Decision No. 02/2014/QD-TTg On the organization and operation of the Vietnam Environment Protection Fund

Pursuant to …;

Regarding the organization and operation of the Vietnam Environment Protection Fund

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Pursuant to the Law on Organization of the Government dated December 25, 2001;

The Prime Minister issues this Decision amending and supplementing certain provisions of the Regulation on Response Activities to Oil Spill Incidents issued together with Decision No. 02/2013/QĐ-TTg dated January 14, 2013 of the Prime Minister.

Pursuant to the Law on Biodiversity dated November 13, 2008;

Pursuant to Decree No. 21/2013/NĐ-CP dated March 4, 2013, promulgated by the Government, stipulating the functions, tasks, powers, and organizational structure of the Ministry of Natural Resources and Environment;

Pursuant to Resolution No. 35/NQ-CP dated March 18, 2013 of the Government on urgent issues in the field of environmental protection;

At the proposal of the Minister of Natural Resources and Environment;

The Prime Minister issues this Decision on the organization and operation of the Vietnam Environment Protection Fund,

Article 1. Scope of Regulation

This Decision stipulates the organization and operation of the Vietnam Environment Protection Fund (hereinafter referred to as the Fund), including: position and functions, principles of operation, tasks and powers, management machinery, operational capital sources, and the responsibilities of relevant Ministries and sectors regarding the organization and operation of the Fund.

1. Inland waterway port inspection service is the agency implementing specialized state management functions in inland waterway transport at ports, inland waterway wharfs (hereinafter referred to as ports, wharfs), anchorage areas; on channels and routes when assigned by the Minister of Transport to ensure compliance with laws on inland waterway traffic order and safety and environmental protection.

1. The Vietnam Environment Protection Fund is the National Environmental Protection Fund, a state financial organization under the Ministry of Natural Resources and Environment; it has legal personality, registered capital, seal, and its own balance sheet, and is allowed to open accounts at the State Treasury and credit organizations according to the provisions of the law. The main office of the Fund is located in Hanoi City.

2. The Vietnam Environment Protection Fund has the function of providing preferential interest loans, funding, and interest rate support for programs, projects, activities, and tasks of environmental protection and climate change response that are not included in the national budget plan throughout the country.

3. The English name of the Fund is Vietnam Environment Protection Fund, abbreviated as VEPF.

Article 3. Principles of Operation

1. The Vietnam Environment Protection Fund operates without profit-making objectives but must preserve the registered capital and cover management costs on its own, exempt from tax payments and other national budget contributions for activities in the field of environmental protection according to the laws on taxation and the national budget.

2. The Fund is subject to inspection, audit, and financial supervision of its activities by state financial management agencies and the State Audit Office.

3. The Fund operates openly, transparently, and impartially.

Article 4. Tasks of the Fund

1. Receiving, managing, and utilizing various sources of funds from the state budget, sponsorships, contributions, and entrusted funds from domestic and foreign organizations and individuals to financially support environmental protection and climate change response activities nationwide.

2. To provide preferential interest loans for environmental protection projects nationwide.

3. To subsidize interest rates for environmental protection projects borrowing from credit organizations in accordance with the law.

4. Funding and co-funding environmental protection activities: pollution remediation, responding to and mitigating consequences caused by environmental accidents and natural disasters, activities to disseminate and promote environmental resource management and marine and island environment exploitation; implementing programs, projects, plans, and tasks as decided by the Prime Minister; supporting the awarding of environmental prizes and commendation forms to honor exemplary organizations and individuals in environmental protection; implementing environmental protection projects and tasks as specified in the Charter of the Fund's organization and operation.

5. To accept environmental restoration guarantees from organizations and individuals permitted to extract minerals.

6. Implementing certain financial mechanisms and policies for Clean Development Mechanism (CDM) investment projects, including:

a) To monitor, manage, and collect fees for certified emission reduction certificates (CERs) issued by the CDM Executive Board to CDM projects implemented in Vietnam;

b) Supporting dissemination and promotion activities to raise awareness about CDM investment projects; reviewing and approving CDM project documentation; managing and supervising CDM projects;

c) Subsidizing products from CDM projects.

7. Providing electricity price support for grid-connected wind power projects according to the Prime Minister's Decision and current laws.

8. Financially supporting activities to respond to climate change as prescribed by law.

9. Organizing the assessment and approval of the level, time, and form of financial support for environmental protection projects and tasks using support funds from the Fund according to the Charter of the Fund's organization and operation.

10. Submitting to the Minister of Natural Resources and Environment for consideration and decision on emerging support contents and forms during operations.

11. Implementing programs, projects, and tasks assigned by the Prime Minister and the Minister of Natural Resources and Environment.

Article 5. Powers and Duties

1. To organize administrative bodies and business units in accordance with the Fund's Charter and assigned goals and tasks.

2. Regularly and spot-checking organizations using Fund capital in the implementation of environmental protection and climate change activities and projects. The Fund has the right to withdraw loaned capital, suspend funding, or interest rate support for borrowers who breach commitments with the Fund or violate state regulations; initiating legal actions against violators according to the law.

3. Using idle Fund capital to deposit in commercial banks for the purpose of preserving and developing Fund capital but ensuring safety.

4. To implement and receive technical assistance activities from domestic and foreign organizations and individuals to enhance the Fund's capacity.

5. To refuse requests from organizations or individuals for Fund information if such requests contravene the law and the Fund's Charter.

6. To directly engage with domestic and foreign organizations and individuals to solicit, attract, and receive sponsorships or additional funding for the Fund in accordance with the law.

7. To send Fund staff abroad for work, study, observation, and survey missions in accordance with the law.

Article 6. Organizational Structure, Management and Operation System

The organizational structure, management, and operational machinery of the Fund include the Management Board, Supervisory Board, and Business Operation Agency.

1. The Fund Management Board consists of the Chairman and members.

a) The Chairman of the Fund Management Board is a Deputy Minister of the Ministry of Natural Resources and Environment.

b) Members include the Director of the Fund and leaders of the Department level of the Ministries and agencies: Natural Resources and Environment, Finance, Planning and Investment, and the State Bank of Vietnam.

c) Based on the proposal of the Ministries and agencies: Finance, Planning and Investment, State Bank of Vietnam, Natural Resources and Environment, the Minister of Natural Resources and Environment considers and decides on the list of Fund Management Board members.

The Fund Director works as a full-time member of the Fund Management Board; other Management Board members work part-time and enjoy benefits according to current regulations.

d) Annually, the Fund Management Board sets preferential mechanisms, scope of preferences, preferential interest rates, and supports environmental protection products and projects.

đ) The tasks, powers, and working regimes of the Management Board of the Fund are implemented according to the provisions of the Charter on organization and operation of the Fund.

2. The Supervisory Board includes the Chairman of the Supervisory Board and several members.

The Chairman of the Supervisory Board and Supervisors are appointed and relieved of duty by the Minister of Natural Resources and Environment based on the proposal of the Fund Management Board Chairman. The number of Supervisory Board members does not exceed five people.

The Supervisory Board operates under a full-time regime.

3. The Fund's Business Operation Agency includes: Director, Deputy Directors, Chief Accountant, and business departments, centers, branches, and Southern and Central Region Representative Offices.

a) The Director is the legal representative of the Fund appointed or relieved of duty by the Minister of Natural Resources and Environment based on the proposal of the Fund Management Board Chairman.

b) Deputy Directors and Chief Accountants are proposed by the Fund Director, reviewed by the Fund Management Board Chairman, and submitted to the Minister of Natural Resources and Environment for appointment or relief of duty.

c) The organizational structure, functions, and tasks of the business departments, centers, branches, and Representative Offices of the Business Operation Agency are defined by the Fund Director after obtaining the approval of the Fund Management Board Chairman.

d) The Business Operation Department of the Fund works under a full-time regime.

d) Employees working at the Fund enjoy salary, bonus, welfare, and other benefits as prescribed for a wholly state-owned limited liability company.

Article 7. Capital of the Fund

1. Increase the charter capital of the Fund provided by the state budget from five hundred billion to one thousand billion VND over three years (2015 - 2017); by 2017, provide the full amount of one thousand billion VND.

The increase in the registered capital of the Fund is decided by the Prime Minister based on the proposal of the Ministry of Natural Resources and Environment after reaching consensus with the Ministry of Finance.

2. Annual supplementary capital from the following sources:

a) The state budget allocates funds for environmental public services to cover the costs of financing environmental protection projects and tasks completed annually and to supplement the operating capital of the Fund.

Annually, the Ministry of Natural Resources and Environment compiles the demand for using funds from the state budget for environmental public services of the Fund and submits it to the Ministry of Finance for consideration and decision;

b) Compensation payments for environmental damage and biodiversity losses collected into the state budget;

c) Fees from the sale and transfer of certified emission reduction certificates (CERs) obtained from Clean Development Mechanism projects implemented in Vietnam;

d) Grants, support, voluntary contributions, and entrusted investments from organizations and individuals both within and outside the country for environmental protection and climate change response activities;

đ) Other legitimate sources of capital as prescribed by law;

Article 8. Responsibilities of Relevant Ministries and Agencies

1. The Ministry of Natural Resources and Environment is the state management agency for the Fund's activities and bears responsibility therefor.

a) Issuing the Charter on the organization and operation of the Fund in accordance with this Decision and current laws;

b) Deciding on the establishment of the Management Board of the Fund, appointing and dismissing leadership personnel of the Fund within its authority;

c) Direct and guide the Fund to cooperate with the Global Environment Facility (GEF) and international organizations in providing financial support for environmental protection and climate change response activities;

d) Taking the lead in implementing financial management compliance checks; approving the annual financial settlement report of the Fund;

đ) Serve as the focal point for resolving common issues and cross-sectoral issues of the Fund before submitting them to the Prime Minister for decision and approval.

2. The Ministry of Finance shall be responsible for guiding the implementation of financial management regulations for the Vietnam Environmental Protection Fund.

3. The Ministry of Planning and Investment shall be responsible for guiding the Fund in mobilizing, managing, and implementing grants, ODA, and preferential loans from sponsors and international organizations in accordance with the regulations of the Government of Vietnam and the requirements of the sponsors.

4. Relevant ministries and agencies shall perform their functions and tasks within their assigned authorities.

Article 9. Implementation Provisions

1. This Decision takes effect from March 25, 2014. It replaces Decision No. 35/2008/QĐ-TTg dated March 3, 2008, of the Prime Minister on the organization and operation of the Vietnam Environmental Protection Fund.

2. The Ministers of the ministries, the heads of ministerial-level agencies, the heads of government agencies, the Chairmen of the People's Committees of provinces and centrally governed cities, the Chairman of the Management Board, and the Director of the Vietnam Environmental Protection Fund are responsible for implementing this Decision./.