.

4. Tasks of the project sponsor and the organization providing project management consulting services when the project sponsor hires a project management consulting service

4.1. Responsibilities of the project sponsor:

4.1.1. Select and sign a contract with a project management consulting organization that has the necessary qualifications and capabilities suitable for the project;

4.1.2. Make payments to contractors based on the requests of the project management consulting organization;

4.1.3. Create favorable conditions for the activities of the project management consulting organization;

4.1.4. Bear legal responsibility and compensate for losses resulting from collusion with the project management consulting organization or contractors causing loss of investment funds.

4.2. Tasks of the organization providing project management consulting services:

4.2.1. Prepare tender request documents, tender invitation documents (if applicable), and advise on selecting contractors;

4.2.2. Carry out construction supervision tasks when having the necessary qualifications and capabilities;

4.2.3. Inspect, settle accounts, and finalize accounts for contracts signed by the project sponsor; the project management consulting organization shall bear full responsibility before the project sponsor and the law for the accuracy and reasonableness of the payment value.

4.2.4. Managing the quality, quantity, progress, cost, safety, and environmental hygiene of the project;

4.2.5. Acceptance and handover of works;

4.2.6. Preparing annual investment capital implementation reports, final settlement reports when the project is completed and put into operation and use;

Depending on the conditions of the project, the investor may entrust other tasks to the project management consultant, which must be specifically recorded in the contract.

4.2.7. The project management consulting organization shall be responsible under the law and to the investor for the contents committed in the contract. They must compensate for losses caused by their own fault during the project management process. The project management consultant shall be responsible for all project management activities at the construction site.

5. Village Supervision Board

Villages (including villages in Zone II with ethnic minority hamlets) shall establish a Village Supervision Board to oversee the implementation of projects and support policies under Program 135 within their village area. The Village Supervision Board shall be established by the Chairman of the People's Committee of the village upon the proposal of the Vietnam Fatherland Front Committee of the village. The composition of the Village Supervision Board includes representatives from political and social organizations of the village; representatives from the People's Council of the village; reputable individuals with supervisory capabilities and experience in the community. For villages in Zone II with ethnic minority hamlets, the Village Supervision Board must include at least two representatives from the ethnic minority hamlet elected by the people.

5.1. The Village Supervision Board has the responsibility to supervise the construction of works and projects implemented within the village area from the stage of selecting works, surveying and designing through construction, acceptance, handover, putting the works into use, final settlement of works, and warranty of works.

5.2. During the construction phase, the Village Supervision Board shall cooperate with the supervision of the investor (supervision of the project management board, supervision consultant), author supervision to monitor the quality, quantity, material prices, progress of construction, etc., and they shall be members of the work acceptance team at various stages.

III. USE OF INVESTMENT CAPITAL

1. Investment Capital:

Program 135 Phase II is funded by multiple sources as stipulated in Decision 07/2006/QĐ-TTg:

1.1. Central budget (including both loan and foreign aid funds) directly invested in Program 135;

1.2. Local budget directly invested in Program 135;

1.3. Legally raised local capital; support from various sectors, economic units, social organizations, and contributions from other localities in the form of money, materials, labor; mobilized resources locally from the people, mainly materials and labor, without raising funds in cash from poor households.

2. Allocation of Project and Policy Funds

2.1. The preparation of budgets, allocation, and management of state budget funds shall be carried out in accordance with the State Budget Law and related guiding documents;

2.2. For villages in Ethnic Minority Hamlets implementing Program 135 tasks from the local budget according to the Prime Minister's Decision, the provincial People's Committee shall allocate funds to ensure that the level is at least equivalent to the standard set by the central budget.

3. Use of Central Government Investment Capital

3.1. Central government capital can only be used to support projects and policies according to the contents specified in Section I, Part II of this Circular.

3.2. For construction materials, planting seeds, livestock, and other goods purchased from the people for use in Program 135 projects, prices must be consistent with the general market price levels in the same period; payment vouchers are purchase receipts with confirmation from the village head where the sale took place, confirmed by the People's Committee of the village.

3.3. Localities with projects and programs already implemented according to the guidelines of Program 135 Phase 1999-2005 before the issuance of these circular guidelines may continue to use Program 135 Phase II funds from the central budget allocated annually to complete projects that have been settled, those not yet settled, and ongoing projects in villages continuing to implement Program 135 Phase II.

3.4. Operating costs of program guidance agencies at all levels shall be guaranteed from the local budget and other legitimate sources to carry out their functions. For provinces receiving additional balance transfers from the central budget, the program funds can be used to support expenditures for the activities of the Steering Committee: inspection, supervision, organizing meetings to deploy, review, and summarize the implementation of the program, travel expenses for officials attending provincial, district, and central training sessions, office equipment for steering committee activities; the annual support amount shall not exceed 0.5% of the total central budget support for the program, with a minimum of 50 million VND per year and a maximum of 500 million VND per year, starting from 2007. The Provincial People's Committee shall allocate these funds specifically to the provincial Steering Committee, direct steering agencies, and local levels.

3.5. All investment capital for implementing Program 135 from the budget must be centrally managed and settled through the State Treasury. For contributions in cash from the people, materials, donations in kind, labor, or completed works, based on current unit prices and the value of working days, financial authorities shall convert them into Vietnamese dong to issue revenue orders, while also issuing expenditure orders sent to the State Treasury branch for accounting purposes, incorporating the value of the works and projects into the national budget revenue and expenditure.

3.6. Based on supplementary budget allocations from the central budget for local budgets as authorized by competent authorities for provinces within the program scope; the Minister of Finance shall transfer funds to localities according to Circular No. 86/2006/TT-BTC dated September 18, 2006, issued by the Ministry of Finance, guiding the management of supplementary budget allocations from the central budget for local budgets and any subsequent amendments (if applicable).

IV. COMBINED HANDOVER AND REPORTING OF PLANS.

The establishment, allocation, decision-making on budget allocation, management, use, and final settlement of Program 135 funds shall be carried out in accordance with the State Budget Law and related guiding documents.

V. INSPECTION, SUPERVISION, EVALUATION, AND REPORTING OF RESULTS.

1. Inspection, supervision, and evaluation

1.1. The People's Committee of the province shall be directly and fully responsible for the quality, progress, and effectiveness of the program within its jurisdiction. Based on the objectives of Program 135 and the actual conditions of the province, the People's Committee of the province shall direct the districts to develop targets to be achieved annually, at each stage, and upon completion of the program to serve as a basis for monitoring and evaluating the results of the program throughout the province.

1.2. The People's Committee of the province shall direct relevant units and districts to regularly organize inspections of the implementation of the program. The provincial Steering Committee Office of Program 135 shall take the lead in proposing inspection plans and contents, assisting the People's Committee of the province in compiling and reporting evaluation results to the central Steering Committee Office of Program 135 (National Ethnic Minorities Commission).

1.3. The People's Committee of the province shall direct departments, agencies, district People's Committees, and related units to create favorable conditions for local People's Councils at all levels, the United Front and social organizations at all levels, and communities to participate in and cooperate in supervising the implementation of the program.

1.4. National Ethnic Minorities Commission:

- Shall take the lead in coordinating with relevant ministries and sectors to propose plans and organize inspections, supervision, and evaluation of the program's implementation annually, mid-term, and at the end of the program;

- Shall coordinate with the State Audit Agency to develop annual audit plans for the program's implementation and submit them to the Government for decision.

2. Reporting system for program implementation results

2.1. Based on the monitoring and evaluation indicators issued by the National Ethnic Minorities Commission, the People's Committee of the province shall be responsible for directing the organization of data collection and reporting at all local levels to compile reports sent to the Central Steering Committee. At each level, the management agency of the program must have dedicated staff for reporting and consolidation work. For disbursement figures, before submitting the report, the project sponsors must reconcile the figures with those confirmed by the Treasury at the account-opening location.

2.2. Quarterly and annual reports shall be prepared according to Decision No. 04/2008/QD-UBDT dated August 8, 2008, of the Minister and Chairman of the National Ethnic Minorities Commission on the issuance of regulations and reporting forms for the Economic-Social Development Program for Particularly Difficult Communes in Ethnic Minority and Mountainous Areas for the period 2006-2010. In addition to the general report, specialized agencies of the province shall report to higher-level agencies as required.

2.3. The Central Steering Committee Office of Program 135 shall compile and send reports to the Central Steering Committee every six months and annually.

Part III.

IMPLEMENTATION

1. Based on this joint circular and their respective functions and responsibilities, relevant central agencies shall provide guidance and specify necessary contents.

2. Handling transitional issues: ensuring principles when implementing according to the new guiding circular do not interrupt or delay the program's progress, specifically as follows:

- Support for production development projects: projects approved by competent authorities before the effective date of this circular that are still ongoing shall continue to be implemented according to the guidelines at the time of approval. Projects approved but not yet implemented may be supplemented and adjusted according to current regulations;

- Infrastructure development projects: projects whose economic-technical reports and construction bidding selections were approved by competent authorities before the effective date of this joint circular shall be implemented according to applicable guidelines at the time of approval;

- Community and grassroots cadre training projects: training classes whose plans and budgets were approved by competent authorities but not yet implemented may be supplemented and adjusted according to the guidelines set out in this circular. Training classes already implemented or partially completed shall follow the guidelines at the time of approval or be adjusted according to new guidelines if necessary;

- During implementation, if there are specific references to documents applied for implementation in this joint circular that are decided to be replaced, amended, or supplemented by competent authorities, such documents shall be applied according to the corresponding changes and supplements in those documents.

3. The People's Committee of the province shall specify and guide in accordance with the special conditions of the locality.

4. The People's Committee of the province shall assign the provincial ethnic affairs agency to act as the Program's permanent office. The Program's permanent office shall take the lead in coordinating with provincial departments and agencies to advise the People's Committee of the province on managing the program and shall have the following tasks:

4.1. Coordinate with the provincial Department of Planning and Investment and the provincial Finance Department to guide districts in preparing annual plans, consolidate annual capital implementation plans on the territory, and report to the People's Committee of the province;

4.2. Consolidate capital implementation plans for projects and policies under Program 135 of the districts and submit them to the provincial Department of Planning and Investment and the provincial Finance Department for integration of funds on the territory;

4.3. Based on the guidance from central ministries and sectors, take the lead in coordinating with related units to advise the People's Committee of the province to issue appropriate guidance in line with local conditions;

4.4. Implement certain components of the cadre training and capacity-building project for grassroots cadres and communities when assigned by the People's Committee of the province;

4.5. Take the lead in assisting the provincial Steering Committee for target programs in organizing inspections, monitoring, evaluating, and compiling reports according to provincial regulations and the Central Steering Committee Office of Program 135;

4.6. Perform other tasks assigned by the People's Committee of the province.

5. The People's Committee of the district shall establish the Program 135 District Permanent Office. The district permanent office shall advise the district People's Committee on managing, directing, inspecting, and compiling reports on the program's implementation from management units and communes with projects across the entire district.

6. In cases where a commune acts as the project sponsor (including communes in Zone II with ethnic minority villages within the scope of investment under the Program), if it is necessary to establish a Project Management Board, the commune shall have one such Program 135 Project Management Board established by the People's Committee of the commune. The members of the commune-level Project Management Board include the Head of the Project Management Board and other members: accountant, staff member of the People's Committee of the commune, contracted staff with specialized expertise, term-based members (village head or deputy village head, etc.) who have projects or works invested in their village, and reputable community members, prioritizing female members for participation in the Project Management Board. The commune-level Project Management Board has legal personality, is entitled to open an account at the State Treasury of the district, and may use the seal of the People's Committee of the commune for transactions. The Project Management Board is responsible for managing all projects and policies on its territory assigned by the project sponsor.

7. Ministries and levels based on their functions and responsibilities shall be responsible for directing, inspecting, supervising, and urging the implementation of this joint circular.

8. This circular replaces Circular No. 676/2006/TTLT/UBDT-KHĐT-TC-XD-NNPTNT dated August 8, 2006, issued jointly by the Ministry of Ethnic Affairs, the Ministry of Planning and Investment, the Ministry of Finance, the Ministry of Construction, and the Ministry of Agriculture and Rural Development regarding guidance on implementing the Socio-Economic Development Program for Ethnic Minority Villages and Mountainous Areas. It shall take effect fifteen days after its publication in the Official Gazette. Based on this joint circular, central and local agencies shall be responsible for amending, supplementing, replacing, or abolishing contents of documents or related documents that have been issued but are no longer in line with this joint circular. During the implementation process, any issues or inconsistencies should be reported by the People's Committees of provinces and centrally-administered cities within the scope of Program 135 Phase II to the Ethnic Minorities Commission for coordination with relevant ministries and sectors to study, amend, and supplement accordingly.